When evaluating how much you can afford for your home and mortgage, lenders usually use two rules of thumb:

1.Your maximum monthly mortgage payment should not exceed 28 percent of your gross (pre-tax) income.

2. Your maximum debt load, including your mortgage payment, should not exceed 30 percent of your gross income.

These ratios are typical of those required to secure a conventional mortgage. Lenders will be able to supply details about other types of mortgages, such as FHA or VA loans, which offer more flexible qualification standards. There are many types of mortgages and financial tools available that provide flexibility in interest rates, terms, and down payment requirements.

Typically you will first pre-qualify for a mortgage, then get pre-approved before you have found the specific home you wish to purchase. What is the difference?

Pre-Qualification:

An informal determination by a lender or mortgage broker stating how much mortgage you can afford.

Pre-Apporval:

A guarantee in writing by a lender to grant you a loan up to a specified amount.

What are the advantages of being pre-approved?

There are two advantages of being pre-approved for a loan as early as possible in your home-buying process:

1. Some homes cannot even be shown to you without prequalification or pre approval.

2. Many Sellers may not even accept an offer without pre-approval for a mortgage.

3.The length of time before closing can be shorter if you’ve completed the steps to securing mortgage approval prior to signing a contract on a property.

Getting prequalified is an easy

free, no-obligation service and your information always remains private. For an accurate information please include as many details as possible and be sure and indicate Amylee Evans Barden as your agent and Jennifer Rich of First Priority Mortgage as your Mortgage consultant.

Jennifer is located right in our facitilites and and happily assists my clients in this information gathering. For free, confidential prequalification from Jennifer at first priority Mortgage click here or fill out the information below.