The process of buying a home starts with determining your buying power: that is, your cash available plus your borrowing capacity.
Unless you are an all cash buyer you will need a “financial partner” , also known as HOME LOAN LENDER, to provide the funds you don’t have to purchase your new home. This requires you to show/convince your new “Partner”, that you have the capability to pay back the funds they will advance you to enable you to purchase your home.
Whether you’re a first-time buyer looking for the perfect starter house, or a seasoned pro trading up to your Custom Mountain dream home, you are probably asking the same questions: Can I afford this? And is this the right move at the right time?
Of course, you can use a mortgage calculator and ask the experts — lenders, agents, and mom — but the reality is that you are the only one who truly knows whether you can afford to buy right now. Best place to start is a detailed income vs expense report. You can do this on your own or Diane and her trusted home loan specialists can help. It will help you analyze what you earn and what you spend and the home loan specialist will be able to let you know what owning a home will cost, both monthly and the costs of closing on a home. This is valuable information and costs you nothing up front.
Understanding how much home you can afford is a vital first step in the buying process – often, it’s the difference between having your offer accepted or rejected. Diane’s policy is for each Buyer to obtain a “Pre-Approval” letter from a reputable Mortgage Lender which will be included with any purchase offer you wish to submit on a home. You really can not make any serious offer on a home without this. Diane can assist you in this process.
A loan officer will get you started by asked a series of questions such as: your available cash reserves, income, current debt, any to cash to be freed up on the sale of any assets, employer provided allowances for moving costs, and so on.
In this way, you can receive a good estimate of your purchasing power and recommendations to home loan lenders most suited to help you whether you require: FHA, VA, Jumbo, Conventional, or a special first time home buyer program.
Diane will do this for you whether you are Credit Perfect or Credit Challenged! It’s never too early — even if you know you have things on your credit that need to be “healed”. The loan officer will help you determine what is important and what is not regarding your credit history and owning a home, and then will help you to speed the process of fixing any issues along so that you can qualify for a home loan sooner rather than later.
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