Real Estate with Dallice – Pre-qualification
Before you go looking for a property, you need to know what price range you’ll be shopping in, right?
How do you know what price range you should be shopping in? Simple. Visit a local, reputable lender and have a conversation. FYI, this should be one of your first steps because with a little information, you lender can really help. This first call is an INVESTMENT in your future. The decisions and small changes you make today are compounded over time and for better or worse, affect how much easier or more difficult it will be for you when the time is right to buy.
- You provide info about you income, debt, assets and such.
- You provide personal details and authorization to pull your credit history/score.
Your lender will be able to tell you how much you can borrow based on the monthly payment they believe you can afford. The monthly payment of course is calculated using current interest rates, amount borrowed and how many years the loan is paid back over. (Typically 30 or 15, but many other options exist.)
Using the amount you are comfortable borrowing (which might be less than the amount you are qualified to borrow) and the down payment amount, you and your Realtor can determine the price range of homes you should be targeting.
Need a referral to a great lender or two? I can help.
Ok, last thing for today…
Your interest rate is influenced by your credit score and your down payment amount. I’ll address both of these things in posts next week.