The price you pay for a home is made up of your down payment and the amount you borrow (mortgage).  The maximum amount of your mortgage will be determined by your lender and will be based on many factors including your credit history (FICO score) the amount of your down payment, work history, overall financial condition, and the appraised value of the home you wish to purchase.

As a very general rule, you can usually borrow up to 2.5 to 3.5 times your gross annual income, but this varies widely based on the above factors.  Adding your anticipated down payment to the mortgage amount will give you a potential purchase price.

When you submit an offer to purchase a home, you will most likely make it subject to obtaining your desired financing within 21 days.  Your negotiating ability will be significantly enhanced if you provide the seller with evidence that you have been pre-qualified or pre-approved for the mortgage. Many sellers won’t accept an offer without this.

Pre-qualification can be easily accomplished in a ten-minute phone call with a lender.  Pre-approval typically requires signing an application and providing some documentation and an application fee.  We are happy to arrange for you to contact a reputable lender for either of these valuable services.

Regarding your choice of lenders, your CENTURY 21 Kreuser and Seiler agent will be happy to “shop” lenders for you, so you can be assured of the best rate, terms and service.  It makes no difference to us what lender you choose as long as you end up happy!  We strongly urge you to use CENTURY 21 Mortgage or a recommended local lender who has to do a good job in order to get future business from us.  Our clients’ experiences with internet and out-of-area lenders offering rates that are too good to be true have been just that. (Seated at the closing table is not a good time to find out your lender is not reliable!)

To determine how much your monthly payment will be for various mortgage amounts, terms, and interest rates, use our mortgage calculator, an option with all our listings. And to easily get prequalified or pre-approved for a mortgage, click here.