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 14 to 30 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 services.
Regarding your choice of lenders, your
CENTURY 21 Kreuser and Seiler, Ltd. 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 The mTeam
Group 1st Advantage, a Draper & Kramer Company (Larry Palmer
847.239.7820, Dave Holan 877.334.6526, Tammy Maranto 630. 291.1476 or a local lender
who has to do a good job in order to get future business. Our clients’
experiences with internet and out-of-area lenders offering rates that
are too good to be true have been just that.
To help you estimate your monthly
mortgage payment, a mortgage calculator is included on the full data
sheet for every listing on our website.