The “Basics”
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 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
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