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How do you find out how much you are pre-approved for?

We want to save 20% of how much we can afford, but we dont want to get involved with an agent yet. 
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January 20 2013 - West Boulevard
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Answers (9)

I love that you are planning ahead. Having 20% down with a conventional loan will eliminate the high FHA MIP costs and monthly payments. To become pre-qualified, I recommend going to either a bank or direct lender with your income documentation (W-2, paystub, 1040 taxes) and a current bank statement. If you don't have a current credit report, one will usually be ran for you. It should take no more than 20 minutes and you should be able to obtain a written pre-qualification letter subject to your 20% down. Most banks can save you time and effort by scanning and emailing, but I find that face to face applications get better personalized results.  The road to homeownership sometimes has a couple of curves, but always worth the journey.

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March 12 2013

Chrissy,

 

As you begin the preapproval process keep in mind that you are technically preapproved for a monthly payment that includes principal, interest, taxes, insurance and any HOA fees if applicable. This will roughly get translated into a purchase price but if any HOA fees are involved could be a huge factor. A loose rule of thumb is that for every $1,000 change in purchase price (up or down) the monthly payment increases or decreases by $5. If you were looking at a condo with a $200 monthly HOA fee this equates to about $40,000 of the purchase price. Translation: assuming taxes were the same you could, for example, buy a condo with a monthly $200 HOA fee for $200,000 or buy a single family home for $240,000 and have the same monthly payment.

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March 12 2013
Chrissy,
 
The amount that you can qualify for is going depend on many factors.  before you speak to a lender it is important to have a gage of your credit score.  The rate that you qualify for is going to effect the actual amount your are qualified to borrow.  There is a ratio referred to as Debt to Income (DTI) this ratio calculates what you qualified for.  Have you spoken to a lender? 
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February 28 2013
Contact your local lender.  It could be from the bank you go to most or someone your real estate professional recommends. 
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January 21 2013
Call a lender to get pre qualified for a loan....the lender will tell you what you can qualify for and the amount...best of luck
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January 21 2013
Being preapproved is a very easy process.  It benefits you so you know exactly what you need for money to close as well as where you are comfortable as far as a monthly payment.  It benefits your realtor also so that they have the ability to provide proof of your preapproval which in turns gives the seller a peace of mind with the transaction.  Look around at rates, etc. but I find it very important that you find a broker who is responsive.  Returns your calls and helps you thru the process. Best of luck!
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January 20 2013
I would ask your agent for two referrals for mortage brokers or you can call you bank, it's always best to get a pre approval before searching for homes.
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January 20 2013
Try to contact at least two mortgage brokers and discuss what your pre-approval range will be given your financial background.
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January 20 2013
Profile picture for wetdawgs
You can either meet with a lender, or get a very rough estimate with some of the on-line calculators such as this one (link) on Zillow.

Zillow has a useful collection of articles that they title "Buyer's Roadmap".


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January 20 2013
 
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