Think You Can’t
Afford to Buy a Home?
If you are currently renting, have been with your employer
for at least two years and have a credit score in the mid-to-high 600 range it
is likely that you can qualify for FHA or Conventional financing.
Tired of renting but you think you can’t afford to buy a
home? Review the scenario below and see why you can’t afford NOT to buy a home.
The real estate market is rebounding and purchasing a home
is a great investment that provides specific financial advantages, including
equity buildup, potential increase in value, and tax benefits. So, again, ask
yourself if you can really afford to keep renting.
After you have made the decision to purchase the next steps are
to get pre-approved for a mortgage.
Pre-Approval is
an Advantage
Pre-qualification
is a procedure where you get an opinion from a mortgage officer about how much
money you can qualify for. This is
usually based on a few questions provided by the buyer but nothing has been
verified by the lender. This process
doesn’t have the same advantages of a pre-approval.
Pre-approval
requires a complete application with credit reports and verifications. The Mortgage Company will issue a commitment
subject to a specific interest rate and points and a satisfactory appraisal
when the property is identified.
Time limits are usually placed on pre-approval
commitments. It is recommended to be
ready to look at homes and make a decision after you receive your pre-approval
commitment.
The advantages of being pre-approved are:
Viewing homes that meet your search criteria in the correct
range of your loan amount.
- Avoiding disappointment in deciding on a home that you can afford.
- Saving money with a seller who is confident about taking their home off the market with buyers who have a definite loan commitment. It could mean the difference between a seller selecting your offer vs. another.
- Closing more quickly: the lengthiest procedure in the home buying process is usually the mortgage approval.
To search for a home in DC, Maryland or Virginia simply complete the form below.
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