Mortgage Pre-qualification And Pre-Approval Gets Results

Written by Posted On Monday, 01 February 2016 07:54

Mortgage Pre-qualification And Pre-Approval Gets Results

Many buyers apply for a loan and obtain approval before they find the home they want to buy. Why?


Pre-qualifying will help you in the following ways:
1. Generally, interest rates are locked in for a set period of time.
2. You will know in advance exactly what your payments will be on offers you choose to make.
3. You wont' waste time considering homes you cannot afford.

Pre-approval will help you in the following ways:
1. A seller may choose to make concessions if they know that your financing is secure. You are like a cash buyer, and this may make your offer more competitive.
2. You can select the best loan package without being under pressure.

How Much Home Can You Afford?

There are three key factors to consider:
1. The downpayment
2. Your ability for a mortgage
3. The closing costs associated with your transaction

Down Payment Requirements

Most loans require a down payment of 3.5% to 5.0% depending on the type and terms of the loan. If you are able to come up with a 20% to 25% down payment, you may be eligible to take advantage of special fast track programs and possible elimination mortgage insurance.

Closing Costs

You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the final settlement, unless you are able to include them in your financing. Typically, total
 closing costs will range form 2% to 5% of your mortgage loan.

Qualifying for the Mortgage

Most lenders require that your monthly payment range from 25% to 28% of your gross monthly income. Your mortgage payment to the lender includes the following items:
1. the principal on the loan (P)
2. the interest on the loan (I)
3. property taxes (T)
4. homeowners insurance (I)

Your total PITI and all debts (from installments to revolving charge accounts) should range from 33% to 38% of your gross monthly income.

These key factors determine your ability to secure a home loan:
1. credit report
2. assets
3. income
4. property value

For more information on Financing and Mortgages and Relocating to North Atlanta, Georgia click HERE.

Now that your are ready to purchase your North Atlanta home, contact your North Atlanta Luxury real estate team - The Mary Ellen Vanaken Team of Keller Williams. 5780 Windward Parkway, Suite 100, Alpharetta GA 30005

Mortgage Pre-qualification And Pre-Approval Gets Results

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Mary Ellen Vanaken

Retaining the services of The Mary Ellen Vanaken Team of North Atlanta entitle you to a network of professional individuals that are committed to helping you. Whether your goal is to buy a dream home in North Atlanta, Invest in North Atlanta Real Estate, or SELL your property in North Atlanta. The Mary Ellen Vanaken Team is a team with one common purpose – to get to the closing table.

Here are the benefits to you when deciding to work with The Mary Ellen Vanaken Team.

Mary Ellen Vanaken, Team Owner, is a seasoned professional in both Real Estate and Business. Mary Ellen has an outgoing personality and is known to be aggressive in marketing real estate. With her background in accounting and finance, her goal is to help you find the best value your money can buy.

Administrative Staff – The Mary Ellen Vanaken Team does not allow its skilled sales staff to be busy with administrative tasks.  We understand that an outstanding Real Estate Agent may not be an outstanding administrator, so we allow each to do what they do best.  This benefits you by freeing up your agent to specialize in negotiations and your admin to dot the I’s and cross the T’s during the transaction.

Your Agent – The Mary Ellen Vanaken Team is comprised of niches (real estate areas) Training, certifications, conferences and on the job experience is required for our agents who specialize in these areas:

-       Luxury Homes of North Atlanta

-       Relocation

-       Neighborhood Specialists In:

 Alpharetta, Roswell, Milton, Cumming, Johns Creek and more

The Mary Ellen Vanaken Team believes that a home is not a home because of its room dimensions or the color of the walls. It is about how you feel when you walk though the front door. And the way you can instantly envision your life unfolding there. This is about more than real estate. It is about your life and your dreams.

Mary Ellen Vanaken and her team utilizes the latest technologies, market research and business strategies to exceed your expectations. More importantly, we listen and that means we find solutions that are tailored to you. If you are looking for a real estate team who will work hard for you to sell your home or locate your new home, contact The Mary Ellen Vanaken Team.

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