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How Much Can I Afford?
Whether buying a house, condo, or townhouse, this is the largest purchase most people will make in their life. Finding out how much you can afford involves several factors including: your credit history, salary, what you are buying and your current debt. Before you buy, the first step in the home buying process is to find out which type of loan is right for you. A mortgage consultant can help determine what price range you can comfortably afford and what closing costs you can anticipate in purchasing your new home.
Pre-qualification Vs. Pre-approval.
After you have found you?ve found a home you want to make your own, you?ll be ready to make an offer to purchase it. You will need to be able to prove to the seller you are a qualified buyer. This is done by providing a letter from your mortgage lender showing that are qualified to purchase the property.
Pre-qualification - Your lender will be able to tell you how much of a loan you can anticipate qualifying for. The pre-qualification is based on the information regarding your income and debt you provide your lender. When its time to buy, you will still need to apply for a loan.
Pre-approval ? Unlike a pre-qualification, pre-approval is a loan commitment from your lender after you officially apply for a loan. It will give you the greatest negotiation power in buying your new home, since the seller knows you are qualified and isn?t risking have the sale fall through because you couldn?t get a loan.
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