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By Jakob Jelling
You have finally found the home of your dreams. You have searched all over and
are ready to purchase it. Before you even make your offer you should seek out
the financing first. In some cases, it is easier to have a pre-approval in
hand before making any financial commitment through a contract. Why get your
hopes up after you purchase the home when you can buy with assurance and wait
by the settlement table. Before you can buy anything, you will need to get
accepted by a reputable lender. There is much you will need to know, as this
will be the largest purchase you will ever make. You will need to fill out a
mortgage application first.
As with any mortgage application, you will need to provide the necessary
information to the lender so they can weigh the option to grant you the loan.
This information is based upon your financial picture. It consists of your
social security number, date of birth, and where you have worked for the past
3 years. This information will give the lender a good picture about your
spending habits through a credit score. Depending on the score itself, the
lender will make a financial decision to grant or deny your request. You may
also have to explain certain circumstances in your life such as a job loss or
credit rating should they not be up to par.
Upon completing the mortgage application review, you will be given an amount
in which you can afford. Usually the sales price of the home is based upon 3½
times your annual income. It is also equivalent to the percentage of debt to
income ration determined by FHA (Federal Housing Authority). Should you meet
these guidelines you will be given a green light to go and look for a house
in this range. You may be able to afford more should you have a sizeable
deposit. There are also programs that you can use to get into a house with
only 3% down. Some lenders ask that you fill out the home loan application in
person rather than online so that they can answer any questions during the
process.
By Jakob Jelling
http://www.cashbazar.com (http://www.cashbazar.com)
Jakob Jelling is the founder of http://www.cashbazar.com (http://www.cashbazar.
com). Visit his website for the latest on personal finance, debt elimination,
budgeting, credit cards and real estate.
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