Speak with a mortgage lender and apply for a home loan. The lender will take into account your debt and income, and determine the maximum amount they will be able to loan you.
Pre-qualification and pre-approval both refer to a letter from your mortgage lender that specifies the amount of money they’re willing to lend to you, based on certain assumptions. These letters provide useful when negotiating an offer to purchase a home, but are not guaranteed loan offers. Some people opt to wait to obtain a pre-approval letter until they are ready to begin shopping seriously for a home. However, getting pre-approved earlier in the process can be a good way to spot potential issues with your credit in time to correct them.
It is a Buyer’s responsibility to pay for closing costs related to the sale. However, the Seller may be willing to help cover some or even all of those costs depending on certain factors within your offer and current market conditions.
Appraisal, Home Inspection, Earnest Money, and Property Survey. These are considered up front or prepaid expenses. The Appraisal determines the value of the home. Home Inspection checks for any defects or repairs to be aware of. Your Earnest Money is the deposit on the home and your acknowledgement of intent to work in good faith to purchase the home. The Survey provides a map of the property boundaries to know where your property starts and stops.
Most loans consist of 4 factors: Principal- The amount you borrowed from the lender. Interest- The amount you pay to the lender for the money you borrowed. Hazard Insurance- A monthly amount to insure the property against loss such as theft, fire, smoke and other hazards required by most lenders. Property Taxes- The annual taxes assessed by county/city on your property, divided by the number of mortgage payments you make in a year.