The first step in purchasing a home is to figure out how much you can afford.
The best, and easiest, way to determine how much you can afford to pay for a home is to pre-qualify for a mortgage.
Step 1: Figure Out How Much You Can Afford
The U.S. Department of Housing and Urban Development published a list of 9 steps to buying a home. The first step in buying a home is to figure out how much you can afford.
- Figure out how much you can afford
- Know your rights
- Shop for a loan
- Learn about homebuying programs
- Shop for a home
- Make an offer
- Get a home inspection
- Shop for homeowners insurance
- Sign papers
Pre-Qualify for a Mortgage
What’s the easiest way to figure out how much you can afford to pay for a home? Pre-qualify for a mortgage.
A mortgage pre-qualification is an estimate of how much you can afford to borrow for a home based on your financial situation.
Jill Kransy, in Business Insider, emphasizes that serious homebuyers start with pre-qualifying for a mortgage:
For serious homebuyers, the pre-qualification process represents an important first-step prospective buyers tend to overlook.
There are obvious advantages to pre-qualifying for a home loan:
- You know how much you can afford to pay for a home.
- You don’t waste time looking at homes out of your price range.
- Realtors and sellers take you more serious, because they know you are a serious buyer.
How Do I Pre-Qualify for a Mortgage?
It’s easy to pre-qualify for a mortgage. We’ll briefly review your financial situation, including your credit score and income to debt ratio, to determine how much you can afford to borrow to purchase a home.
If you would to start the process of pre-qualifying for a home, you can fill out a Quick Application online. Or, you can call us at 866-910-8020.