How to pre-qualify

The traditional 28/36 rule. This means that your house payment including taxes, insurance, homeowner’s dues should not exceed 28% of your gross monthly income & all of your monthly liabilities on your credit report should not exceed 36% of your gross monthly pay

Your ratios are one variable to determine how much you can borrow. Some lenders approves as high as 60% of your gross income. What you really need to ask yourself is “how much can I afford to pay each month?” then call us to find out exactly what programs and rates exist for your particular situation.

Here is a simple rule of thumb: just remember number 2 & 3,

Monthly payment: monthly income devided by 2

Home price: gross annual income multiply by 3


Pre-qualification or Mortgage Pre-approval?

Sellers are looking for some evidence that home buyers are qualified to buy before they accept the offer.
A pre-qualifications implies that you have spoken with a lender or broker and, based on the information you have provided, are qualified to borrow “X” amount of money. A mortgage pre-qualification letter is a good start but often comes with some vague language and may not build confidence in the seller’s or real estate agent’s mind. A mortgage pre-approval takes the process to a new level. Mortgage pre-approval letters indicate that the borrower has met with broker, the borrower has been approved for a mortgage with limited list of pending items ( appraisal and final underwriting review). Some homeowners may not understand the difference but, most real estate agents do.