How Much House Can I Afford to Buy?

If you’re a first time home buyer, you are probably wondering, how much much house can I afford to buy? In this video I’ll answer this and share how to the home loan process works…from pre-qualified to pre-approval.

Welcome back to how to buy a home in colorado springs you know recently i got an email from a first-time homebuyer and they write how much house can i afford to buy well that all depends and today i’m going to share with you what you need to know to qualify hi this is nettie mcelhaney with berkshire hathaway rocky mountain realtors in colorado springs feel free

To read the complete blog post by clicking on the link down in the comment section or you can hit the subscribe button for more information about real estate and lifestyle in the colorado springs area now be sure to watch the end because i have something that i want to share with you about this whole home mortgage loan process so let’s get started the first thing

You need to do is to get pre-qualified now a pre-qualification is getting a general feel for what you might qualify for on your home loan you’ll tell the loan officer how much money you make how much you owe how much you have saved and what you think your credit score is the loan officer will then crunch the numbers and give you a rough estimate of what you might

Qualify for it lets you get a feel of where you’re at in the process now a good mortgage broker will suggest ways that you can get your ducks in a row so that you’ll be ready in the future they might tell you to do certain things that will help you get your credit score up or they might give you an idea of how much cash you need to have for a down payment now

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A couple tips the internet is great but you really need to go to a local loan broker that way you can sit across from them and get a real understanding of what you need to do number two my second tip are your credit cards always pay them on time and your balances your balances should be low under 30 of your credit limit but not necessarily completely paid off

And number three your tenant records you should have always paid on time and no evictions because an eviction can really affect your credit score yay you’ve reached your goal your credit is now above 620 which is the minimum number for a conventional loan 700 is actually even better you’ve saved for a down payment you’ve been paying your bills on time next you

Need to get pre-approved so let’s go back and meet with that mortgage broker now this is where you’re going to give them your w-2s your tax records your bank statements and they will pull a hard credit report on you the lender gets all the real information this time from the source and they will then run your application through underwriting basically this means

That the bank agrees to underwrite your loan and congratulations you are finally ready to go look at houses why do you need to get pre-approved well when you find that home of your dreams and you make an offer on it your buyer’s agent will submit your pre-approval letter with the offer it makes your offer stronger to sellers the sellers know from looking at

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That pre-approval letter that the bank says that these people can afford to buy my house and this bank will make them alone on it some realtors won’t even show a buyer a house until they’ve been pre-approved yes it’s that big a deal they feel that looking at homes before you know what you can afford or even qualify to buy is a big waste of time and think about

It it kind of is so get pre-approved remember that thing that i said i had for you if you watched all the way to the end well what i have for you is a checklist of all the documents that your mortgage broker is going to need from you all you have to do is click the link down in the comment section and i promise i’ll email it out to you right away so please like

Share comment and subscribe i release new videos every thursday about real estate and lifestyle in the colorado springs area i hope you enjoyed watching

Transcribed from video
How Much House Can I Afford to Buy? By Nettie McElhany