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Determining how much you can afford before you begin your home search will save you valuable time in finding the right home in the right neighborhood.
Prequlaification and Preapproval:
Prequalifying for a mortgage generally
helps you determine how much house you can afford. It's
a good way to know what price range you should be looking in. Most
lenders require that your monthly mortgage payment, including principal,
interest, taxes and insurance, range between 30 and 40 percent of
your gross monthly income. Remember, becoming prequalified
does not necessarily mean that you will be approved for a loan of
that amount.
Preapproval from your lender means that you have provided them with the necessary paperwork, and they have approved your actual loan amount. Having been preapproved for a home loan will put you in a much better negotiating position, because the seller knows that you are able to obtain your loan to purchase their home.
Financing:
- Most loans require a down payment of anywhere from 5 to 20 percent of the home price.
- 25 percent down payment or more may qualify you for special mortgage programs and lower interest rates.
Information you will need for your loan application:
- Proof of identity, including Social Security number
- Address for the past two years
- Employer's names and addresses for the past two years
- Verification of income (current pay stub or W2 forms from the past two years)
- Bank accounts (names, addresses, account numbers, etc.)
- Loans (including monthly payments)
- Other monthly debt (credit card payments, child support, etc.)
- Amount of funds available for down payment and closing costs
- Estimated length of stay in your new home
I have worked with the following lenders and personally reccommend them.
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Rob McAllister
West Seattle Mortgage
5400 California Ave. S.W., Suite B
Seattle, Washington 98136
(206) 935-1625
mcallisterrob@hotmail.com
Laurie Peterson
Parrish and Associates
1216 Pine Street, Suite 101
Seattle, Washington 98101
(206) 405-2770
>www.needamortgage.com
lpeterson@needamortgage.com
Mark Everts
First Horizon
5808 Lake Washington Blvd., Suite 400
Kirkland, Washington 98033
(425) 576-2272
Connie Zinter
Phoenix Mortgage and Investment, Inc.
155 N.E. 100th St., Suite 110
P.O. Box 75973
Seattle, Washington 98125
(206) 527-2662
Patrick A. Crandall
1200 Westlake Ave. N., Suite 508
Seattle, Washington 98109
(206) 273-7313
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Home Loan Information