Are you ready to purchase a new home? The first thing you should do to secure your efforts is to get pre-approval from a lender. This will put you into a stronger position to purchase, negotiate a better price and will ultimately give you an advantage in a competitive market.

• DOWNPAYMENT
• INCOME / CREDIT/ ASSETS
• CLOSING COSTS

Different lenders have a variety of loan options. Depending on your income, credit, and assets you can qualify for a loan with a down payment ranging from 3-20%. Any down payment under 20% requires Private Mortgage Insurance (PMI). This protects the lender in case of default by the borrower.

Your mortgage payment to the lender includes the following items: The principle on the loan (P) / The interest on the loan (I) / Property taxes (T) / Homeowner’s insurance (I) . Your total monthly PITI and all debts (from installments to revolving charge accounts) should range between 36-45% of your gross monthly income.

You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at closing unless you are able to include them in your financing. Typically, total closing costs will range between 2-3% of your mortgage loan.