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Step3:
TalktoaQualifiedLender
.
Afteryou'vemadeapreliminaryreviewofyour
finances,you'llwanttotalktoaqualifiedlender.
Amortgageprofessionalwillnotonlybeableto
giveyouinformationonthebestratesandterms
availableinthecurrentmarket,butheorshecan
alsoexplaintoyouwhatoptionsyouhavegiven
youruniquefinancialsituation.
.
You'llalsowanttotalktothelendertoseeifyou
canbepre-approvedorpre-qualified.
.
PreApprovalvs.PreQualification
Pre-Qualificationisonlyaloanagent'sopinion
thatyou'llbeabletoobtainfinancing.No
verificationsaremade,soformalapprovalisnot
issued.
.
Pre-Approvalmeansyourloanapplicationhas
beentakenthrougharigorousprocedure.Pre-
approvalsavesyouthetimeoflookingathouses
youcan'tafford.
HectorGuadarrama
Realtor/Agent,License#:661547
EXITREITZREALTYGROUP
415E.SouthlakeBlvd
Southlake,TX76092
Cell:(915)9964940
Office:(817)416-9160
hguadarram@gmail.com
www.EXITREITZREALTYGROUP.COM
Brokerage,IndependentlyOwnedandOperated.Notintended
tosolicitindividualsorpropertyalreadyundercontract.
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
$2,750
$3,000
$4,167
$5,000
$5,833
$6,667
$7,500
$8,333
$9,167
$10,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
MaximumHouse
Payment
GrossMonthly
Income
AnnualSalary
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
$275,000
$300,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
AnnualSalaryMaximumHomeValue
Keepinmindthattheseareguidelines.Thereare
manyotherfactorsthatdeterminehowmuch
homeyoucanafford.
Method2:
Ahousepaymentshouldbenomorethan25%of
yourgrossmonthlyincome(beforetaxesand
deductions)
Method1:
Thepriceofyourhomeshouldn'tbeanymore
than2.5timesyourannualsalary.
Step1:
Makearoughestimateofhowmuchhome
youcanaffordbasedonyourincome.
.
Herearetwomethodsthatwillgiveyouan
approximatestartingpointforhowmuchhome
youcanafford.
Thethreestepsdiscussedinthis
brochurewillhelpyoureviewhome
financingandgetyoupreparedto
speakindetailwithalender.
Howmuchhome
canIafford?
.
Mosthomebuyersfindthattheyneed
tofinanceatleastpartoftheirhome
purchase.
.
Therefore,thefirststageinfindingthe
righthomeistoreviewyourpersonal
financialsituationandmakean
informedestimateofyourtrue
purchasingpower.
Step2:
Takeacloselookatyourcreditreport.
.
YourCreditHistoryisoneoftheprincipal
measuresusedbyalendertodetermineyour
interestrate.Thebetteryourcredit,thebetter
lendingtermsyourbankorlendinginstitution
willbeabletoofferyou.
Thethreemaincreditreportagenciesare:
.
Equifax
www.equifax.com
1.888.766.0008
.
TransUnion
www.transunion.com
1.800.888.4213
.
Experian
www.experian.com
1.888.397.3742
Rememberthatthereareseveralfactorsthat
affectyourcreditreportincludingyourpayment
history,yourcurrentratioofdebttoincomeand
signsofresponsibilityandstability.Andsincenot
allcreditorsreporttoallthreeagencies,it'sbest
toorderareportfromallthreeinstitutions.
.
Ifthereareanydiscrepanciesonyourcredit
report,it'simportantthatyoucontacttherating
agenciesandhavethoserecordscorrected.
*TheaveragecreditscoreintheUnitedStateis678.

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How much home can I afford?