Pre-qualifying for a loan makes you an appealing buyer in the eyes of the seller.

Pre-qualification approves you for up to a certain mortgage amount, even before you look at your first home. Once you do start looking, you won't waste time looking at homes you won't be qualified for-and you'll be in a strong position to make an offer as soon as you find something you like.

Selecting the best financing package available is as important as finding a home that meets your needs.

There are three factors to consider in determining how much you can afford:

1. Down payment
   Most loans require a down payment of at least 5% of the home price, but there are also several loan programs available that allow you to put down less, or finance 100% of the sales price. Speak with a qualified mortgage lender to find out which loan program best fits your needs. If you haven't already been pre-approved, please go to my home page and click on "click here to get pre-approved".

2. Ability to qualify for a mortgage
   Most lenders require that your monthly mortgage payment, including principal, interest, taxes and insurance, should not exceed 30 percent of your gross monthly income. They also expect your total installment debt (regular scheduled payments of 10 months or longer debt-car loans, credit card balances, etc.), including the proposed monthly mortgage payment on your new loan, not to exceed 40 percent of your gross monthly income.

   In addition to your gross monthly income, lenders review your employment history, stability, and potential for increasing your income. They also evaluate any additional income, such as bonuses, commissions and child support.

   They will request a credit report to verify your debt repayment, outstanding debt, and available credit. They will calculate your assets, including checking and savings account balances, CDs, stocks and bonds.

   Avoiding any late payments on credit accounts, and limiting your credit purchases, helps keep your credit report in good standing. If you have items on your credit report that could negatively influence your ability to secure a mortgage, be prepared to explain each situation in writing. You should also consider delaying major purchases until after you've moved into your new home.
    
   

3. Closing costs
   Closing costs typically range between 2 and 5 percent of your loan amount. These fees are due in cash at the time of closing. Closing costs will be broken down and provided to you via a "Good Faith Estimate".

   A Pre-qualification is essential prior to shopping for a home.

   Taking the time to pre-qualify for a mortgage before you begin your home search will put you in a much better negotiating position: your pre-qualification assures the seller that the transaction will not be delayed while you secure financing.

   If you haven't already obtained your pre-approval letter, please go to my home page and click on "click here to get pre-approved", which will take you the website of Ed Dean with George Mason Mortgage.

   If you would like to learn more about financing options immediately, please contact me.