If you are in the process of purchasing a home one of the first steps you should take is to find out how much home you can afford. You should do this before you get serious about looking at houses. You may have heard the term "pre-approval". This is what a lender will provide to you in writing to let you know how much of a mortgage you can afford, and therefore what price home would be the maximum. The pre-approval is good for 3-6 months so long as your economic situation has not changed and the interest rates have not moved up substantially. Why get pre-approved? Knowing what you can qualify for will save you the time of looking at homes that you would not qualify for. If there are any credit issues you will have plenty of time to get them corrected. If you are pre-approved you are like a "cash" buyer which will benefit you in the event of a multiple offer situation.

What is required to get pre-approved? The lender will look at 4 areas to determine what you can afford. 1. Yearly income 2. Long term debt, including credit cards, car loans, student loans, etc. 3. Savings for down payment.  4. Your credit score.

I have a mortgage calculator at http://www.rickwright1.com/r_mortgage-calculator_qualifier.asp

If you need a referral to a good local lender just give me a call. 614-766-5330 x191