FINANCING Buying a home will likely be one of the largest financial transactions you will ever make. At times it may seem overwhelming and confusing. Working with a knowledgeable and professional real estate agent can help make the process much less stressful and much more enjoyable. PREQUALIFICATION VS. PREAPPROVAL Illustrated Properties affiliated Mortgage Company will prequalify you for a mortgage, which 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 38 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 our lender, which we highly recommend, means that you have provided them with the necessary paperwork, and they have approved your actual loan amount. Having preapproval 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. Having pre-aproval has several additional benefits: Allows you to concentrate on finding the perfect home. It can give you an advantage in competitive bidding ("Bidding War"). Once you go to contract on your new home your loan will close faster and easier, getting you in your dream home that much sooner. FINANCING Selecting the best financing package available is as important as finding a home that meets your needs. Most loans require a down payment of anywhere from 5 to 20 percent of the home price. Specialty programs are often available with substantially lower down payments. Information you will need to start your loan application: Verification of income (current pay stub or W2 forms from the past two years) Bank and other asset statements (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.

BUYING A HOME How Your Agent Works For You Steps in the Buying Process Financing We can Help You Buy Any Home Coordinating the Closing Frequently Asked Questions Terms

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