Good Home-Buying Strategies, Try Pre-Qualifying for a Mortgage

There are many good home buying strategies, and one of them is to try pre-qualifying for a mortgage loan before you even begin your home search. By pre-qualifying, you are actually going to know how much home you can afford instead of having to guess.

While it is true that there are some mortgage calculators that will now give you a good idea as to how much home you can afford, it is still an estimate rather than the more solid numbers you can get from mortgage lenders. If you do not know how much home you can afford, you might go looking at real estate and fall in love with a home that you simply cannot afford.

This is simply a waste of money, time and energy, all of which can be better spent if you actually know the homes that you should be looking at. The idea behind pre-qualifying is having a number, and then looking at homes in the price range that you have been given.

Of course, do not simply go to one lender and try to pre-qualify with that lender, even if it is the place where you do all of your other financial transactions. You need to shop around, just as you would shop around for anything else and try to find the best terms available.

When you try to pre-qualify, you are going to be the source of the information for the pre-qualification process, so be as honest, open and accurate as you can. The better the information that you provide, the more accurate the numbers will be.

You are going to be asked about sources of income that can be verified, how much money you owe, the monthly payments that you make, and your credit history, especially if you have any negative marks. This is why it is essential for you to be forthcoming during this process since your credit history and credit score will play a really big role with regard to the terms that a mortgage lender will offer you.

If you are not open and accurate during the process, when you come back for mortgage approval, the mortgage lender will delve more deeply into your credit history, and everything will be turned up. This will change the numbers, and you may once again end up not being able to afford a home that you have fallen in love with.

As a general rule, you should keep in mind that you should be able to afford a home that is three times your gross annual income with a down payment of 20%. If you and your spouse have a verifiable income of $100,000, that means that you can look for homes in the $300,000 range, and that you should have $60,000 to go toward your down payment.

If you start playing with those figures, such as going for a home that is 5 or more times your gross annual income or putting down 5% or less, you may find out later on that you will have problems keeping up with your mortgage payments. A home is a great investment, but you need to be savvy about your investment, especially if you are planning to keep your home for the long term.

There is some great real estate for sale and you can look at it by going to Scottsdale Country Club Scenic Homes, Scottsdale Country Club Rental Properties and Scottsdale Country Club Homes with Pools.