If you are like most people, you know that it would be beneficial to just have
money handed over your way. You work hard at what you do and are financially
stable. You know that it is time for you to move into a new place and want to
make sure that you have the best opportunities available for you. The first
investigation to make in order to step forward is through a loan
pre-qualification.
Loan pre-qualifications will decide if you have the financial capacity to invest
in real estate in the beginning. By having the right pre-qualification, you can
be guaranteed a specific amount of money and will have the ability to move into
the home of your dreams.
The first thing that is established with loan pre-qualification is your annual
income. By finding this, it will allow for lenders to know how much you will be
able to put into a loan in relation to other expenses that you may have. Things
such as personal debt and car loans, as well as credit card expenses will be
calculated in this figure to show the first step to finding the right loan.
After these particular points have been added up, the time frame in which you
will pay your loans will be factored in. This will give the companies an idea of
how much you can pay and how this will relate to the debt and finances that you
have coming in and out of your pocket. This will be defined by using formulas
that will relate how much money you are making in relation to how much you can
pay to balance out your loan. Usually, pre-qualification formulas will divide
things by factoring in ratios for standards of living.
If you want to check that you have the correct loan, then becoming pre-qualified
is the first step that you will need to take. This will enable you to move
forward with what you want and need for your loan. By knowing what to expect,
you can prepare for the process of getting a loan and can move into the property
that you want.
This work is protected under copyright and may not be published in other works without express written permission
Return to Brokerforyou's real estate articles