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Know before you go.

How do I know what I’m approved for when buying a property?

To find out what you're approved for when buying a property, you'll typically need to go through pre-approval with a lender. We can help you connect with a lender that fits with your budget and get the rate you need.

What to Do If You’re Not Approved for as Much as You’d Like:

  • Improve your credit score by paying down debt and ensuring timely payments.

  • Increase your income or reduce your debt-to-income (DTI) ratio.

  • Save for a larger down payment to reduce the loan amount needed.

Would you like help calculating your estimated loan amount based on your income and debts? We can help!

Getting ready can be stressful. Heres some steps you can take before speaking to an agent.

  1. Check Your Credit Report and Score
    Lenders will use your credit score to assess your reliability in repaying a loan. A higher score may qualify you for better interest rates and higher loan amounts.

  2. Gather Financial Documents
    You'll need to provide proof of income, assets, and debt. Common documents include:

    • Pay stubs or proof of income

    • Tax returns (usually the past two years)

    • Bank statements

    • Information on current debts (e.g., credit cards, car loans)

  3. Contact a Lender for Pre-Approval
    Pre-approval means a lender reviews your financial situation and gives you a conditional approval amount. You'll receive a pre-approval letter stating the loan amount you're qualified for, which is helpful when making offers on properties.

  4. Understand Loan Terms and Interest Rates
    Pre-approval isn't just about the loan amount; it's also about understanding the interest rate and type of loan (fixed or adjustable rate) you're eligible for.

  5. Know Your Down Payment Requirement
    Depending on the loan type, lenders typically require 3% to 20% of the property price as a down payment.

  6. Factor in Other Costs
    Pre-approval focuses on the loan, but you should also account for:

    • Closing costs (2% to 5% of the property price)

    • Property taxes

    • Homeowners insurance

    • HOA fees (if applicable)

  7. Pre-Approval vs. Pre-Qualification

    • Pre-Qualification: A rough estimate based on self-reported information (less reliable).

    • Pre-Approval: A more in-depth process that involves verification of your financials and is taken seriously by sellers.