Qualify For A Mortgage

Written by Tara Peris
Bookmark and Share

So you've found your dream home and you want to know if you qualify for a mortgage. There are a number of ways to approach the process, and it helps to draw on multiple strategies if you're serious about buying a home. Harness your resources and you stand the best chance of meeting with success.

Most real estate agents will tell you that in this competitive housing market, your best bet for finding a home is to come to the table with a pre-approved loan. This makes sense given that it allows sellers to evaluate potential bids with a better understanding of each buyer's financial standing. However, if you're new to the game, securing a mortgage can be a real struggle.

Basic Considerations

To some extent, qualifying for a mortgage depends on the cost of the home you wish to buy. It helps to begin by looking around and getting a sense of the properties in which you are interested. Then, you can use an online mortgage calculator to determine what is actually in reach. These calculators will consider factors such as annual income, outstanding debt, and current interest rates to tell you what kind of a mortgage you might be able to secure.

Critically, you do not want to rely solely on a mortgage calculator when making decisions. Chances are, you can afford much more than you think, so be sure to talk to a few different lenders and get their input as well. A calculator can keep expectations in check, but it should not be your only device for determining whether you qualify for a mortgage.

Bookmark and Share