When You’re Planning to Buy
There many things to consider when you are properly planning to buy a house, but two of the most important questions are: what can you afford, and are you buying with someone else? We have provided a simple mortgage tool that can help you figure out your potential mortgage payments compared to the purchase price of your new home. Please do not forget to figure in property taxes, home owners insurance, utilities, other household bills and home maintenance to the equation so that you get an accurate idea of what your costs will be.
There can be many uses for having a co-signer. They can range from obtaining a loan with a person that you are not married to, to parents helping their kids get a head start on home ownership in college. Adding a co-signer to a loan application can also increase the overall strength of the application and may be some applicants only option. Remember that if the mortgage is co-signed with you and another person, both parties are equally responsible for the entire house payment, even if somebody is labeled as the “borrower” and the other labeled as the “co-borrower”. If your co-signer is your “significant other” the risks are far less than the option of buying a house with a friend.
It is extremely wise to incorporate your home in your overall financial plan. Consulting a certified financial planner may be extremely beneficial in preparing for the future and making informed decisions about your financial future.
Pre-Qualification vs. Pre-Approval
The difference between mortgage pre-qualification and pre-approval can be confusing to a lot of people which can complicate the process of home buying. The pre-qualification process is simply providing your mortgage professional with the necessary required documentation and information they need to obtain a loan on your behalf. A pre-approval is obtained after your mortgage professional obtains all your documentation, has translated them into an electronic file and successfully obtained an “automated underwriting approval”. Once all of these are met you have obtained your loan pre-approval.
It is recommended that buyers get their loan pre-approved before they start looking at homes to buy so that they know what price range they should be looking at.
Looking for information about Colorado mortgages & real estate? ColoradoHomesIQ.com specializes in the Colorado Real Estate Market and we're here to help. Contact us today for a free consultation on your real estate needs.