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Affording a home is not as easy as it used to be! With tight credit markets and banks in trouble, many banks are insisting on at least 20 to 25 percent down for Jumbo Loans (those over the FHA limits of $625,000). However, if you can get by with a "Conforming" loan (those under the $625,000 FHA "Fannie Mae/Freddie Mac" threshold) then you may be able to get a loan with as little as 3.5 percent down (owner occupied only).
There's a reason we tell our clients to get preapproved right away. It's the RIGHT WAY to buy a home in this volatile credit market. The wrong way goes something like this:
Buying without having a pre-APPROVAL from a mortgage lender is NOT smart these days. If you don't have that magic piece of paper, often you can't even submit your offer for Bank Owned or Short Sale Properties or they will "round-file" your offer (put it in the trashcan). Having a strong pre-APPROVAL puts YOU in control.
The RIGHT way to buy a home is shown here: 
By getting pre-approved FIRST, you put yourself in the Driver's Seat and know for sure that if you see one you like, you WILL be able to negotiate for it from a position of strength.
There are many rules to qualifying for either conforming or nonconforming loans, and a good mortgage broker is the best source to find out how much you really can afford. Lauren and Danielle both try to stay up with the guidelines, but the rates and the programs sometimes change by THE HOUR, so the mortgage brokers are the professionals that can tell you for sure. We have a list of good ones that we have worked with that we can wholeheartedly recommend for their honesty, customer service, and professionalism. Pick one of them and get Pre-APPROVED (not just prequalified) today. |