To find out what you can afford, you must consult with a loan officer. 

A loan officer reviews your financial information and lets you know how much house you can afford based on current interest rates and your income and expenses. This is usually a free service, as the loan officer hopes that you will use their company to fund your purchase.

The lender will then issue you a pre-qualification letter  
(or a pre-approval if they ran your credit).
This is the letter that the REALTOR asks you for, before showing you properties.

One reason for the popularity of 2 and 3 family homes these days, is that most lenders will pre-approve you for a larger loan based upon the expected rental income. This is an option if a single family is unaffordable at the time.

Let's review:

  • unless you have all the money to purchase, you will be using a lending institution or bank.

  • at some point, this lender will require personal information from you. they will want to see:
                - your bank statements ( 3 months)
                - your pay stubs (2 years)
                - your tax returns (2-3 years)
                - cancelled rent checks (1 year)
                - monthly debts/ payments (car, school loans)

 


 


sponsored by
Realtor Phil Terban
Century 21 Citiwide
88 Broadway Malden, MA 02148

 

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