Mortgage Pre-Qualification and Pre-Approval Boston MA

In buying a house in Boston, it is good to know your borrowing power, in other words, how expensive of a house you can afford. There are two ways to figure out what your borrowing power is: pre-qualification and pre-approval. Learn more about these processes and find out what you should know about home buying before you get yourself into it.

One Mortgage Network Inc
(800) 736-1642
20 Concord Sq Apt 1
Boston, MA
Db Mortgage Services LLC
(617) 523-0066
1 Beacon Street - 14Th Floor
Boston, MA
Deutsche Bank Berkshire Mortgage Inc
(617) 523-0066
1 Beacon St Fl 14
Boston, MA
Massachusetts Hsg Fin Agency
(617) 854-1000
One Beacon Street
Boston, MA
First Eastern Mortgage Corp
(617) 248-0901
19 School Street
Boston, MA
Bank Of America Na Charlotte
(617) 346-3486
1 Federal St Fl 5
Boston, MA
Countrywide Home Loans Inc
(617) 426-5060
1313 Washington St.
Boston, MA
First Trade Union Savings Bank Fsb
(617) 482-4000
10 Drydock Avenue
Boston, MA
Pride Mortgage Llp
(617) 867-0888
1387 Washington St
Boston, MA
Capital Crossing Bank
(617) 880-1010
101 Summer Street
Boston, MA

Mortgage Pre-Qualification and Pre-Approval

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In buying a house, it is good to know your borrowing power, in other words, how expensive of a house you can afford.

There are two ways to figure out what your borrowing power is: pre-qualification and pre-approval. In order for you to be pre-qualified, you simply give your lender income, debt, and down payment information and they tell you what you can afford. This can even be done shortly over the phone without obligation to use that lender.

The pre-approval process is much more detailed because it gives you a specific dollar amount and is most often that last piece that must be placed into the puzzle before you can buy the home you want. Still the pre-approval process can be done overnight if the necessary paperworl is in place. Be careful of hot real estate because if you and another buyer are vying for the same house and they have been pre-approved and you have not, well, they win.

You do not have to use the same lender who pre-approved you to obtain a loan, but you will have to submit verification to the lender that you have been pre-approved.

You need to have the following ready when you go to get pre-approved:

  • Pay stubs and W2s from the past two years as proof of income
  • Those who are self-employed need tax returns from the past two years
  • Divorce papers
  • Loans on your current home
  • Be aware that some lenders have a fee and that many will ask you to pay for the credit report fee

    Remember that if you use money as a gift from your parents or other relatives, you need to either leave it in the bank for two months or retrieve a letter stating that you were given money as a gift and not as a loan.

    Taking the time to do the pre-qualification and pre-approval processes right will help you in obtaining the home you want.

    Do you want to own or rent?

    If you live in an apartment and decide to replace the carpet with tile, you put your security deposit in jeopardy, but if you do that in your own house, then that is just a nice change.

    There are definite reasons to rent instead of buying a house:
  • If you plan to move within the foreseeable future
  • If you are considering job changes that might force you to move
  • To check out a neighborhood before committing to it
  • Bad credit can be fixed to an extent with on-time rental payments
  • If your income might change in the near future, this can vary your borrowing power
  • When renting, you do not have to pay for maintenance
  • Sometimes the landlord pays for utilities
  • You do not have to worry about the fragile real estate market, in that if the market goes down, then you do not lose money, however you also do not gain money if the market is doing well
  • In many cases the cost of renting is less than the cost of buying
    The problem with renting, however, is that you have no control over rent changes and this makes long-term budgeting more difficult.

    There are many positives to buying a home:
  • You pay to own your home. In renting you are not paying FOR anything.
  • Uncle Sam gives you tax deductions on your mortgage interest, as well as you property taxes.
  • You get to style your home to your taste. You can switch out tile for carpet or paint your bedroom a funky color because your home is just that, yours.
  • You have the right to choose how maintenance is handled in your home.

    Whether renting or owning is cheaper depends on your market. Take into consideration the rare option of renting to own. It works as follows:

    It is the same as a lease with one extra step. It usually takes one to two years for you to own your home, and you must pay a one time option consideration fee. All negotiations should be applied to the purchase of a home.

    There are many things to consider when determining whether buying or renting is best for you, so make sure you take the time to understand both sides. Once you are well-informed, you can make a better decision.

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