Not sure what price range you should explore? Do you fear that your house payments may be too high or that you might not be able to afford the down payment?
Determine your price range from the start by getting pre-approved.* This step will help you understand how much of a home you can afford and will show how you can save money by maximizing your financing situation. Pre-approval* also gives you an advantage over other buyers who aren’t pre-approved* if you are competing for the same house.
The Pre-Approval* Process
To get pre-approved*, you need to contact a lender. They will ask you for some basic information and will access your credit report.
Our partner, Ruhl Mortgage, makes this first step easy. You can start the online process here or call Ruhl Mortgage directly at 563-441-1862 or toll free 866-441-1862. It takes about two minutes to complete the online application, and you will be contacted within one business day. There is no obligation.
Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding your credit, debt, work history, down payment and residential history.
We recommend meeting directly with a loan officer in the process, because it is the best way to get your questions answered. You can also review your current income, discuss your monthly expenses and how to budget effectively for your new mortgage payment. Sitting with a loan officer allows you to ask questions.
Once your lender gathers initial information, and runs your credit report, then they will provide you with a pre-approval letter. A pre-approval letter should state that the lender has reviewed the buyer’s credit report, income requirements and cash to close and pre-approves the buyer for the loan, subject to an acceptable appraisal of the property.
The amount that you are qualified to borrow is based on the ‘4Cs’ according to Freddie Mac:
- Capacity: Your current and future ability to make your payments
- Capital or cash reserves: The money, savings and investments you have that can be sold quickly for cash
- Collateral: The home, or type of home, that you would like to purchase
- Credit: Your history of paying bills and other debts on time
*Pre-approval is conditional. Contact your loan officer with any questions.
Illinois Residential Mortgage Licensee MB.6760937 | Iowa #:2012-0110 | Wisconsin #:935629BA
