Get Qualified in Kansas City or Your Hometown

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It is most frustrating to find the perfect place, negotiate an offer everybody’s happy with and not qualify for the needed financing. The best way to avoid frustration is to qualify for a mortgage through a lender before you begin to look at houses.

Use a lender

Qualification through a lender doesn’t have to commit you to finance your home through that same lender. It is simply a chance for the lending company to market its services. If you want, you can continue to shop for the best mortgage deal while you’re house hunting. Your real estate agent can provide you the names of reputable lenders and set up a qualification
meeting.

After you’re qualified, it’s worth moving forward with the loan application process as early in your house hunting as possible. The process can be lengthy, with lenders requesting highly detailed information about your debts, assets and credit history. By starting early, everything can be in place when you find the right home.

Sellers know you’re serious  

 In addition to clearly letting you know how much home you can afford, qualifying shows sellers know how serious you are. One of the first concerns a seller or listing agent has when an offer is submitted is: “Is the buyer qualified?”

When it’s a seller’s market with multiple offers and quick sales, qualification through a lender is vital. And regardless of market conditions, qualification always increases a buyer’s standing in comparison to buyers who aren’t qualified. Sellers don’t like having a property tied up in negotiations – only to have the transaction disintegrate in the 11th hour because the buyers don’t qualify for the necessary financing.

Get qualified

If you’re not ready to talk to an agent or lender, you can qualify yourself using the same basic formulas used by the mortgage industry. This will give you a good idea of your price range. But when it’s time for serious shopping, it’s worth knowing exactly what a lender thinks. And it’s worth confirming that your credit history doesn’t hold any surprises. An experienced real estate agent can help you through this process.

How much do I Need

There is no strict formula used by all lenders to determine a home loan amount, but a good working rule of thumb is that you can afford a home equal in price to three times your gross annual income. This formula, of course, needs to be adjusted to a number of factors:

•Amount of available cash for a downpayment.

•Closing costs and cash reserves required by the lender

•Your outstanding debts (your total debt to income ratio should be under 40 percent)

•Your credit history

•The type of mortgage you select

Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) X106 or 913-339-0615 to provide accurate up to date information about the marketplace email to: tfarrell@remax.net or visit www.kansascityerealestate.com