What Size Loan Can I Qualify For? – New Article on LoanLove.com Provides the Answer
San Diego, CA (PRWEB) July 26, 2013 -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently posted article continues to offer information that can help borrowers, by helping to answer the question “What size loan can I qualify for?”
The Loan Love article explains: “Before you start shopping around for a home, it’s a good idea to know what your price range is going to be. A lot of future homeowners find themselves asking the same question, “What size loan can I qualify for?” For a lot of would-be homeowners, the day their mortgage broker calls and tells them the amount they’re prequalified for isn’t always a unicorns-and-rainbows kinda moment; often the amount you can qualify for may not always align with what you feel you can – or want to – spend. To avoid that crestfallen feeling of disappointment, you might want to turn to that handy-dandy friend of all potential homebuyers: the loan prequalification calculator.”
A prequalification calculator takes the borrower’s personal financial data, like their income, current monthly payment obligations, property taxes and insurance, as well as mortgage-related information including the interest rate and term of the loan they are considering. Then, through the magic of computing, it gives the borrower an estimate of the mortgage amount for which they will likely qualify for. One thing to remember, for borrowers, though is that just because they have prequalified for a certain amount does not mean that they have to use that amount; paying less for a house means lower monthly payments, and that means more money for savings and more breathing room in the borrower’s budget in general.
The article says: “Ideally, when looking at the amount the mortgage company says you can spend, you also want to think about how much you’re comfortable paying each month for your mortgage. To do that, you may want to consider upcoming purchases that could have an impact on your budget, like replacing an old car in a year or two or paying for your child’s (or your own) tuition in the near future.” Borrowers may also want to consider potential positive impacts on their income, such as paying off a car or other loan, or a potential promotion and salary raise. However, it is important to keep in mind that these scenarios are not solid facts as of now, so it is not a good idea to have too much riding on these potential future income increases.
The Loan Love article also reminds readers: “Don’t forget: The amount of your monthly payment also will vary based on the type of loan you select and the interest rate attached to that loan. For instance, because a 30-year fixed-rate mortgage is a long-term loan, the payments will typically be lower than a shorter term mortgage, like a 15-year fixed loan. Taking out an adjustable rate mortgage, or ARM, may make it look like you can afford more, but remember: these loans adjust – often sharply – at the end of the introductory term. That’s another reason why using a loan calculator is a good way to determine the upper limit of what you can reasonably expect as an upper qualification limit.”
For more information, please visit LoanLove.com for the full article.
Kevin Blue, LoanLove.com, http://loanlove.com/, 949-292-8401, [email protected]
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