Page 7 - April 2017 Newsletter

T H I N K I N G O F B U Y I N G A HOME?

Thinking of buying a home? Great! I can help. Before you even consider looking at homes, you need to
consider how much you can afford. Not just in the sense of how much the home should cost, but also: 1)
the monthly payments of principal and interest, 2) how much more that payment will be when you take into
account the property taxes and homeowner’s insurance, and 3) how much it will cost to get into the home.
That last question is definitely a topic for later discussion, but in brief – how are you going to pay for the down
payment, the closing costs/fees, and the prepaid items (like property tax, homeowner’s insurance, and/or
mortgage insurance).
The first step is to see what you can afford, keeping in mind both the monthly affordability and the overall
feasibility of the home purchase. The best way to do this is the get pre-approved for the home loan. A
pre-approval requires an application to be entered with “To Be Determined” listed as the home address for the
property you want to purchase. Otherwise, all of the other information has to be exact and supported by
documents. We are talking about pay stubs, tax filings, W2/1099 statements, and any other documents that
show where you have funds and/or where funds come from.
Sound like too much work? I can do a pre-qualification for you instead. A “pre-qual” requires no documenta-
tion at all. You tell me how much money comes in, how much money goes out, and how much you have saved
for a down payment and closing costs. No documents required – the more accurate the information you pro-
vide, the more accurate the pre-qual. Just as with the pre-approval, the pre-qual will let you know if what you
can afford, both for a purchase price and for a monthly payment. Whether you get pre-qualified or
pre-approved, there is no charge for these services.
See me for either a pre-approval or a pre-qualification. I work for you, so I work at your speed. Whether you
need a pre-qualification letter the same day or can wait a few days for a pre-approval letter, these services cost
you noting. It will only “cost” you the time it takes to meet with me and a credit
pull. There is always a credit pull – I need to see your scores, history, and habits. If
you get pre-approved, you have up to 120 days for house hunting; pre-qualification
gives you up to 90 days. Whichever way you want to go, I am always happy to
provide advice, counsel, and advocacy for you and your family – my job is to help
you and get you into a home that financially makes sense.

Dave Morris
BMO Harris - Home Mortgage