Prequalify for a Mortgage Loan -
Prequal Letters

Step #1: Get Prequalified

Always talk to a mortgage lender before beginning a serious home search. You'll want to know your price point and monthly mortgage payments before falling in love with a home. Similarly before you apply for financing, you should allow a lender to size up how much mortgage you can afford. Using financial information that you provide, prequalification is a lender's analysis of your general position as a borrower or, in other words, an estimate of what you can afford.

Besides giving you an even better idea of what you can afford, getting prequalified helps you make an informed application for your mortgage pre-approval, and is evidence to realtors that you will be able to get financing. Experienced agents will require a prequal letter in writing from a lender before showing you homes. Why? Because sellers want to know that the buyers touring their homes are legit and financially capable. And lastly, a prequalification letter will be required to accompany your "offer to purchase" once you find a home that you like.

So, go ahead! See how much home you can afford. It's quick, free, and removes all of the guesswork! Once this is done, all you have to do is find your home!

Mark Schrews
Brand Mortgage
Phone: 770.237.1788
Fax: 678.407.8928
Cell: 404.391.0212
Email: mschrews@brandmortgage.com
NMLS #: 240890

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Areas and Cities I Serve

East Cobb, West Cobb, Acworth, Adairsville, Alpharetta, Aragon, Atlanta, Avondale Estates, Austell, Ball Ground, Berkeley Lake, Big Canoe, Bowdon, Braselton, Bremen, Buchanan, Buford, Calhoun, Canton, Carrollton, Cartersville, Cedartown, Chamblee, Chatsworth, Conyers, Covington, Cumming, Dacula, Dallas, Decatur, Doraville, Douglasville, Duluth, Dunwoody, Emerson, Euharlee, Flowery Branch, Grayson, Hiram, Holly Springs, Hoschton, Johns Creek, Kennesaw, Lawrenceville, Lilburn, Lithia Springs, Lithonia, Loganville, Mableton, Marietta, McDonough, Milton, Norcross, Peachtree City, Powder Springs, Rockmart, Rome, Roswell, Rydal, Sandy Springs, Smyrna, Snellville, Stone Mountain, Sugar Hill, Suwanee, Temple, Tucker, Villa Rica, Vinings, Waleska, White, Whitesburg, Winston and Woodstock.

Getting Prequalified Saves Time!

First of all, it gives you an idea of what you can borrow so you don't waste time looking at homes you can't afford. While looking for a home, it will also help in making an initial offer because it is evidence that you will be able to pay for the home. Third, when you apply for a loan, it will speed the process because you will have already assembled all of the financial documents that you're likely to need.

How Much Can I Afford?

Determining how much home you can afford means figuring out what size mortgage a lender will qualify you for. To calculate this number, lenders use:

Your income
Your credit rating
The size of the down payment
The length of loan (15 years vs. 30 years)
The amount of your outstanding debts (debt-to-income ratio)
The interest rate for your mortgage
The likelihood that you won't be able to pay back your loan

Additional Costs to Consider When Setting Your Budget

Many people get in over their head financially by failing to estimate the total cost of buying and owning a home. When estimating how much home you can afford, include the following items:

Down payment: 1-20%
Financing fees charged by loan representative: approximately 1% of loan amount
Closing costs including appraisal, pest-control inspector, home inspector, escrow holder, and title insurer: typically 5% (This is typically financed into the loan and the mortgage payment)

Once you Own the Home, Don't Forget There Are Costs of Ownership:

Mortgage payments
Homeowners insurance
Decorating/furniture
Maintenance
Repairs
Upkeep
Remodeling

This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.