Should I get prequalified for a mortgage before I shop for a home? 

Getting prequalified for your mortgage is an important step before you shop for a home. It tells you how much home you can buy and makes applying for your mortgage easier. A mortgage prequalification can also give you additional leverage with a seller in negotiating the best possible terms of the sale. 

How long will it take to get prequalified for a mortgage? 

You can get a response from me in minutes when you prequalify for a mortgage. There are five easy steps involved in the prequalification process with an easy online form to complete. 

How much home can I afford? 

The amount of home you can afford is based on the amount of mortgage loan you can comfortably support. Generally, the amount of mortgage you qualify for is based on three factors: 

1.Your monthly payments as a percentage of income.
2.How much cash you have for the down payment and closing costs.
3.Your credit history.  

What types of mortgages are available today? 

1.Fixed-rate mortgage. You pay the same interest rate and same monthly payment of principal and interest for the duration of the mortgage. The most common terms are 30, 20 and 15 years. Fixed-rate mortgages are best if you plan on being in your home for a while. 

2.FHA Loans FHA loans are helpful for applicants who don't have a 20% down payment saved or who need assistance with more flexible qualification requirements. Bank of America—an FHA-approved financial institution—offers FHA loans that are insured by the Federal Housing Administration (FHA)1. Because FHA loans are designed to help low- and moderate-income or first-time homebuyers, there are differences compared to traditional loans. One difference is that income and allowable debt are subject to more flexible loan qualification requirements than a traditional loan, making it easier to qualify for this type of loan. Another difference is that there's a maximum loan amount, the limit of which varies depending on where the home is located. 

3.VA Loans VA loans are offered by VA-approved lenders like Bank of America, but are insured by the Department of Veterans Affairs. To qualify, you must be a current or former member of the U.S. armed forces or the current or surviving spouse of one. These loans can help reduce your down payment requirement, sometimes to zero, and can even help you get a lower interest rate on your loan. There are, however, limits on the available loan amount. If you think you qualify for a VA loan, be sure to let Bob know so you can explore your options together. 

4.Adjustable-rate mortgage (ARM). The interest rate stays fixed for an initial interest rate period, which ranges from 1 to 7 years. Then the rate will adjust up or down annually for the life of the loan based on a specified index. An ARM is a good option if you believe interest rates will go down over the next few years or if you plan on staying in your home 5 to 7 years or less. 

So how much will I need down? 

That depends on the purchase price of your home and your loan program. The down payment is a percentage of the purchase price, and different loan programs require different percentages, ranging from 0% to 20%. 

Should I Sit Down with a Lender 

Getting a professional opinion on your financial ability to qualify for a home loan can help you figure out where you stand and set goals for the future. You may consider sitting down with a real estate professional as well, to get an idea of what your target home market is like and what opportunities you can pursue when you're ready. 

When your ready to get started please click the link below. 

Bank of America Home Loans