Updated: May 3, 2021
We asked our resident Mortgage Pro, Joe Penrose, the seven most frequently asked questions when it comes to making a Real Estate Purchase. If you're considering making your next big step in life, buying property, you're going to want to soak this information in!
Q: How much of a loan do I qualify for?
A: There are a few different ways you can find out how much of a home loan you qualify for. An affordability calculator can be a great first step and give you an estimate on where you stand. But there are some other things to consider when calculating this number. You can use the 28/36 Rule for Affordability. This rule states that your mortgage payment should not be more than 28% of your pre-tax income and your total debt should not exceed more than 36% of your pre-tax income. Getting pre-qualified is also an important step in determining how much you can afford. The lender will assist you through this process and assess your finances to determine how much they can lend.
Q: How can I review my credit score?
A: You are entitled to one free credit report every 12 months from each of the three credit reporting companies: Experian, Equifax, and TransUnion. It is important to be cautious of websites that claim to offer free credit reports if you make a purchase or order products through them. When you receive your credit report, you’ll want to make sure everything is accurate before you move forward when buying a home. To get your free credit report online, go to www.annualcreditreport.com.