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Decide how much HOUSE you can afford  

Historically, banks use a ratio called 28/36 to decide how much borrowers could borrow. An approved housing payment couldn’t be more than 28 percent of the buyer’s gross monthly income, and his or her total debt load, including car payments, student loans, and credit card payments, couldn’t be more than 36 percent.

During the last 8-10 years, as home prices rose, some lenders responded by stretching these ratios to as high as 50 percent. Now those home owners are struggling to make mortgage payments and are underwater.

No matter what's happening in the market, we urge you to think carefully before stretching your budget.  Deciding how much you can afford involves careful attention to how your financial status might change in the upcoming years. In the long run, your own peace of mind and security will matter most.

6 Step to Acquiring Financing

While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many buyers start out confused about the process or nervous about making such a large financial commitment. From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your home.

1. Choose a loan officer (or mortgage specialist).
2. Fill out a loan application and get pre-approved.
3. Gather all required financial documents requested by lender
4. Determine what you want to pay and select a loan option.
5. Obtain a pre-qualification letter from loan officer
6. Submit to the lender an accepted purchase offer contract.
7. Get an appraisal and title commitment.
8. Obtain funding at the close of sale.