What Home Loan Amount Do You Qualify for?

As you start getting serious about your search for a new home, you understandably need to know what loan amount you could actually qualify for. After all, the loan affordability calculators can only get you in the ballpark. For a firm answer on the maximum loan amount that you may qualify for, you need to get pre-approved for a mortgage.

Pre-approval is often used interchangeably with pre-qualification, but there are important differences. Most notably, a pre-qualification does not involve a review of your credit report. It also uses stated information for income and expenses rather than firm, verified information. Because a pre-approval involves a harder look at the facts that may be used for the approval process, it offers greater insight into the terms that you could realistically qualify for. A full loan approval is a step beyond a pre-approval. It requires full documentation related to your income, expenses and other qualifying factors.

A pre-approval can be a strong indicator of the loan amount that you qualify for because it reviews all of your qualifying financial factors. Specifically, your lender will review your credit report, proof of income, debt-to-income ratio and other factors using supporting documentation. The process can sound tedious. However, if you have qualifying documentation on-hand, your time commitment may be less than 30 minutes. Your lender may be able to complete a pre-approval within a day or less in most cases.

The best way to get a firm idea of the loan amount that you qualify for before you settle your attention on a specific property is to get pre-approved for a mortgage. Our lending representatives at MortgageDepot are happy to guide you through this easy, fast process. When you are ready to learn more about your loan options, call or email the MortgageDepot team as the next step.

Contact one of our loan consultants for more information.