At GVC Mortgage of Carmel, IN, most of our clients come through our door wanting to know just how large of a mortgage they can afford. They wonder: “Am I shopping out of my price range? What will the monthly payments look like? How long will it take me to pay that off?” All these questions are good ones and should factor into your home-buying decision. But first, you need to know what your loan officer and lender uses to determine how much home you can afford.
To get pre-approved for a loan and know your max amount, you must go through our loan approval and application process. The documents you will want to gather ahead of time include:
- 2 most recent paycheck stubs
- 2 most recent bank statements (both checking and savings)
- 2 previous years’ federal tax returns
- Copy of your driver’s license
- Insurance agent contact information
And, if applicable, you will also need to supply divorce decree, bankruptcy papers, proof of child support, and awards letter. If additional documents are required, then your loan officer will ask you for them.
Your Magic Number
Based on the information you provide to the loan officer, he or she will assess your financial situation and then give you the total dollar amount and interest rate for which you qualify. He or she may give you several loan options, such as FHA, conventional, and so on, depending on your situation.
From there, you can determine what your monthly payments will look like using our mortgage calculator. Remember, this calculator is a tool that can provide you an estimate, rather than specific, dollar amount. You can use that number, however, to determine whether you can realistically afford that monthly payment in light of your spending habits, bills, and so on.
Remember: You don’t have to take out the full home loan amount. You can use more of your savings toward the down payment or buy a less expensive home.
Find Out More
To start your loan application or pre-approval process, contact GVC Mortgage today at (317) 564-4906. Our professional staff can help you determine just how much house you can afford as you begin your home-buying journey.
photo credit: public domain via pixabay
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