Step 2: Get Preapproved for a Mortgage - NYC Home Buying with Alex Sung

 

Step 2 of NYC Homebuying: Get Preapproved - AlexSungNYC.com

Before you decide to spend your time getting preapproved for a loan, consider this: You will spend a lot of time with the loan professional to prove to the loan specialists that you are prequalified and then preapproved. They will ask you to document your income, credit history, W2s, and etc.; so before you decided to spend your time, consider estimating what your gross monthly income(s), total monthly housing expenses, and total debt servicing is. A general rule of thumb is to have no more than 28% of gross income go towards housing expenses, and no more than 36% of gross income go towards total debt. See the 22/36 Rule from Investopedia for more information. 

If you feel like your dream home is going to cost more than what your realistic housing budget will be, than consider renting as opposed to buying until your circumstances change.

When you do get preapproved for a loan, you have at most 60 days until that preapproval gets outdated. So you have just a finite amount of time to search for your dream home. Consider hiring a Realtor like myself who is a Pricing Strategy Advisor. I can help you find your dream home within the estimates you provide to me alongside the preapproval amount your loan officer gives you.

A preapproval is more qualified than a prequalification because it is the loan officers word (although not a guarantee) that you have a high chance of getting a loan for that dollar figure. This will help me help you find your dream home within your budget. It also saves you time because it will let you know whether your dream home fits your current estimates. We will use the preapproval letter to work on finding comparables in the area to preview. Best of luck in finding your dream home! 
Step 2: Get Preapproved for a Mortgage - NYC Home Buying with Alex Sung Step 2: Get Preapproved for a Mortgage - NYC Home Buying with Alex Sung Reviewed by Alex Sung on July 05, 2021 Rating: 5

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