Welcome Home Buyers

Pre-approval is a process where a lender evaluates your financial situation to determine how much you can borrow. It provides you with a conditional commitment for a loan amount. This step is crucial as it helps you understand your budget and strengthens your offer when you find a home.

Your affordability depends on various factors, including your income, debts, and down payment. A general rule is that your monthly housing costs should not exceed 28% of your gross monthly income. Consulting with a mortgage advisor can help you get a clearer picture.

Earnest money is a deposit made to demonstrate your serious intent to purchase a home. This amount is typically held in escrow and can be applied to your down payment or closing costs. If the deal falls through due to contingencies, you may get this money back.

Closing costs are fees associated with finalizing a real estate transaction. These can include appraisal fees, title insurance, and attorney fees, typically ranging from 2% to 5% of the home's purchase price. It's important to budget for these costs in addition to your down payment.

A contingency is a condition that must be met for the sale to proceed. Common contingencies include financing, home inspection, and appraisal contingencies. These protect you as a buyer, allowing you to back out of the deal if certain criteria are not satisfied.