Big Bear Real Estate – What can you REALLY afford?
When it comes to purchasing Big Bear real estate, how do you know what you can afford? This question puzzles many buyers as they begin to consider the purchase of a home. There are a number of ways that you may get an idea of how much home you can afford. Estimating the amount is one way and can be done by your real estate agent. This estimate is based on the typical loan set up and is not absolute. Applying for a loan and being pre-approved for your purchase of Big Bear real estate will allow you to know exactly what you can afford.
Pre-qualification and pre-approval are entirely different. A pre-qualification is not binding by any means and does not mean you have been approved for a loan. Pre-approval for your Big Bear real estate purchase will require providing all the documentation needed to a lender. This will include pay information, tax forms, debts that you are paying and a credit check. Once all the documents have been checked and a debt to income ratio is determined, depending on your credit rating, an approval for a certain amount will be provided. This is typically valid for 60 days.
Checking your credit rating before the lender looks at it is a good idea. This can be accessed through one of the credit reporting agencies. The top three are Experian, Equifax and TransUnion. If there are discrepancies or mistakes, you can take care of the problems and increase the chance of being approved for the purchase of the Big Bear real estate you are interested in purchasing.
Before talking to a real estate agent or getting a pre-approval, you may want to get an idea of the amount of the Big Bear real estate you can afford. Do this by looking at the amount of your gross income. For example, if you make $60,000 per year, the amount of home you can afford will generally be two and a half times your income. This would mean you could buy a home in the $150,000 range. Of course, this is dependent on other factors, such as your expenses and your credit rating.