A mortgage is a loan obtained to purchase real estate. The “mortgage” itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest. These two terms are defined in the glossary or the end of the brochure.
You will need to work with a lender to become pre-qualified and have them assist you in deciding on the type of loan that is best for you. The pre-qualification process involves simple calculations that you can perform prior to ever applying for a mortgage to figure out what price range you should be looking in as well as the monthly mortgage payment (principal plus interest).
We can provide you with a simple HUD Pre-Qualification Mortgage Worksheet and sample factor table to find out the loan amount you can qualify for based on your gross (before taxes) monthly income. Once you have the mortgage amount, you can simply add your downpayment and then you will know what Sales Price you need to be searching.
The factors used in calculating the Maximum Mortgage Amount and payment are your gross income, housing costs and other long-term debts (like car or student loan payments), and monthly debt payments with 10 months or more payments remaining. The worksheet will guide you through the calculation process taking into account escrows and mortgage rate factors.
If you would like to receive this simple Pre-Qualification Mortgage Worksheet, just email Mark Lackey at Atlanta Housing Source (info@AtlantaHousingSource.com) and request this Worksheet. We will be happy to assist you with the calculations if necessary and can refer you to a loan officer if you are not already working with one. Once you know your qualification limitations, we can assist you in finding the home of your dreams located in Gwinnett, Cobb, Forsyth, and North Fulton. Call Mark today at 404-886-8789.