100% loans are still available for Waldorf real estate buyers. Contact Homefinders.com for information and approximate mortgage payments for different loan types.

Q. What's the difference between "Pre-qualified" and "Pre-approved"?

A. Pre-qualified is knowing what you are "qualified to buy". By running a
calculation of your income, your debt, your cash available for down payment
and closing, an experienced agent or lender can
easily determine how much home you are "qualified" to buy. What the agent
or lender will do is see how your existing income to debt ratio compares
with the income to debt ratio required by lenders.

EXAMPLE:

Your income is $96,000 annually - $8,000 a month.
Your fixed monthly credit obligations for auto finance payments, credit card minimum payments, student loan payment, loans, etc. are:
Auto payment - $372 monthly.
Credit Card minimum required payments - $210 monthly.
Student loan payments - $170 monthly
TOTAL MONTHLY DEBTS - $752.00

Most lenders will consider an income to debt ratio of $30-35% as long as your credit scores are in the high 600s or better. If your monthly income is $8,000, you would be qualify for a mortgage payment of up to approximately $2,400 to $2,800, depending on the amount of your down payment and credit scores.

For this example, let's say your credit scores are reported as a combined 760. Very good. That means that you would be qualified to have a higher income to debt ratio. At 35% of your income, you would qualify for a mortgage payment of up to approximately $2,800 representing PITI (Principal, Interest, Taxes and
Insurance).

An average mortgage payment in Charles County would be

Principal and Interest $2,500
Monthly Tax 250
Monthly Insurance 50
TOTAL PAYMENT $2,800 - representing 35% of your gross monthly income.

The above scenario would qualify you for a mortgage loan of approximately $400,000 @ 6.5% Interest.
Add a 10% down payment and your price range would be up to approximately $440,000.
Add a 20% down payment and your price range would be up to approximately $480,000.
For 100% financing, your price range would be approximately $400,000.

For detailed qualifying information, contact Homefinders.com and we'll be glad to go through your individual income/debt ratio and compute your
qualifying price range for searching for a home.

IF YOU PREFER TO GET PRE-APPROVED PRIOR TO SEARCHING FOR A HOME, Homefinders.com will gladly refer you to an experienced, qualified local
lender. We deal with direct lenders who have a good track record of helping our home buyer clients get to settlement on time.

STEPS FOR PRE-APPROVAL
1. Make a loan application.
2. Provide the lender with Social Security number to obtain a detailed credit report with credit scores.
3. Provide the lender with the documents to verify your income, debt payments, landlord, student loans, etc.
4. Once your income and debts have been verified by mail or phone, the lender will issue a Letter of Pre-Approval or LOAN APPROVAL or whatever the
particular lender call a loan approval. At this stage, if you have not entered into a Contract of Sale, the loan approval will be conditioned on a Contract of Sale and a satisfactory appraisal for your home of choice.

We'll help you get pre-approved for a mortgage loan for your Waldorf home

Homes for Sale in Waldorf MD
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Broker: Homefinders.com