Countless times buyers just want to jump in the car with a Realtor and look and look and look at any and all houses that they "know" they can afford. But can you really? Knowing your buying power before looking is the smartest thing a buyer can do when shopping for a home. You need to know how much a lender will loan you and at what terms. Based on the buying power the lender tells you, you need to know the TOTAL monthly payment including taxes and insurance and if you are comfortable with that payment. For example - I had a homebuyer that came to me and said they wanted to look in the $220,000 - $250,000 price range. After making them understand that they had to know if they could get a loan for that amount, they agreed to talk to my lender. The lender came back and said they were prea...
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