406.541.6550 | 2800 South Reserve | Missoula, MT 59801
Before you start looking at homes, it's a good idea to find a target price range that you can afford. A mortgage lender will want to make sure you can handle the down payment, plus a monthly mortgage payment made up of principal, interest, taxes and insurance (PITI).
Interest rates and your personal finances will influence the amount of house you can afford. On the Windermere website, Windermere.com, you can also find a mortgage calculator for each home listed. But remember, it's always good to talk to a lender before you start shopping for a home. We can refer you to lenders suited to your specific financial needs.
There are a wide variety of loan programs available to buyers. I can give you the names of several mortgage specialists who can review all of your options with you.
In order to plan properly, you need to understand what lenders are looking for from a borrower. There are three factors that help determine if you qualify for home financing:
Most loan programs require you to verify all of your income sources. Your mortgage consultant will let you know what documentation is needed. Typically, you will need to provide pay stubs and your W-2, and if you are self-employed, you may need to provide copies of your tax returns.
The required down payment varies according to the loan program. There are several affordable options for borrowers. Closing costs are associated with finalizing the transaction and include the appraisal fee, loan origination fee, title insurance, escrow services and legal recording of documents. Each loan is different, so it is important to discuss these fees with a mortgage expert.
All lenders review a borrower's credit history to determine the type of credit used, the amount owed and the borrower's history of repaying debt.
For additional information, click here for several mortgage calculators.
When you speak with your mortgage professional to figure out how much home you can afford, it's also a good idea to get preapproved for a mortgage before we start your home search. This will help us narrow your home search to a price range that's comfortable for you, and being preapproved also makes for a stronger offer in the eyes of sellers.