It's an interesting time to be shopping for a new home. First-time home buyers will have the benefit of not having to sell a home in a down market in order to buy their new home. Current homeowners will have a slightly more difficult time, as they will be receiving less value from their home than they originally expected, but will also be able to get into a new home for less than expected. Find a good real estate agent, and they will go a long way toward steering you through the potential minefield of the modern housing market. Your real estate agent may also be able to put you in touch with a good mortgage broker. You'll be enjoying your new house before you know it!
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The Mortgage Qualification Process

Before you buy a home, you need to qualify for a mortgage. Lenders use ratios to determine your mortgage payment account. Lenders calculate the ratio of your income to your monthly payment. Mortgage bankers will permit you to purchase your home worth about three times your annual income.

Online mortgage calculators can give you an idea of how much you can afford. By entering information such as your cash down payment, annual income, and your monthly debt, you can determine your price range. Working with lenders prior to bidding, you can determine if you qualify for a mortgage big enough to finance your purchase.

Mortgage companies consider your employment history, stability, and your credit score. They will also consider the value of personal property such as your car, and your loan account balances.