Financing
Find out what you can actually qualify for
Harry spent more than two decades on the financing side of this business. Before you talk to a lender, get a realistic read on where you stand and what your payment would look like.
Why it matters
Pre-approval is the step that decides everything after it
Buyers who skip this end up in one of two places. Either they spend months looking at homes they cannot buy, or they find the right one and lose it while they scramble to get a letter.
A pre-approval does three things: it tells you the real ceiling of your budget, it tells sellers you can close, and it surfaces any problems in your file while there is still time to fix them rather than during escrow.
What lenders look at
- Income and stability. How much, how consistent, and how it is documented. Self-employed income is treated very differently from W-2 income.
- Debt to income ratio. Your monthly obligations against your monthly income. This is often the binding constraint, not the down payment.
- Credit history. Score, payment history, and how much of your available credit you use. Small changes here can move your rate.
- Assets and reserves. The down payment, the closing costs and what is left afterward. Where the money came from matters too.
Most agents refer you to a lender and step back. Harry's background is in mortgage lending, so he can look at your situation first and tell you what to expect and what might trip you up. The review below is from a client whose local lenders had already said no.
Monthly payment calculator
Adjust the numbers to see the full monthly cost, not just principal and interest.
“Harry was AMAZING to work with! When no other local lenders would work with me, Harry took the time to listen to me, hear my story, and was willing to work with me in purchasing a property in another State. He was creative and supremely knowledgeable in his field. There was never a time that I didn't feel that Harry had my best interest at heart. His calm demeanor helped keep me focused on the task at hand. Harry helped me purchase the property of my dreams and I would work with him over and over again.”
Financing basics worth knowing
Rate versus payment. A lower rate with higher fees is not always cheaper. Compare the total cost over how long you actually plan to keep the loan.
Points. Paying up front to lower the rate can make sense, but only if you keep the loan long enough to break even.
Fixed versus adjustable. Fixed is predictable. Adjustable can be cheaper early and is a real option if your horizon is genuinely short, but the risk is yours.
What to have ready
- Two years of tax returns and W-2s or 1099s
- Recent pay stubs, or profit and loss if self-employed
- Two months of bank and asset statements
- Photo identification
- Documentation for any gift funds
- An explanation for any recent large deposits
Common questions
Financing questions people ask
Pre-qualification is a conversation and a rough estimate. Pre-approval means a lender has looked at your actual income, assets and credit and issued a letter based on documentation. Sellers take the second one seriously and largely ignore the first.
Four things, mostly: your income and how stable it is, your debt compared to that income, your credit history, and the assets you have for the down payment and reserves. The property itself matters too, through the appraisal.
A mortgage inquiry has a small, temporary effect. Multiple mortgage inquiries inside a short shopping window are generally treated as a single inquiry, so comparing lenders does not compound the damage.
Usually 60 to 90 days, because income and credit information goes stale. Updating it is straightforward once the file already exists.
Often, yes. Declines happen for specific and frequently fixable reasons: how self-employed income was documented, a credit item that could be corrected, a debt that changed the ratios, or simply the wrong loan program for the situation. It is worth having someone look at why.
Yes. Conventional loans go considerably lower, FHA lower still, and VA can be zero for eligible buyers. Under twenty percent typically adds mortgage insurance to the payment, which the calculator on this page estimates for you.
Not sure where you stand?
Send the basics or call. Harry will tell you what is realistic before you spend a weekend at open houses.