BUYING A HOME

BUYING A HOME

If you are searching for a home in the Mankato area, Coldwell Banker Welcome Home Realty is here to help you. When you buy a house in Southern Minnesota you may need a home mortgage. We have tools to help you determine how much financing you may be approved for, based on how much you can afford to spend on a home loan.

Our sales associates can provide detailed information on almost any property currently listed for sale - whether it's listed by Coldwell Banker Welcome Home Realty or another real estate company.

How much home can you afford?

Use this handy calculator to help figure out how much you can afford to spend on a home.

This material is intended for example purposes only and is not a commitment for financing. This worksheet is intended for use on primary residences. Your rate and affordable price will vary, depending on the size of your down payment, specific terms of your loan, other monthly obligations and the amount of assessment fees, if applicable.

Coldwell Banker Welcome Home Realty has developed a set of service standards based on experience and understanding gained from millions of home buyers.

Enter your Gross Annual Income (before taxes): $
Gross Monthly Income: $
Monthly Allowable Housing Expense and Long-Term Obligations
38% of gross monthly income is usually allocated
for prinicpal, interest, taxes, insurance, and monthly long-term obligations
$
Enter your Monthly Obligations
Credit Cards, Child Support, Car Loans, etc.
$
Monthly Allowable Housing Expense
Should not exceed 33% of monthly income
$
Monthly Principal and Interest Payment
80% of the Allowable Housing Expense is usually allocated to the principal and interest, excluding taxes and insurance
$
Estimated Mortgage Amount
8% loan amortized over a 30-year term
$
Estimated Affordable Price
80% of the estimated mortgage amount, assuming a 20% down payment
$
 

Financing your new home

In today's fast-paced real estate environment, home buyers need every possible advantage. Coldwell Banker Welcome Home Realty has made home buying simpler by helping buyers get "preapproved," and not merely "prequalified." What is the difference?

Pre-approval vs. Pre-qualification

You will have a greatly improved negotiating position when you are preapproved for a mortgage. Sellers are more apt to negotiate with someone who already has a mortgage approval in hand. The pre-approval letter lets the seller know they are working with a serious buyer. A preapproved buyer can also close on a property more quickly - another major consideration for a motivated seller. Obtaining a preapproved mortgage is essential in a "sellers' market" or where supply is limited.

Pre-approval

Pre-approval uses basic information as well as electronic credit reporting. It is a true mortgage commitment. Which means a commitment to financing your home and an indication of the total mortgage amount available to you. Coldwell Banker Mortgage can help you through the pre-approval process. There is no charge for this service.

Pre-qualification

Pre-qualification is not a full mortgage approval, but an estimate of what you can afford. When you prequalify for a mortgage, the lender collects basic information regarding your income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount.

About Mortgages

For more information about mortages visit our Mortgage Process page.