In This Chapter
• Considerations when shopping for a loan
• Choosing a loan from a mortgage broker, a bank, or a credit union
• Prequalification versus preapproval
• Figuring out how much you need to borrow
• Understanding how debt-to-income ratios affect your approval
You may be asking why this chapter focuses on financing your new home when you haven’t even found the house you want to buy yet. The earlier you begin to think about how you’ll finance (that is, pay for) it, the better. Finding out how much money you’ll qualify for and whether you’ll even be approved for a loan will make your search easier and quicker. No sense looking for more than you’ll be able to spend.
Over the next few chapters, you’ll read about the ...