Home buyers typically need cash for loan application fees, the downpayment, closing fees, and move-in expenses. Consider assets you can turn into cash, such as the equity in a home you already own. Other assets might include a cash gift from a family member, an inheritance, maturing bonds, or the cash value of an insurance policy. Amount You Can Borrow Mortgages come in many shapes and sizes. Fixed-rate, adjustable, FHA, VA, and so on.
Some areas even have special programs for first-time home buyers.
Your goal is to match a loan program to your circumstances so you can buy the home you want. Preapproval requires formal application and partial processing of your mortgage application. Many lenders use computer programs to match your financial and credit data to the requirements of various loan programs and identify those that fit your circumstances. The amount you can borrow is based on factors such as your assets, how much you owe, your income, and the length and stability of your employment. A change in your circumstances may affect the amount, the rate, and the type of loan for which you can qualify.