Relocation: Step 2 - Following the Numbers To Your New Home
Understanding Where You Are And Where You Want To Be
Our hearts go out the the out to all of you brave out-of-towners who are relocating to an area that is new to you. We understand that even a simple mile can make all of the difference to a person's life. Change does not come easy to everyone and buyng a home certainly offers it's own set of stressors. Once your decision is made to move and you understand your role and techniques in finding the right neighborhood as we suggested in Relocation: Step 1 The First step in Buying Your New Home, then you are ready for Step 2 !
The Challenge
The second challenge is finding out where you are financially and where you want to be as far as the right 
price range for the home you will be buying. Knowing what amount of money yo can afford to spend on a home is going to really narrow down the number of neighborhoods in which you will be looking. So Step 2 works to trim the fat, if you will, on Step 1. Once you know what you can afford to buy even as a lease purchase option, there will be some neighborhoods you can completely scratch off of your list before making arrangements to visit and explore. Whew, that sure saves a lot of time and energy !
We suggest immediately speaking to a mortgage broker or bank to determine what you may be preapproved for. Speaking to a mortgage representative now will help you do two very important things. First, it will give you a comprehensive overview of your current finances and thus present to you an idea of what mortgage products are available to you. Second, it will give you an idea of what property price range you can afford and what your mortgage payment will look like.
If you must relocate and find that you are not qualified to purchase right now then your meeting with the mortgage broker or bank is certainly not in vain. This is your opportunity to create an action plan that will get you ready to purchase a home sooner than later. That may mean building a job history, fixing your credit, or determining how much money you will need to save for a down payment.
Step 2: Speak to a Bank or Mortgage Broker immediaely for a Mortgage Pre-Approval
Banks and Mortgage Brokers have all of the info you will need at their disposal. Here are a few tips and questions to help you gather the information you'll need to find a home:
1) Prepare to have the following documents at hand: Pay stubs, tax returns for 2 years and bank statements.
2) Ask the Broker to explain to you all of the loan products you qualify for and their pros and cons.
3) Ask what your monthly mortgage payment will look like.
4) When calculating your mortgage and closing costs do not forget to add the city's transfer taxes (in Philadelphia the buyer pays 2% of the sales price but in other areas the percentage is different).
5) If you find you are not qualified for a mortgage, find out why and ask the Broker to help you put a game plan together for you so you can get qualified sooner than later.
Please stay tuned for Step 3 of our relocation blog series ! ***************************************************************************** If interested in relocating to Philadelphia, contact Chris and Stephanie Somers at thesomersteam@yahoo.com or 215-400-2612 . You can also connect with us on Facebook and Twitter . For investment properties, check out our new investor site at Philly Investor Hub ! If interested in checking out our new office in Northern Liberties, let us know ! The Somers Team - Philadelphia Real Estate Search the MLS Properties Here in Philadelphia The Philadelphia Real Estate Blog Click here to receive our Blog updates via email ! Areas of specialty include Northern Liberties, Old City, Center City, Fishtown, Graduate Hospital, Art Museum, Queen Village, Pennsport, Old Kensington, Port Richmond, Bridesburg, Society Hill, Loft District, Spring Garden and more !
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Getting pre-approved in the buying process is critical. It is the 1st thing I always make sure a buyer does before we go and look at homes!
You stated this "5) If you find you are not qualified for a mortgage, find out why and ask the Broker to help you put a game plan together for you so you can get qualified sooner than later."
I always have a % of buyers that were not initially qualified but through credit scoring advice and education were later qualified to buy a home. Sometimes it is a month, sometimes it is a year, but it is important to have a go-to person to rely on for such advice.