Steps to Home Ownership- Step #2: Prequalification Mortgage Process

Once you’ve determined that you are ready to begin shopping for your home contact us, at 1-888-772-1871 or visit our online mortgage center at, and we will help you determine your budget for purchasing a home.  When creating a home purchasing budget, it is important to keep in mind the following:

  • Down payment. The higher the down payment, the lower the monthly mortgage payment will be. And vice versa.
  • Private Mortgage Insurance (PMI). Buyers are usually required to have PMI if the buyer doesn’t put a 20% down payment. Once a buyer has achieved 20% equity in a home, the cost PMI is no longer required. But until 20% equity is achieved, PMI is a cost outside of a mortgage payment. Ask us to explain PMI further and possible ways to avoid it.
  • Interest Rate. The mortgage interest rate affects how much the monthly mortgage payment will be as well. The higher the interest rate, the higher the monthly payment. The interest rate may be affected by a buyers credit score, type of mortgage, and overall economic health of the country.
  • School and property taxes are the responsibility of home owners and are based on the school district and area of where the house is located.
  • Home Insurance. Home insurance is required for homeowners and is a common expense new homeowners overlook.

You can use our mortgage payment calculators to see how the above factors affect your future monthly mortgage payments.

To help us to determine how much you qualify for, you’ll need to provide the following income information:

  • Recent paystubs
  • W-2 statements
  • Tax Returns

We’ll walk you through the prequalification process and requirements. If you qualify, you will receive a Prequalification Certificate!