It is usually recommended that you know how much home you can afford before you start searching for your new home. That may prevent you from falling in love with that million dollar oceanfront condominium or lakeside home that takes your breath away.

There are rough estimates of how much home you can afford like two and a half times your gross yearly income. However, it is better to let a bank or lending institution tell you what price range you should be looking at.

The first step in making this determination is call PRE-QUALIFICATION. This process is the bank's non-binding opinion of how much you may qualify to borrow based on your salary, debts and credit score. The process usually takes no more than a few hours at most.

If you compare pre-qualification to a painter's rough draft, then PRE-APPROVAL is is the closest thing to the completed painting. Pre-approval involves contacting your present and previous employers, verifying your salary, checking bank statements, taking a closer look at your credit history, past income tax returns, your assets and your debts. The bank may issue a letter stating that your home loan is approved for a certain amount within a certain timeframe.

A pre-approved loan can give you a decided edge when you make an offer to purchase a house. The seller will likely give you preference over others buyers. Also, a pre-approved loan can also allow you to close the transaction within a very short period of time, usually a week or two. Again this will appeal to the seller and give you an advantage over other buyers.

This information was written by Anthony Thomas, homeowner, investor and former Century 21 Real Estate Agent. The information provided here is for educational purpose only and should not be considered a substitute for professional advice from real estate personnel.

At times there are unexpected events that may force us to move. If that time comes, you want to be able to list your home and sell it quickly. The location of your home can greatly influence how quickly it sells. It is therefore very important that you choose your location wisely when buying as home.

A house on a street with heavy traffic is a disadvantage to many buyings. A house close to schools is a big advantage. Even if you have no plans to have children, living near good schools will help sell your home quicker. Many home buyers either have children or are planning to do so in the near future. The location of the local schools is a big consideration when they make their decisions.

All other things being equal, a home in a desirable location commands more value and attention than an identical or similar home in a less desirable location.

This information was written by Anthony Thomas, homeowner, investor and former Century 21 Real Estate Agent. The information provided here is for educational purpose only and should not be considered a substitute for professional advice from real estate personnel.