In many markets across the country, the number of buyers searching for their dream homes greatly outnumbersthe number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.
Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach.
Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
One of the many advantagesof working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”
Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:
Capacity: Your current and future ability to make your payments
Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
Collateral: The home, or type of home, that you would like to purchase
Credit: Your history of paying bills and other debts on time
Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.
Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well.
Author:Patricia Radford Phone: 423-943-9925 Dated: March 28th 2018 Views: 164 About Patricia: Buyer Specialist serving the Snook & Associates Team since 2015. I help buyers all over the Charlest...
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Throughout the 15+ years of my real estate career, I have acquired the reputation for being highly motivated and committed to meeting all of my clients needs. It there is one thing I I expect from my efforts, it is to bring a sense of ease to the complex business of buying and selling Real Estate. Keeping you informed and current on the events of your transaction is paramount.
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Jan and Paul are the very best team in real estate. Jan makes me feel as though I am her one and only client. Jan is so gracious and warm, and made me feel immediately comfortable with her, like a long lost friend. She goes above and beyond in every aspect of the buying and selling process. Jan keeps her finger on the pulse of the real estate market at all times, and knows exactly what's happening at any given moment. She and Paul constantly stay in the loop of what's going on and keep us in the loop. Jan knows how to overcome any obstacle that may arise in the buying or selling process. I am very confident in her and appreciate all she does for us. We are blessed to have her as an agent and now as a friend."