In many markets across the country, the amount of buyers searching for their dream homesgreatly outnumbersthe amount 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 advantages of 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:Sandra Tawney Phone: 480-375-0016 Dated: September 13th 2016 Views: 96 About Sandra: ...
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My Home Group was established in the Valley of the Sun back in 2004. Its owners are Designated Broker, Jereme Kleven, and the Operations Manager, Mark Hutchins. Together they have over 25 years of experience in the Residential Real Estate Market. My Home Group and its associate Real Estate Professionals collectively have over 100 years of experience.
My Home Group focuses on quality of service and excellent performance with each and every client. This making My Home Group a Rapidly Growing Real Estate Company in Arizona. My Home Group is on the cutting edge of technology. Providing effective tools for each agent's success as well as streamlining each transaction allowing agent's to focus more on their clients and their business. The end result... Amazing results and outstanding customer service every time!
Today, it seems personal touch in Real Estate has been lost. My Home Group takes pride in providing the necessary technology that is needed to succeed without losing that personal touch. This is what makes My Home Group and its agent professionals known for their excellence.