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:Paul and Clarie Holland Phone: 913-732-1247 Dated: September 13th 2016 Views: 144 About Paul and Clarie: ...
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The KC Metro Team gives Kansas City area home buyers and sellers the highest quality services. As buyers agents we specialize in first time home buyers, active duty and veterans looking to use their VA home loan benefits and people looking for a good deal on foreclosures.
Our listing services set us apart from the competition by using professional photography for every house we list and both traditional and aggressive online marketing techniques.
The KC Metro Team's goal is to provide great service and become the real estate professionals you would recommend to your friends and family. Our excellent customer service team looks forward to serving you.
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"my experience with the real estate agent was excellent. He stayed on top of things for me, was always available to take my calls, etc. As a first time home-buyer with no knowledge of the process, this was extremely helpful."