In many markets across the country, the number of buyers searching for their dream home greatly outnumbers the 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:April Stroud Phone: 803-920-6899 Dated: July 11th 2017 Views: 164 About April: ...
View our latest blog posts in your RSS reader. Click here to access.
Resource Realty Group offers industry-leading expertise in every aspect of real estate. If you're searching for the perfect new home, choosing a beach or mountain getaway, downsizing after the kids head to college, or relocating your business to an exciting new space downtown, we have a team member ready to partner with you to ensure a successful real estate experience. Blending the importance of client needs, superior communication, and adaptability to the constantly changing markets our agents deliver a pleasurable transaction tailored to exceed your needs.
In today's blog post I will be discussing something very importan
"The Dustin Johns team is very knowledgeable of the area. They helped us find the perfect property for our family at just the right price. We have already referred Tara Price to friends and family who are also very pleased with their experience. We are very blessed to have worked with her and the Dustin Johns Group!"