In many markets across the country, the number of buyers searching for their dream homesgreatly 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, understanding your budget will give you the confidence of knowing if your dream home is within your reach.
Freddie Maclays 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 themany 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 Macdescribes 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 thedown payment and credit scoresneeded 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.
Author:Bree Sweet Phone: 541-743-5535 Dated: April 16th 2018 Views: 117 About Bree: ...
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Purchasing a home is one of the most important decisions you'll make in your life.A good RE Agent will remove all of the stress from the process & make sure your needs are met every step of the way.This is one thing you can always count on-Quality service by someone you can trust.To be a Realtor is not just our career, it's our passion and We truly love what we do.We are 100% committed to our clients, and if only for a short while,we are fortunate enough to be part of one of the biggest decisions of your life.So, whether you are buying or selling a home, we will work side-by-side with you and our reward will be helping you find that perfect home for your family, closing the sale and handing you the keys.Contact us today & let's get started.We look forward to working with you.
Amy spent several years in the mortgage & lending business anywhere from loan servicing, collections,commercial,residential,business banking as an account executive,processor,loan officer, broker coordinator & underwriter.When subprime market was taking off,she jumped from retail banking to wholesale lending & then transferred out to join her family's excavation trucking business later working as an OSHA/Safety Trainer,Designer, & Quality Construction Manager for a small construction company focusing on new construction of Adult Care Homes and Residential Care Facilities. Amy then went on to focus on health & life insurance for a few years while buying properties at auction to renovate&resell,part time, but her heart&passion has always been in R.E.. After working for an auction company for the past 2 years, it was time for a change & is now focusing on real estate full time helping others to fulfill their dream of home ownership.She likes to think outside the box & is happy to help in any way she can & can refer you to loan officers,contractors,inspectors & others that she knows & trusts to assist you in the home buying process.