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:Bonnie Lelak Phone: 404-788-2580 Dated: December 2nd 2016 Views: 17 About Bonnie: Experience with regular home sales, short sales, foreclosures, HUD homes, no down payment program ho...
As a Realtor I have been able to use many of the skills that I have learned from my previous experiences. I spent the past 10 years owning a home inspection company with my husband and watched as buyers would find a home and then have it inspected and be disappointed with the findings. I love being able to help buyers from the start of the process. As a buyers specialist I can help clients look at homes with a different eye, always looking for tings that the home inspector will find issues with and helping my clients see possible issues before going under contract, saving them time, money and heart ache. Servicing all levels of buyers, from the first time home buyers to the luxury buyers. The finishing touch is being able to provide them with tools that can help them pay off their home in less than half the time. Helping buyers find their dream home is very rewarding.
As a listing specialist, I find unique ways to get the attention of the buyers, from text marketing, video, and getting your home listed on the first page of Google, it's all about exposure. I use all the outside marketing tricks and tips that I used and learned over the past 8 years to get the word out about your home. Contact me to find out about my exclusive marketing plan!
Mortgage interest rates, as reported by Freddie Mac, have increas
"Bonnie is absolutely the best Realtor there is. We drove 8 hours to meet with a different Realtor who decided to stand us up and I found Bonnie on Craigslist. She responded instantly and came to meet up with us. Bonnie and spent the next four hours showing us houses that fit our criteria, and even missed her sons prom pictures to get us into a house. She stepped up to the plate when we needed someone the most and she has never let us down. Bonnie responds to every phone call and email in a timely manner. She always has a smile and is willing to help. Bonnie has became so much more than just a Realtor, if you give her the chance then she can do the same for you."