In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the 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, 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:REMAX Elite Phone: Dated: December 17th 2017 Views: 103 About REMAX: ...
View our latest blog posts in your RSS reader. Click here to access.
I am a dedicated agent who is known for getting the job done and making the impossible happen. I will show you I am not the stereotypical agent by doing what I say and keeping YOUR best interest at hand. The way I operate my business is simple, No Lies or False Promises just the facts and a professional aggressive approach to getting things done.
Being a strong minded honest individual who loves his family and work would be a good start to my description. When I became a Realtor I was looking for a change in the way I was able to represent my clients. In past years I worked in the automotive industry and was governed by rules and customer service guidelines that I didn't always agree with. Now I am able to treat every client as family and can do what is in their best interest at all times. This is the KEY to making Customers For Life and not just another sale. I promise that I will treat you like a person and not just another commission. When you join my team you can rest assured that you have a friend in the industry on your team. As a local and native Floridian I know the area better than the majority of other Realtors and am able to answer your questions with honesty and knowledge in every transaction.
Your Wants Needs and Budget are Important so call me and lets get the ball rolling on your next real estate transaction.
One of the main reasons why For Sale By Owners (FSBOs) don’t use a r
"I recently went up against competitors in Lansing Island for a $1.7 million dollar listing. Justin stopped what he was doing and went out of his way to assist me in securing the listing. We talked about what to say and how to say it. He even took the time to e-mail responses to objections the seller was making about the competition. All I had to do was simply copy & paste what he said and send along with my signature on it. Long story short, I won the listing and sold the house 3 weeks later. By leveraging the knowledge and support of a Billion Dollar Broker, I now have an additional $30,395 sitting in my bank account! The value that I receive working with Justin, Heather, Susan, Lisi, Sharon and the rest of the crew here at Elite has been priceless!"