Searching for Your Dream Home? Getting Pre-approved should be your first step
Searching for Your Dream Home? Getting Pre-approved should be your first step. In today’s market, 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.
Knowing your budget will give you the confidence of knowing if your dream home is within your reach.
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.
The 4 C’s 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
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.” Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today.
Searching for Your Dream Home? Getting Pre-approved should be your first step.
