Getting PreApproved Should Always Be Your First Step

Dated: 04/16/2018

Views: 144

 

Getting Pre-Approved Should Always Be Your First Step

Getting Pre-Approved Should Always Be Your First Step | MyKCM

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, understanding 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:

  1. Capacity: Your current and future ability to make your payments

  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash

  3. Collateral: The home, or type of home, that you would like to purchase

  4. 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.

Bottom Line

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.


Blog author image

Larry Gilman

I've been involved in the Real Estate business since 1994 and have helped over 1,200 families buy or sell a home, some I've done two and three times. I specialize in creative financing, home marketing....

Want to Advertise on this Site?

Latest Blog Posts

Getting PreApproved Should Always Be Your First Step

 Getting Pre-Approved Should Always Be Your First StepIn many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes

Read More

The Cost Of Your Next Home Will Be LESS Than Your Parents Home

 The COST of Your Next Home Will Be LESS Than Your Parents’ Home WasThere is no doubt that the price of a home in most regions of the country is greater now than at any time in

Read More

US Housing Market Is Still In Buy Territory

 US Housing Market Still In ‘Buy Territory’!According to the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy,

Read More

What Should You Look For In Your Real Estate Team

 What Should You Look for In Your Real Estate Team?How do you select the members of your team who are going to help make your dream of owning a home a reality? What should you be looking for?

Read More