2016

Serious About Home Buying? Get Pre-Approved

In many markets across the country, the amount of buyers searching for their dream home greatly out numbers the 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.

But even if you are in a market that is not as competitive, knowing your budget will give you the confidence to know 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.”

There are advantages working with a local real estate professional they 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.

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 as well.

As stated in this article by Keeping Current Matters, there are many areas in the country where the amount of buyers searching for their dream home greatly out numbers the amount of homes for sale. Well unfortunately we are in one of those areas. The amount of inventory is at 2.6...read this.

So if you want to purchase a home contact The Militello Team today and we can put together a strategy to make it happen.