Apr 25 2018 14025 1

Dated: 04/25/2018

Views: 94

 

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

Richard Hewitt

As a life long resident of St. Clair County, only having moved away long enough to serve honorably in the U.S. Navy, I have the local knowledge to help guide my clients to a great outcome. I bring a t....

Want to Advertise on this Site?

Latest Blog Posts

Why Join Realty Executives

Why Realty Executives?There are a lot of agents right now looking to keep more of their commission in their pocket. Realty Executives was the first 100% commission model company in the(

Read More

Check Out This Great Deal

Buy or Sell with an Executive and use our Moving Truck for FREE!!!!!Exclusively at Realty Executives Home

Read More

Some Quick Links That Could Help You Find A Great Deal In St Clair County

 Listed below are some "Quick Links" that show you specific lists of potential "Propertunities" In St Clair County!!!!If you're looking for a great deal on a home or investment property in the

Read More

Apr 25 2018 14025 1

 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