Jan 14 2019 26715 1

Dated: 01/14/2019

Views: 106

Buying a House This Year? This Should Be Your 1st Step!

Buying a House This Year? This Should Be Your 1st Step! | Keeping Current Matters

In many markets across the country, the number of buyers searching for their dream homes 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 that 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 not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not 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 through 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 homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today.

information from Keeping Current Matters. 

Blog author image

Mary Phillips

I was born and raised in Missouri. Raised 4 wonderful children along with about 50 other kids in the show me state. My passion has always been to serve others and have fun doing it. Which is why....

Latest Blog Posts

AVOID These Top Deal Killers

  Falling in love is exhilarating. It can also be a bit scary, especially when a home has captured your heart. What if something goes wrong and you end up not spending the rest of your

Read More

Fall Is The Best Time To Buy A Home

Fall is the best time to buy a house.  Sellers are more inclined to be more motivated to sell in the Fall.  The peak seasons Spring and Summer have passed.  With that being said, they

Read More

What You Need To Know About The Mortgage Process

What You Need to Know About the Mortgage Process [INFOGRAPHIC] 1.2KSHARES 1.1K 66 35 87 https://files.keepingcurrentmatters.com/wp-content/uploads/2019/10/02133211

Read More

10 Things You Should Never Say To Your Real Estate Agent

Let’s be clear on one thing: by nature, real estate agents are not fragile beings. We’ve heard it all. And for the most part, we have a great sense of humor about things. In other words,

Read More