Buying A House This Year This Should Be Your 1st Step

Dated: 01/14/2019

Views: 552

Image title



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 home buyers 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. Give me a call @ 908-705-5022

Want to Advertise on this Site?

Latest Blog Posts

3 Questions You Need To Ask Before Buying A Home

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs

Read More

How Do You Know How Much To Put Down On A Home

For many prospective home buyers, the down payment is the most

Read More

Its Time To Spring Ahead

Don't forget to set your clocks ahead one hour before bedtime this Saturday evening as Daylight Saving Time begins at 2:00 a.m. on Sunday, March 10.Many smart devices will make the

Read More

TEN COMMON MISTAKES OF FIRST TIME HOME BUYERS

When you’re new to the real estate market and looking to buy your first home, the process can be overwhelming. Here are ten mistakes to avoid when buying your first home.Not Getting Pre-Approved

Read More