In many markets across the country, the amount of buyers searching for their dream home greatly outnumbers 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 Maclays out the advantages of pre-approval in theMy Homesection 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 themany advantagesof 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 Macdescribes 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.
Many potential home buyers overestimate thedown payment and credit scoresneeded 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. Give us a Call 305-785-1688 now.
Author:Gustavo Blachman Phone: 786-229-8009 Dated: June 10th 2016 Views: 315 About Gustavo: PROFESSIONAL QUALIFICATIONS
• Florida Licensed Real Estate Broker – Owner of Terrabella Realt...
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Terrabella Realty is a boutique operation with over 1 Billion dollars of closed sales over the past 10 years, We have experience in the South Florida real estate market and we have developed strategic alliances with Real Estate Firms in foreign countries like, Argentina, Colombia, Venezuela, Mexico, Ecuador, Canada, Russia, France, England and Israel, to name a few. We have over 80 sales associates ready, willing and able to assist on the sale of your property and we are experienced enough to help you price it right.
STEP 1 >> KNOW YOUR MOTIVATION Before you begin doing anyth
"Someone recommended Mr. Leo Gonzalez to help me with my house search. When I called him, he was inmediatly available and asked me what type of house I was looking for. He met me next day and only showed me houses that matched the criteria that I was looking for. Very punctual to all our appointments, Mr. Leo Gonzalez will always reply my e-mails or texts from his blackberry (so as soon as I asked him something, no matter what time it was he will answer inmediately), the way he presented himself was very professional, from the way he dressed to the way he talked. Very knowledgable. We found a house in less than 3 days. When it was time for me to make an offer, he negotiated everything, got me granite countertops, stainless steele appliances, the price went down thousands, he even negotiated with the loan processor so they could qualify me for a 100% loan. After we closed on the house, I couldn't wait in the office longer because I had to come back to work, he waited there and made sure that he received the house keys, then he drove to Brandon to drop them in my office. Bottom line, my experience with Mr. Leo Gonzalez was outstanding, I will recommend him to anyone, he definitely knows what he is doing"