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:
- 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 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.
Looking for more information on buying a home?
Click Here for Buyer Resources.
Looking for a lender? I highly recommend Tony Latos, with Guaranteed Rate Affinity. Tony is also Coldwell Banker’s VP of Mortgage Lending.
“Your home mortgage is often viewed as a dry process based on rates, ratios and guidelines. But for over 30 years, I have helped my customers view their mortgage differently and see the transaction’s potential to dramatically shift their financial situation. My chief goal is to empower clients to make effective financial decisions by showing them a new way of thinking about their mortgage. I take time to show clients how their financing decisions will affect their financial wellness today and in the future. As a seasoned veteran of the California home lending industry, I’m ready and excited to serve my next customer and put my experience to work for you.”- Tony Latos
Direct Phone Number: 408.608.5731
Make sure to let him know that Nicole sent you!
17400 Northwoods Blvd
Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associated, not employees.© 2019 Coldwell Banker Residential Brokerage. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Owned by a subsidiary of NRT LLC. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC.