Dec 11 2017 5018 1

Dated: 12/11/2017

Views: 1

Why Getting Pre-Approved Should Be Your First Step

Why Getting Pre-Approved Should 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, knowing 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 as well.

Blog author image

Jeri Patrick

In today’s complex and difficult real estate market you need a professionals who will do whatever it takes to market and sell your home. Jeri Patrick has a team with an established history of succes....

Want to Advertise on this Site?

Latest Blog Posts

Dec 11 2017 5018 1

Why Getting Pre-Approved Should Be Your First StepIn many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale.

Read More

Dec 8 2017 5018 1

3 Tips for Making Your Dream Home a Reality [INFOGRAPHIC] Some Highlights: Realtor.com shared their “5 Habits to Start Now If You Hope to Buy a Home.” Setting up an

Read More

Dec 7 2017 5018 1

The #1 Reason to List Your House Today!Many people believe that selling their house during “the spring buyers’ market” is the best thing to do. Their reasoning is that there will be

Read More

Dec 6 2017 5018 1

Home Prices Up 7% from Last YearAccording to CoreLogic’s latest Home Price Index, national home prices have appreciated by 7.0% from October 2016 to October 2017. This marks

Read More