Throughout the country, buyers who are searching for their dream homes greatly outnumber the amount of homes for sale. Because of this there is now a competitive marketplace where buyers need to really stand out. Getting pre-qualified or pre-approved for a mortgage can show how serious you are when putting in an offer on your dream home.
Even if you are in a area that is not as competitive, knowing your budget can give you the dream home you want is comforting.
Freddie Mac lays out the advantages of pre-approval in the My Home section on 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.”
Working with a local real estate professional has many advantages. For one, they have relationships with lenders who can help you thru the lending process. Once a lender is selected you will fill out a loan application so that they have the important information regarding “your credit, debt, work history, down payment and residential history.”
Freddie Mac gives 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, this 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.
Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.
In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.
As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.
We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.
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