In many markets across the country, the number 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.
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:
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 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.
Author:April Stroud Phone: 803-920-6899 Dated: July 11th 2017 Views: 162 About April: ...
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Hello! I operate Resource Realty Group, a dynamic Real Estate Brokerage with experts specializing in every type of property in South Carolina. My firm is known as the "Little Big Guys", meaning our agents have the same tools and connectivity as larger firms with a much more potent marketing product to enhance the purchasing and selling experience. When our company lists your real estate we really get to know each property and emulate a potential buyer's shopping process to spotlight "must have" features. If you are buying, we use the same technique to identify perfect properties, verify physical and financial conditions, and negotiate a successful contract. Customized representation is a the fun part of our business and a critical element to ensure a pleasurable real estate experience for you.
My talents shine when it comes to investment properties, bank owned assets (REO), and gaining exposure for any properties we represent. I love complex transactions and creatively resolving issues to bring all parties together for one happy closing! Other than real estate, if it involves fishing, traveling, Pearl Jam, or sports, I'm interested in it.
I won't bore you with countless stats of all the successful transactions my company has achieved or the $100+ millions of closed sales data. That's in the past. Your next real estate transaction is now and myself or my team are here to listen to your needs and make them happen! Just call me at 803.513.4247, email Dustin@DustinJohns.com or search ResourceColumbia.com.
In today's blog post I will be discussing something very importan
"Dustin has always been a master of his craft. His industry knowledge, market research process, and situation management are second to none. He has assisted myself and my family on multiple real estate transactions, and we will always turn to Dustin for advice and service for all our future real estate needs."