Buying A House This Year This Should Be Your 1st Step

Dated: 03/05/2019

Views: 40

Buying a House This Year? This Should Be Your 1st Step!

Buying a House This Year? This Should Be Your 1st Step! | MyKCM

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:

  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 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.

Blog author image

Shalaye Camillo

At the forefront of Vital Source Realty is its founder and CEO, Shalaye Camillo. Her passion for real estate, education and entrepreneurship is the backbone of the company. While her days are filled w....

Want to Advertise on this Site?

Latest Blog Posts

Some Quick Links That Could Help You Find A Great Deal In Your Area

Down below are some "Quick Links" that shows you specific lists of "Propertunities" in your area!If you're looking for a great deal on a home or investment property in your area. Be sure to bookmark

Read More

Preparing To Sell Top 10 Tips To Maximize Your Sales Price

Preparing to Sell: Top 10 Tips to Maximize Your Sales PriceSelling your house for top dollar is no easy feat.  There are many details and moving parts; Some tasks might just get left off the

Read More

10 BestKept Secrets For Selling Your Home

10 Best-Kept Secrets for Selling Your Home Tricks of the trade to help you get top dollar when selling your  home.Selling Secret #10: Pricing it rightFind out what your home is worth, then

Read More

Just Listed 61 Woodlawn Ave Chelsea MA 02150

Just ListedContact me for more information or to schedule a showing.61 Woodlawn Ave, Chelsea, MA 02150Welcome to home to 61 Woodlawn Ave, Chelsea. Located in the Prattville neighborhood right on the

Read More