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

Dated: 03/05/2019

Views: 21

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 Can Help You Find A Great Deal In Boston

Down below are some 'Quick Links' that shows you a specific list of Propertunities in Boston.If you're looking for a great deal on a home or investment property in or around Metro Boston area be

Read More

How One Dorchester Nonprofit Is Helping First Time Homebuyers Get A Mortgage

The neighborhood of Savin Hill in Dorchester. David L Ryan / Globe Staff PhotoMegan Turchiwww.Boston.com Staff Follow @meganturchiApril 22, 2016 10:05 amView Article PageWhen Shalaye Camillo

Read More

36 Msgr Patrick Lydon Way Pet Friendly Condo Dorchester Ashmont

#02124 #ashmontstation #peabodysquare36 Msgr. Patrick J Lydon Way, Dorchester, MA 02124This unique, pet friendly condo home boasts 1155 sq. Ft., 2 large bedrooms, a huge fireplace living room,

Read More

7 Things To Avoid After Applying For A Mortgage

7 Things To Avoid After Applying for a Mortgage!Congratulations! You’ve found your Boston home to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to

Read More