Why getting pre-approved should be your first step

    The market is getting more and more competitive with the number of buyers outweighing the amount of homes for sale. Buyers need to stand out, and one way to do so is to be pre-qualified and know your budget. Be ready to make an offer with confidence and show sellers that you are serious. It can also make the process easier and speed up closing.

     

    Many buyers overestimate the down payment and credit scores needed to qualify for a mortgage today.  After speaking with a lender, you may be surprised at your ability to purchase a home. You will need to provide information regarding your credit, debt, work history, down payment and residential history.

     

    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.”

     

    Freddie Mac also 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.

     

    One big advantage of working with a local real estate professional is that many have relationships with lenders that can help you through the process. At West Group Real Estate, we can help you understand the home-buying process and walk you through the steps to purchasing your next home.  Stop by or call 208-787-4554 to speak with a qualified agent.

    Search land and homes: http://www.tetonpropertysearch.com/

    Trackback from your site.

    Leave a Reply