Getting Pre-Approved Should Always Be Your First Step

In many markets across the country, the number of buyers searching for their dream homes greatly 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 you are serious about buying your dream home is to get pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, understanding your budget will give you the ability to shop with confidence, and you will find comfort in knowing your dream home is within your reach.

As Freddie Mac explains in the 'My Home' section of their website:

So, what does the Pre-Approval process look like?

To get started, you will fill out a loan application and provide us with important information regarding your credit, debt, work history, down payment and residential history.  This helps us to understand your story in depth, so we can provide you with the financing scenario that best fits your needs, and goals.   We take a look at what is called “The 4 C’s”,  that help us to determine the amount you are qualified to borrow.

What are the 4 C’s?

• 1Capacity: Your current and future ability to make your payments
• 2Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
• 3Collateral: The home, or type of home, that you would like to purchase
• 4Credit: 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.