First Step To Buying a House

Your First Step to Buying a Home This Summer

shannonjones Buying a Home , Featured Articles , Home Tips , Long Beach Real Estate , Real Estate Leave a Comment

It’s no secret that many markets across the country, our local one especially, have seen the number of buyers searching for their dream home greatly outnumber the amount of homes for sale. This rise in demand  has created a highly competitive marketplace where buyers often need to distinguish themselves to come out ahead during the bidding process. A practical and proactive way to show you’re serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

First Step To Buying a House

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 their relationship with a network of lenders who can 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.”

First Step To Buying a House

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

First Step To Buying a House

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 home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. Beyond giving you a competitive edge, getting qualified and setting your budget will give you the confidence of knowing if your dream home is within your reach. If you are ready and willing to buy, you may be pleasantly surprised at your ability to take the next step toward buying this summer.

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