FIRST STEP TO BUY DREAM HOME
In many states 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 situation where home buyers often need to raise their hand really up high.
One way to show you are serious about buying your home is to get pre-qualified or pre-approved for a mortgage loan asap… before starting your search.
Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing if your dream home is within your reach it will also give you a starting point and show you the areas you need to work to make this dream possible.
“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.” It will also benefit you at time of placing an offer because the home seller will know you are capable and serious about buying their house.
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 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.”
Here are 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
Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. There are many loan programs that will help you finance your dream home. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so. Is not as difficult as it seems. Contact us today.