Why Buyers Should Get Pre-Approved
In today’s market the number of buyers looking for a home outnumbers the amount of homes for sale. Because of this, buyers find the need to standout by showing that they are serious about buying a home. The first step in doing this is getting pre-qualified or pre-approved for a mortgage before you start your search. This will not only help when you make an offer on a home but understanding how much you can spend will provide the confidence of knowing what type of home is within your reach.
In the “My Home” section of their website Freddie Mac states:
“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.”
Where do you start? First, you will need to select a lender and fill out a loan application. You will give them information pertaining to your debt, work history, credit, residential history, and how much of a down payment you will have.
Second, your lender will determine the best loan option for you based upon the information you provided. Your lender will discuss the different options for you and together you will decide on the best option for you. At this stage, your lender will provide you with a pre-qualification letter.
Next, you will need to find a real estate agent to work with. Most real estate agents will not show houses to buyers until they are pre-qualified or pre-approved. Pre-approval shows that you are serious about buying and will help the process once you submit an offer on a home that is accepted.
Sometimes buyers tend to overestimate qualifications for a mortgage (credit scores, down payment, etc.) and put off the home buying process. If you are ready to buy your dream home, you may be surprised at your ability to buy sooner than you thought.
Contact us today and we can help you start your journey to buying your new home!