Why Mortgage Pre Approval is so Important

Home / Real Estate Tips / Why Mortgage Pre Approval is so Important

Why Mortgage Pre Approval is so Important

Obtaining a mortgage pre-approval is one of the best actions home buyers can take on the route to getting their dream home. In today’s market, the amount of potential buyers greatly outnumbers the amount of houses available, so competition is much greater. Having a mortgage pre approval is one of the best ways to impress sellers and get ahead of the competition.

It’s also very important to be aware of your budget and to know what you can spend. Knowing your budget will help boost your confidence with your home search regardless of whether you are in a competitive market or not.

Why Mortgage Pre Approval is so ImportantThe advantages of being pre-approved are laid out by Freddie Mac in the My Home section of their website. It’s explained that:

“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.”

The best way to prepare for your home search is to get help from your local real estate professional. Most of them should have connections with lenders who can also help you in the process of buying a home. Once you’ve selected a lender you’ll be required to fill out their loan application and provide any information they need such as work history, credit, etc.

These 4 C’s will determine the amount a home buyer can borrow as described by Freddie Mac:

  1. Capacity: Your ability to make payments now and in the future.
  2. Capital or Cash Reserves: Anything that can be sold right away for cash like savings and investments.
  3. Collateral: The type of home you are planning to purchase.
  4. Credit: A history that shows how reliable you are at paying your bills on time.

Why Mortgage Pre Approval is so ImportantHaving mortgage pre-approval before you jump into home buying will show sellers that you are serious about buying and may even speed up the process once your offer is accepted.

Bottom Line

A lot of potential buyers overestimate the down payment or credit score required to receive a mortgage. Be sure to speak with your trusted real estate agent about your options if you’re hoping to find that dream home today!

Worried about the direction home ownership is taking? Read Homeowners Regain Equity of Over 20% Report Reveals to learn more about the advantages of owning a property! Still not sure if home ownership is for you? Don’t miss 2 Reasons That You Shouldn’t Wait To Move Up To Your Dream Home Now! to make a more educated decision.

To learn about your options in real estate, allow Showcase Realty to assist you! Give us a call today at 704.997.3794 or send us a message here!

Recommended Posts
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt

Start typing and press Enter to search

Buying A Home Is Now 36% Cheaper Than RentingTop 5 Restaurants in Dilworth to Visit on Thanksgiving,Dilworth Homes for Sale,North Carolina