want to buy a home? time to get pre-approved.


During spring and summer, we see an influx of buyers competing for the same properties. An active marketplace demands that buyers set themselves apart from each other. One of the easiest ways to do that is to show how serious they are about purchasing a home. Getting pre-approved for a mortgage demonstrates dedication, expedites the loan process and provides an accurate view of the buyer’s budget. To us, starting the buying process with a pre-approval is an absolute must. Otherwise, you’re going into the market blind to what you can afford.


How it Works

Freddie Mac describes the ‘4 Cs’ that help determine the amount buyers can qualify to borrow:

  1. Capacity: Your current and future ability to make your payments. This includes looking at your employment and employment history.

  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash if need be.

  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.

The whole thing can seem a little daunting. However, this is where working with a real estate professional comes into play. They often work with trusted lenders who can help agents walk their clients through the process. Mostly though, it’s merely a matter of filling out a form and providing important information. It’s absolutely worth it to show sellers how serious a buyer is, and subsequently, speed up the sale once an offer has been approved.


Bottom Line

Credit scores and down payments are important, but they’re not the only factor in determining whether or not potential home-owners can afford to purchase a home. If you think you are ready to buy, you may be pleasantly surprised at your ability to do so. Contact us TODAY for more information.