Why Getting A PreApproval Should Always Be Your First Step

Dated: 06/27/2017

Views: 163

Why Getting A PreApproval Should Always Be Your First Step

Image title

In our current market, the number of buyers searching for their dream homes greatly outnumbers homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. 

Given the current market and competition, sellers are choosing to negotiate offers where the buyer is able to prove that they are ready, willing and able to make a purchase. If an offer is submitted without a pre-qualification or pre-approval letter, a seller has no idea if you can actually purchase their home. If you were a seller, would you take your home off the market if you didn't know that the buyer could actually purchase your home? No, you wouldn't!

Another benefit of getting prequalified or preapproved is knowing your budget, which will also give you the confidence of knowing that your dream home is within your reach.

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 Gulf Winds Realty is that we have relationships with many lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out a loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes 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

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. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well. Get in touch with us today and let's get the ball rolling on getting you ready to buy your dream home! You can also click HERE to be connected with a lender specialist.

Gulf Winds Realty & Development


Want to Advertise on this Site?

Latest Blog Posts

11 Reasons To Sell Your House During The Holidays

11 Reasons to Sell Your House During the Holidays 11.) By selling now, you may have the opportunity to be a non-contingentbuyer in the spring, when many more homes are on the market forless

Read More

Real Estate Data You Need To Know

REAL ESTATE DATA1. 89% of buyers use a real estate agent.2. 56% of home buyers are put off by bad odors.3. 70% of home buyers are put off by any stains or wet patches on walls.4. 50% of homes sold

Read More

Debunking Myths To Home Buying

Debunking Myths To Home BuyingFinally ready to make the transition into home ownership? That's awesome, and in this exciting time you can be turning to friends and family for an insight into the

Read More

Why Rent When You Can Buy A Home

Why Rent If You Can BuyHome ownership rates are the lowest they have been in the last 50 years. Yet a large portion of Americans are still renting properties, instead of enjoying a home of their.

Read More