First Step To Buying A Home Is Getting Pre Approved. In many markets 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 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.
Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if 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.”
First Step To Buying A Home Is Getting Pre Approved
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.”
Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:
- Capacity: Your current and future ability to make your payments
- Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
- Collateral: The home, or type of home, that you would like to purchase
- 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.
Call Us Now To Sell Your Home…
Office: 909.985.9392 or Text Us: 714.657.6634
Harvard: 5 Events That Must Happen For Housing To Recover
Interesting article from Rick Newman with Yahoo Finance. We have a long road to hoe before the US housing market will see a true recovery.
Merry Christmas…Happy Foreclosure…
I can't believe it's been 7 years this December. October always brings back memories...because that's when we realized there was no way we were going to come up with the money the mortgage company wanted to stop a foreclosure sale. Wow, was that an emotional holiday...
You Lease The Home of Your Dreams…Our Investor Buys
For families who want to rebuild, the Fresh Start Lease To Purchase (LTP) was designed to remove the largest single roadblock to regaining their dream home!
California AB 1393 Now Law
So what? This is fantastic news for struggling homeowners that are now free and clear of getting slapped with additional taxes for completing a short sale…yes…that “shortage” of what you owed and what was actually paid…is taxable income!
AB 1393 Provides Mortgage Debt Forgiveness for California
Passing California Assembly June 30, AB 1393 provides protections to California homeowners for debt incurred by a short sale. This bill mirrors the Mortgage Forgiveness Debt Relief Act of 2007 enacted by the Treasury for IRS ruling
HAMP Extended Through 2016
One of the best tools the government has given homeowners in trouble is this HAMP program…especially those Americans that needed to complete a short sale…HAMP’s HAFA program protects the homeowner in the short sale eliminating the recourse from mortgage companies.
This Is What’s Wrong With America
I am frustrated that we are the scape goats for backing federal mandated “gifts” to states to cover Congress’s struggles to meet “promised” money to fix “transit” problems.
Be careful what you wish for…cause it all rolls back to you and your pocket book.
Lease to Purchase Program
ot to often that we get excited about a new program. If you want to get into a home around the corner from your rental and just can't bear the thought of going through the rigorous lending and mortgage...
Mortgage -vs- Cash: What’s Best For You?
Most buyers are using some form of cash and mortgage to purchase a home.
Don’t wait until you have a Trustee Sale Date…Please call us!
If you see this post and know anyone, really, anyone, a family member, neighbor, co worker, anyone....that is having problems with making house payments have them contact us Now! We just received a call from a homeowner that was so distraught about a sale date set for...
BUY A HOME 1-DAY AFTER SHORT SALE, BANKRUPTCY or FORECLOSURE
Kris & Kim have $250,000,000.00 to buy homes for home buyers that want to buy a new home 1-day after a short sale, bankruptcy, foreclosure or deed-in-lieu. If you want to apply for your share of this money, contact Kris and Kim on their mobile 714.615.7605.
4 Steps to Purchasing a Home
The buying process can be overwhelming and intimidate even the most seasoned of buyers. Follow these 4 steps to success in purchasing a home
Altisource and OCWEN…Hmmm…All in the Family
Something fishy here…the majority shareholder in Altisource is also the Founder and Majority shareholder in OCWEN
Buyers…It’s Your Time To Buy…Homes Sales are at an 18 Month Low
One thing is always a sure thing…nothing is a sure thing!
April 2013…sellers pumped to ge their homes on the market and reap the return of the “sellers market”. April 2014…what? a 3rd bubble has burst…with home sales down at their lowest point in 1.5 years.
Increased Home Values are Not as They Appear
Thanks to Core Logic we can get a pretty clear picture of what is going on in our housing market.
Staggering…$120,000,000.00 Short Sale Located in Connecticut
The most expensive short sale ever
3 Home Buying Credit Myths
Myth #1: You need perfect credit to purchase a home.
Myth #2: Lenders have free rein in sharing your personal credit information.Myth #3: Lenders only use one scoring model that determines creditworthiness.
“The Great One” Selling His Thousand Oaks “Man”sion
Not often that I get excited about a home...this one is right in my comfort zone. Manly...yes! Hockey Hall of Famer Wayne Gretzky and his wife, actress Janet Jones, have fixed up their Thousand Oaks, CA mansion and are selling it for $10.5 million. Source: IMDb...