July 6, 2017 | Bob Myers
In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the amount 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-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.”
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:

  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.

Please  consider The Myers Team your  resource for all things real estate.  We  have over 30 years of real  estate experience, specializing  in the  Montgomery County area.  If you  are refinancing, want a  recommendation, need a service provider or just have a home related question,  please  give me a call at 301-910-9910 or email me at bobmyersteam@gmail.com.


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