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. A Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, especially 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:
- 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
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.
If you are in the need of an experienced, full time agent, then give me a call to discuss your Real Estate needs.
Howard Hanna Real Estate
1090 Freeport Road * Fox Chapel, PA 15238
Direct Phone: (412) 889-6661