Across the country right now, the number of buyers seeking homes far outnumbers the number of homes available.  Because of this, the housing market is super competitive and buyers often need to do something to stand out.  One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even in a less competitive market, knowing your budget will give you security of knowing if a home is within your reach.

One of the many advantages of working with a local Realtor is that many have relationships with lenders who will be able to help you with this process.  Once you have chosen a lender, you will need to fill out their loan application and provide them with vital information regarding your credit, debt, work history, down payment and residential history.

There are 5 Cs that aid in determining the amount you will be qualified to borrow:

  • Capacity: Your current and future ability to make 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 want to purchase.
  • Character: Your history of paying bills and other debts on time.
  • Conditions: Current interest rates and amount of principal influence lender’s likelihood of financing the borrower.

Getting pre-approved not only shows sellers you are serious, but also speeds up the process of completing the purchase once your offer has been accepted.

Many people overestimate the down payment and Credit Score needed to qualify for a mortgage.  If you are ready to buy, you may find yourself pleasantly surprised at what you can afford!  Contact Sandra Nickel and her team of professionals at 334-834-1500 and let them help you achieve your dream of home ownership today!