Pre-Approval Should Always Be Your First Step When Purchasing A Home In Kaufman, TX
If you are considering purchasing a home, even if you have to sell your current home first, you will definitely want to get pre-approved for a home loan first.
In Kaufman, just like in many markets across the country, the number of buyers searching for their dream homes outnumber 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-qualified or pre-approved for a mortgage before starting your search.
While there is not much difference between the pre-qualification and pre-approval letter, the pre-approval provides stronger proof to the seller that the buyer will be able to close because more due diligence has been done by both the buyer and the lender to prove purchase ability.
Even if you are in a market that is not as competitive, knowing your budget, which will be provided by your lender, 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:
- 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.
Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. In addition many lenders have programs that can help with down payment and closing costs! If you are ready and willing to buy a home in Kaufman, you may be pleasantly surprised at your ability to do so.
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