Why Preapproval Should Be A Buyers First Step

Dated: 03/23/2017

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Since the number of houses outnumbers buyers dramatically, you might need to stand out. The first, and simplest, is to get pre-approved/pre-qualified.

What is pre-approval/pre-qualification?

Pre-approval/pre-qualification is where you supply a banker/lender with your finances which they can take to evaluate the mortgage amount you may be qualified for. Your realtor can set you up with a lender who can give you a better picture of your budget. Freddie Mac, a mortgage loan company, lays out the 4 Cs of determining the amount you will be approved of on their site in the My Home section.

Capacity- Current and future ability to make payments.

Capital/Cash Reserves- Money and investments that can be sold for cash.

Collateral- The home or home type you are wanting to buy.

Credit- Payment history.

Conclusion: Sit down with a lender to get a more accurate representation of the amount you can loan early to boost your confidence and ground you in the reality of what you can and cannot afford.

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Julie Baldino - Owner-Managing Broker

Julie Baldino is a seasoned veteran of the Pacific Northwest real estate industry, and has consistently been in the top 10% in sales for over a decade in 2 states. In order to accommodate a rapidly ex....

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