Buying a House This Year? This Should Be Your 1st Step!
In many markets across the country especially Southwest Florida, the number of buyers searching for their dream homes outnumbers homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your home in Naples is to get pre-qualified. Also referred to as getting pre-approved for a mortgage before starting your search. When Glenna is working with buyers this is absolutely the first step she has them take before presenting an offer. This lets the sellers and their listing agent know the buyers are serious.
House Hunting in Naples? Get an Approval Letter from Your Lender
Pre-Approval is key when beginning your home search. Before you go House Hunting Get Pre-Approved. Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not 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 get pre-approved with your lender before making an offer on a home. Pre-approval clarifies how much home you can afford. Also, it can help you move faster through the process with more confidence. Your Lely Resort and Greater Naples real estate professional will help guide you in the right direction.
There are many advantages of working with a Lely Resort and greater Naples real estate professional. Your agent will have many have relationships with lenders to help you through 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 credit: Your history of paying bills and other debts on time
4) 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.
