On Cape Cod and elsewhere, housing inventory remains low. This has led to a very competitive marketplace where buyers need to differentiate themselves to show that they are serious about making a purchase.
One way buyers can stand out from their competition is to be pre-qualified or pre-approved for a mortgage.
If nothing else, being pre-approved lets you know how much you can afford and can help your Realtor focus the search on homes that are in your price range.
Freddie Mac outlines 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 great confidence in competitive markets.
In order to issue pre-approval letters, lenders will ask potential buyers for their credit, debt, residential, and work histories, as well as what funds are available for down payments.
According to industry resource KCM, many potential home buyers over estimate the down payments and credit scores that they need to qualify for a mortgage.
The lending landscape has changed over the years and family members or friends who haven’t applied for a mortgage in years — or ever — aren’t the experts.
If you’re thinking about buying a home for the first time or making a change from where you currently live, talk to a reputable lender.
Don’t have a lender?
Today Real Estate (TRE) has a partnership with Residential Mortage Services, which provides home financing in 22 States. A local Sales Manager and staff are available at all TRE locations to respond to your questions and help with pre-approvals and mortgages.
Their The Markets in a Minute provides a brief and understandable summary of weekly financial news and its impact on the real estate market. Click on the link to check it out.
Enjoy your week…
Mari and Hank