Why You Need to Be Pre-Approved Before Buying A Home in Broward County
So you’ve found that perfect home and are ready to make an offer on it. Well, there’s one thing you should have on hand before you start looking. Hi, this is Natasha Burkett. And I’m here to tell you why it’s important to be pre-approved inBroward County before you start looking for your dream home.
You Will Know What Home You Can Afford
First, you know what home you can afford. This is important, because you don’t want to find a home, make an offer, only to find out that you can’t pay for it. Being pre-approved before buying a home allows you to search for homes in your price range.
Are You Qualified?
Second, you find out if you’re qualified for a mortgage. This is especially important if you’re self-employed or commission-based. Before you start to look for homes or make an offer, make sure you can qualify for a loan.
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 Natasha Burkett Homes is that we have relationships with lenders who will be able 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:
- 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.
The Seller Will Know That You Are A Serious Buyer
Finally, getting pre-approved before buying a home in Broward County will give you stronger position when submitting an offer for a home, especially if there are multiple offers. So having a pre-approval letter with an offer shows that you are a serious and ready buyer. This is Natasha Burkett, and as always, let’s make it a great home buying and selling day.