Here in the greater Los Angeles area, the number of buyers searching for their dream homes greatly outnumbers the number 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.
Understanding your budget will give you the confidence of knowing if your dream home is within your reach. Also, you can save time and stress by only looking at homes that are appropriate for your budget. I work with several lenders that can assist you in getting pre-approved. Call or text me at 310-714-9703 to talk more about the process.
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. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so. I can help you find the right home at the right price anywhere from Long Beach to Lawndale. As your local real estate expert for Torrance, Redondo Beach, Gardena, Hawthorne, Manhattan Beach and Hermosa Beach, Joe McMahon is the one to call.
KW Beach Cities Realty
Accredited Property Valuation Specialist
Certified Negotiation Expert
Working with a trained professional will save you time, money and stress.