Getting a Mortgage Pre-Approval

With mortgage interest rates expected to go down in 2024, more people will be looking for homes to buy. If you are one of them, you are going to want to stand out to sellers should you be competing for a home. One way to show that you are serious about buying your dream home is to get pre-approved for a mortgage before starting your search. Even in a less competitive market, knowing your budget will give you the security of knowing if a home is within your reach.

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 chosen a lender, you will need to fill out their loan application and provide them with vital information regarding your credit, debt, work history, down payment and residential history.

There are 4 Cs that aid in determining the amount you will be qualified to borrow:

• Capacity: Your current and future ability to make 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 want to purchase.
  
• Credit: Your history of paying bills and other debts on time.

Getting pre-approved not only shows sellers you are serious, but also speeds up the process of completing the purchase once your offer has been accepted.

Many people overestimate the down payment and credit scores needed to qualify for a mortgage.  If you are ready to buy, you may find yourself pleasantly surprised at what you can afford! What Credit Scores Do You Need to Buy A House?

Looking to buy or sell a home in the Huntsville area?  Let professional Realtor Mike Manosky help you with all your real estate needs!  Give him a call today at 256-508-0211!