Why Getting Pre-Approved Should Be Your First Step When Buying A Home

The amount of CT buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive Connecticut marketplace where buyers often need to stand out. One way to show you are serious about buying your dream Connecticut home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Knowing your budget will give you the confidence of knowing if your dream Connecticut 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 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 the Connecticut market.”

One of the many advantages of working with a real estate professional at Dave Jones Realty 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:

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
4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show Connecticut home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential Connecticut home buyers overestimate the down payment and credit scores needed to qualify for a CT mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well. Contact a real estate professional at Dave Jones Realty who can assist with all of your Real Estate needs!