Why Getting Pre-Approved Should Be Your First Step

Real Estate Agent with Coldwell Banker Real Estate BRE# 01411020

In many markets across the country, the amount of buyers searching for their dream homes greatly outnumbers the amount 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.

Knowing your budget will give you the confidence of knowing if your dream 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 competitive markets."

One of the many advantages of working with a local Irvine real estate professional is that many have relationships with lenders who will be able to help you with this process. I work closely with an incredible team to help our clients get into their dream homes. 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 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 as well. Let's get together and chat about your real estate dreams.


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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Home buyers in your area should read this and call you to be their agent.

Dec 17, 2016 05:12 PM #1
Desare Kohn-Laski Skye Louis Realty
Skye Louis Realty - Coconut Creek, FL
Residential Real Estate

Pre-approval is an important process. Your 4 Cs says it all. Getting pre-approved shows that the home buyers has the capacity to buy the house.

Thanks Debbie Sagorin for this wonderful post!

Dec 17, 2016 05:45 PM #2
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

I have seen many people get heart broken when they had no idea of what they could afford to buy

Dec 17, 2016 05:45 PM #3
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA

I only work with clients that have been pre-approved. 

Dec 17, 2016 05:53 PM #4
Gloria Valvasori, Accredited Senior Agent
REAL Experience | REAL Commitment | REAL Results!

Hi Debbie Sagorin I often advise perspective clients to get their financing pre-approval as it is important to have that information PRIOR to house shopping. They could fall in love with a house, only to find out they can't afford it... Its always good to be the buyer's agent when preseneting an offer and be able to tell the Seller  my buyers have been pre-approved and their financing is in order.  It makes a difference!

Dec 17, 2016 06:09 PM #5
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Debbie Sagorin

Marketing Irvine to the Highest Level
Find out how much I could sell your Irvine home for!
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