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Pre-Approval: Your 1st Step in Buying a Home

Monday, October 15, 2018   /   by Traci Roberts Jones

Pre-Approval: Your 1st Step in Buying a Home


Pre-Approval: Your 1st Step in Buying a Home | MyKCM


In many markets across the country, the number of buyers searching for their dream homes 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.


Even if you are in a market that is not as competitive, understanding 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 real estate professional is that many 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:



    1. Capacity: Your current and future ability to make your payments

    1. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash

    1. Collateral: The home, or type of home, that you would like to purchase

    1. 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.


Bottom Line


Many potential homebuyers overestimate the down payment and credit scores necessary 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.

Keller Williams Southern Arizona - Jones Real Estate Team
Traci Roberts-Jones
10445 N. Oracle Rd., Ste. 220
Oro Valley, AZ 85737
520-247-8250


Nova Home Loans
Ian Brannon
3430 E. Sunrise Dr. Suite 150
Tucson, AZ 85718
520-837-9949
NMLS#205989

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