Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether 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.”
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. In this
market you want the best advantage you can get.
The bottom line:
Contrary to popular belief, Winter is a great time to buy a Boston home.
If you are searching for the perfect Boston home,
let a local expert help you out. Buying a home is an exciting and complex
adventure. I take pride in being a local expert and would love to show you
around our fine city. Contact a Boston, MA real estate agent to get the buying
process underway!
Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com
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