Buying a home is a complicated process and the financial aspects are too tough to navigate without an expert. That’s why many of our clients know how much we value our friends at Churchill Mortgage, particularly Michael Brown and his team. Michael helps home buyers reduce both time and stress and is an invaluable resource. He has graciously offered to provide insight for our blog through a series of posts where he will give mortgage tips that are sure to help home buyers throughout the Nashville area!
In this first post, Michael addresses how to determine if a home is within your reach.
Starting the mortgage process
In many markets, especially here in middle Tennessee, 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.
Even if you are in a market that is not as competitive, 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.”
It is important to meet with a Lender to determine if you are qualified to purchase, how much you can afford to buy, and which programs are available to accomplish your goals.
The 4 Cs
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 besold 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.
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.
Contact Michael Brown at Churchill Mortgage and get pre-approved today!
Michael.firstname.lastname@example.org or 615-516-8157
Interested in viewing houses in the Nashville area while going through the pre-approval process? Call DeSelms Real Estate at 615.550.5565!