How to Buy a House – First Step is Pre-Approval

How to Buy a House

Mortgage Loan Pre-Approval Should Always Be Your First Step

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers with knowledge on how to buy a house 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.

Buying a House – Pre-Approval is the First Step

 

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 a home mortgage 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 by a home mortgage lender is one of many steps that will show home sellers that you are a serious home buyer, and it often helps speed up the process once your offer has been accepted.

In Conclusion

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. If you would like to know more about how to buy a house, available homes for sale in Lake Balboa or any other San Fernando or Santa Clarita Valley real estate, please reach out to HelpUSell real estate professionals at Southland Realty today!

 


 

Search homes for sale. We have complete Multiple Listing Service (MLS) of residential homes for Sales in Los Angeles, San Fernando Valley and Santa Clarita Valley.

 

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$598,000 - 3Br/3Ba -  for Sale in Sherman Oaks
$598,000
New
$559,000 - 2Br/1Ba -  for Sale in Lake Balboa
$559,000
New
MLS# SR18120126

17613 Cohasset Street
Lake Balboa, CA 91406

Property Type: Single Family Residence
$599,000 - 3Br/2Ba -  for Sale in Not Applicable-nr, North Hills
$599,000
Open House
New
MLS# 318001946

16332 Labrador Street
North Hills, CA 91343

Property Type: Single Family Residence
$379,000 - 2Br/2Ba -  for Sale in Lake Balboa
$379,000
Open House
New
MLS# SR18119500

16741 Vanowen Street Unit H
Lake Balboa, CA 91406

Property Type: Townhouse
$110,000 - 2Br/1Ba -  for Sale in Van Nuys
$110,000
New
MLS# SR18119429

7650 Balboa Blvd. Unit 112
Van Nuys, CA 91406

Property Type: Manufacture 433
$899,000 - 3Br/2Ba -  for Sale in Van Nuys
$899,000
Open House
New
MLS# 18346168

6860 Orion Avenue
Van Nuys, CA 91406

Property Type: Single Family Residence
$639,000 - 3Br/2Ba -  for Sale in Reseda
$639,000
New
MLS# SR18119247

7322 Lindley Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$580,999 - 4Br/2Ba -  for Sale in Reseda
$580,999
New
MLS# SR18119930

6612 Nestle Avenue
Reseda, CA 91335

Property Type: Single Family Residence
$499,950 - 3Br/1Ba -  for Sale in Lake Balboa
$499,950
New
MLS# SR18118801

16901 Covello Street
Lake Balboa, CA 91406

Property Type: Single Family Residence
$575,000 - 3Br/1Ba -  for Sale in Northridge
$575,000
New
MLS# SR18118899

8503 Newcastle Avenue
Northridge, CA 91325

Property Type: Single Family Residence
$589,500 - 3Br/2Ba -  for Sale in Valley Glen
$589,500
New
MLS# SR18113685

13922 Hamlin Street
Valley Glen, CA 91401

Property Type: Single Family Residence
$1,399,000 - 4Br/5Ba -  for Sale in Porter Ranch
$1,399,000
New
MLS# SR18118609

20412 Via Sansovino
Porter Ranch, CA 91326

Property Type: Single Family Residence
$379,900 - 2Br/2Ba -  for Sale in Valley Glen
$379,900
New
MLS# SR18118717

5900 Murietta Avenue Unit 204
Valley Glen, CA 91401

Property Type: Condominium
$610,000 - 3Br/2Ba -  for Sale in Van Nuys
$610,000
New
MLS# SR18118653

15447 Covello Street
Van Nuys, CA 91406

Property Type: Single Family Residence
$1,975,000 - 5Br/6Ba -  for Sale in Porter Ranch
$1,975,000
New
MLS# SR18118354

11945 Ricasoli Way
Porter Ranch, CA 91326

Property Type: Single Family Residence
$559,950 - 4Br/2Ba -  for Sale in Lake Balboa
$559,950
New
MLS# SR18118795

17156 Burton Street
Lake Balboa, CA 91406

Property Type: Single Family Residence
$889,950 - 5Br/4Ba -  for Sale in Porter Ranch
$889,950
New
MLS# SR18118472

20830 Sardinia Way
Porter Ranch, CA 91326

Property Type: Single Family Residence
$419,900 - 4Br/3Ba -  for Sale in Reseda
$419,900
New
MLS# SR18117973

8151 Canby Avenue Unit 6
Reseda, CA 91335

Property Type: Townhouse
$349,999 - 2Br/2Ba -  for Sale in Van Nuys
$349,999
New
MLS# SR18118035

14829 Sherman Way Unit 9
Van Nuys, CA 91405

Property Type: Condominium
$320,000 - 2Br/2Ba -  for Sale in North Hills
$320,000
New
MLS# SR18117652

8419 Orion Avenue Unit 1
North Hills, CA 91343

Property Type: Condominium
$900,000 - 4Br/3Ba -  for Sale in Northridge
$900,000
New
MLS# SR18116404

17432 Citronia Street
Northridge, CA 91325

Property Type: Single Family Residence