The Financial Elements

Why pre-approval should be your first step
In many markets across the country, the number of buyers searching for their dream homes exceeds 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, knowing.

One of the many advantages of working with The Lifestyle Investor is that we have relationships with lenders 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 necessary information regarding

“your credit, debt, work history, down payment, and residential history.”
“This comprehensive and straightforward guide for home buyers answers the key questions most buyers have.”
Freddie Mac describes the ‘4 Cs’ that help determine
the amount you will be qualified to borrow:
01. Capacity
Your current and future ability to make your payments.
02. Cash or Cash Reserves
The money, savings, and investments you have that can be sold
quickly for cash
03. Collateral
The home, or type of home, that you would like to purchase.
04. Credit
Your history of paying bills and other debts on time.

You Do NOT Need 20% Down To Buy Your Home!

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.

The bottom line, many potential homebuyers overestimate the down payment and credit scores needed to qualify for a mortgage.

Buyers often overestimate the down payment funds needed to qualify for a home loan. While many believe that they need at least 20% down to buy their dream homes, the shocking truth is there are programs available that allow you to put down as little as 5%. According to the National Association of Realtors (NAR): “Over 70% of first-time homebuyers put less than 20% down to purchase their home.”






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