Getting a Mortgage in a Competitive Market

Discover 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.”

Work with a Professional

Your local real estate professional has many relationships with lenders which is one of the many advantages of working with them. These lenders 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.”

The Four C’s that Help you Determine the Amount you Can Borrow

Consequently, Freddie Mac helps consumers by describing the 4 C’s. The ‘4 Cs’ help determines 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

Buyers can show homesellers that they are serious by getting pre-approved. is. It often helps speed up the process once your offer has been accepted.

Bottom Line

In a nutshell, many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do

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