In the Boston condo market. the number of buyers searching for their dream condominium outnumbers the number of condos 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 a Boston condo is to obtain a pre-qualified or pre-approved for a mortgage before starting your condo search.
Even if you are not in the market yet, knowing your budget will give you the confidence that once you’re ready to search for your dream Boston condos 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.”
One of the many advantages of working with a Boston real estate broker is that we have relationships with 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
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
The home, or type of home, that you would like to purchase
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 Boston condo 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. A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be mortgage qualification.
For many, the mortgage process can be scary, but it doesn’t have to be!
In order to qualify in today’s market, you’ll need to have saved for a down payment (73% of all buyers made a down payment of less than 20%, with many buyers putting down 3% or less), a stable income and good credit history.
Throughout the entire home buying process, you will interact with many different professionals, all of whom perform necessary roles. These professionals are also valuable resources for you.
Once you’re ready to apply, here are 5 steps that Freddie Mac suggests you follow:
- Find out your current credit history & score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO® Score of all closed loans in September was 724, according to Ellie Mae.
- Start gathering all your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
- Contact a professional – your real estate agent will be able to recommend a loan officer that can help you develop a spending plan, as well as determine how much home you can afford.
- Consult with your lender – he or she will review your income, expenses, and financial goals to determine the type and amount of mortgage you qualify for.
- Talk to your lender about pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change), and demonstrates to home sellers that you are serious about buying!
Do your research, reach out to Ford Realty agent, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a Boston condo owner.
Buying a Beacon Hill condo for sale
- Tips on buying a Beacon Hill condo
- Boston Beacon Hill condo buyers how to beat all cash offers
- 5 tips on buying a Beacon Hill condo for sale
- Benefits of buying a Beacon Hill condo
- Design tips for Beacon Hill condo buyers
- Boston Beacon Hill condos for sale 5 must know terms
- The difference between a Beacon Hill condos and a Beacon Hill loft
- Common mistakes when buying a Beacon Hill condo
- Buying a Beacon Hill condo with kids
- Is it time to ditch my Beacon Hill condo agent?
- Beacon Hill condos for sale: Do I need 20% down?
- 3 signs you’re going to buy a Boston Beacon Hill condo
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- How to select a Boston Beacon Hill condo agent
- Boston Beacon Hill condos for sale downpayment
- Boston Beacon Hill condos finance
- Beacon Hill condos for sale what is negotiable
- Beacon Hill condos for sale: What it take to get a mortgage.
- Boston Beacon Hill condos for sale. Understand the condo association
- How much do Boston Beacon Hill condos cost?
- Beacon Hill
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- Boston Beacon Hill condos the importance of high owner occupancy
- Why you should buy a Beacon Hill condo off season
- What do these Boston Beacon Hill condo terms mean?
Buying a Downtown/Midtown Boston condo for sale
- Downtown Boston condo buyer mistakes
- Boston condos for sale: Tips for Boston Midtown condo buyers
- Why people are moving into Downtown/Midtown Boston condos
- Boston Midtown and Downtown up-and-coming neighborhoods
- Boston luxury condo amenities Boston high rise condo buyers like
- Boston Downtown/Midtown on the rise
- Advice for first time downtown Boston condo buyers
- What code words should I know when buying a downtown Boston condo?
- How to select a downtown Boston neighborhood to buy a Boston condo
- Why make Downtown Boston your first home?
- Tips you should know before moving into a Downtown/Midtown condo for sale or rent
- Why young professionals are buying Boston Midtown/Downtown condos
- Boston Midtown condo sales volume
- Boston Midtown condos benefits of urban living
- Boston Midtown condos with a view
Updated: November 2018