Some experts say you may be qualified to purchase real estate without realizing it.
After receiving your application, along with the required paperwork, lenders will evaluate the four Cs:
Capacity: Your income, employment history, savings, and monthly debt payments — such as credit card charges and other financial obligations — help lenders determine whether you have the means to take on a mortgage comfortably.
Capital: The money and savings you have on hand, plus investments, properties, and other salable assets.
Collateral: The value of the home that you plan to buy.
Credit: Your bill and debt-paying record.
More loan application tips can be found at myhome.freddiemac.com.
“You have choices, so interview lenders to compare costs,” said Christina Boyle, senior vice president and head of single-family sales and relationship management at Freddie Mac.
She also recommends getting the process started early. “Getting pre-approved for a loan can help you shop with confidence.”