In many areas, competition for each property on the market is extremely strong, so standing out from the crowd is a must for buyers who wish to secure their dream home.
National estate agents Leaders has an average of 10 buyers for each available property, meaning serious buyers must be able to present themselves as attractively as possible to both sellers and agents.
One key way to achieve this is to get pre-approved, which means being qualified by a mortgage lender prior to starting the search for a place to live.
Kevin Shaw, national sales director at Leaders, says: “A pre-approval is incredibly important as it means a mortgage provider has analysed a person’s credit history and credit score and given the green light to them borrowing a specific amount.
“Essentially, it demonstrates that a buyer can afford the amount required to buy a home, meaning they are less likely to pull out of a purchase as a result of being unable to raise the funds. This makes pre-approved buyers extremely attractive to sellers.
“It also works in favour of buyers themselves who are able to find out for certain what they can borrow before they start searching for a property, providing them with greater confidence and ultimately allowing them to move faster.”
Pre-approval is one of a number of steps that shows sellers and estate agents a buyer is committed to purchasing a home.
Buyers should consider the four Cs that will help them to work out their borrowing potential.
• Capacity: A person’s current and future ability to make mortgage payments
• Capital or cash reserves: Money, savings and investments that can be used for a deposit
• Collateral: The home, or type of home, that a buyer would like to purchase
• Credit: A history of paying bills and other debts on time
Kevin adds: “Many buyers overestimate the deposit they need to purchase a home and underestimate the amount they may be able to borrow. As such, talking to an expert is the ideal starting point in any search.”
For expert advice on mortgages, Leaders is pleased to be partnering with the award-winning Mortgage Advice Bureau (MAB). Their knowledgeable local advisers can search over 11,000 different mortgages from a selection of 90 different lenders to take the hassle and stress out of finding the right mortgage for you. For more information visit www.mortgageadvicebureau.com/leaders.