In this article: How To Get Pre-Approved For A Mortgage, we’re covering a few home buying basics, and why it’s important to seek a full loan pre-approval before walking into the first open house.
• What is A Mortgage Pre-Approval anyway?
• Why Do I Need To Get A Pre-Approval Anyway?
• Where Do You Find A Lender to Get Pre-Approved?
• Does Getting A Pre-approval Guarantee You A Loan?
• What information Do I Need To Get A Pre-Approval?
• What Happens If I Don’t Qualify For A Pre-Approval?
The above short list of questions may seem overwhelming, but they’re really not that bad. Take a deep breath. We’ll get through this together. I know shopping for homes is a lot more exciting than collecting W2s, tax returns, and paycheck stubs, but it’s a necessary step that cannot be avoided when you’re interested in buying real estate. So, here we go!
What is a Mortgage Pre-Approval anyway?
A mortgage Pre-Approval is a letter your loan officer or mortgage broker will give you and your Realtor stating how much of a mortgage or money you can borrow from a lender towards a home purchase. Simple. The loan amount is based on a number of factors including your income, credit information, work history, outstanding debt, late payments, and money you have stuffed away towards a down payment. Most Pre-Approval letters are good for thirty to sixty days and will need to be updated if we don’t find a home you’d like to buy within those timeframes.
Why Do I Need To Get A Pre-Approval?
There are many specific reasons why getting a Pre-Approval is a necessary first step when preparing to home shop. The most important reason is without a Pre-Approval letter you will not know “how much” home you can afford. Just because you make a respectable salary that alone won’t necessarily qualify you for a home, or just excellent credit alone will not guarantee a loan. A Pre-Approval letter will also help your Real Estate Agent prove to seller’s that you’re qualified for writing an offer on their house. I’m a Realtor who works with both home buyers and sellers, and I never allow my sellers to accept an offer from a buyer who as not been pre-approved for a loan. If a home buyer hasn’t made the effort to get a Pre-Approval letter from a lender, a seller would be wise to question how serious the home buyer is about buying their property. Make sense?
Where Do You Find A Lender to Get Pre-Approved?
I work with Joe Tishkoff from Skyline Home Loans in Calabasas, CA and Joe serves all of Los Angeles area homebuyers to help get pre-approval letters. Joe has a very user-friendly online approval process, which is fast and easy to navigate. If you prefer the old-fashioned way, Joe would be happy to jump on a call with you to start the Pre-Approval process.
Does Getting A Pre-approval Guarantee You A Loan?
Nope. Sorry. Nothing is a sure thing in life, and if anyone tells you different most likely they’re selling you something not worth its weight. Even if you receive a Pre-Approval letter from a lender there’s no 100% guarantee you’ll be locked into a specific rate or loan program. I have worked with a few lenders who have screwed up by not including the HOA fee into a loan application and my buyers couldn’t afford the property five days before our scheduled closing date. Regardless, these types of hiccups I’ve never experienced while working with Joe Tishkoff from Skyline Home Loans. Joe and his team are very thorough to make sure you get the best loan program available for your unique situation.
What information Do I Need To Get A Pre-Approval?
Joe Tishkoff will ask you for general information about your work and financial history. If you are planning to buy the property with someone else like your spouse or relative Joe will need their information too. Once Joe understands your specific needs he’ll request your social security number and run your credit. Within a short time, Joe will be able to determine if you’re Pre-Approved for a loan. That’s it! Wasn’t too painful, uh?
What If You Can’t Get Pre-Approved?
Such as life, not everyone applying for a Pre-Approval will become approved for a mortgage immediately. What does this mean to you? Joe Tishkoff will help you create a roadmap and strategy for how to prepare your financial responsibility and what it will take to become pre-approved.
You may have to work to improve your credit score. Maybe your credit report is reflecting inaccurately. Maybe you’re carrying a lot of credit card or student loan debt on your shoulders. These are just hypotheticals and ask Joe for tips on what you need to be qualified for the home you want to buy.
Your Los Feliz Real Estate Professional
This article, How To Get Pre-Approved For A Mortgage, was provided by Glenn Shelhamer of The Shelhamer Real Estate Group. If you are selling your Los Feliz home, I have a comprehensive marketing plan, including preparing your Los Feliz home properly that will help get your home sold in less time and for more money. Call me at 310-913-9477 or contact me to discuss how I will get your home sold.
Original Source: LosFelizHouse.com