First Time Home Buyer Guide: Pre-Qualification

First Time Home Buyer Guide: Pre-Qualification.

First Time Home Buyer Guide: Pre-Qualification video duration 5 Minute(s) 35 Second(s), published by Haley Thayer on 27 09 2018 - 19:09:27.

PRE-QUALIFICATION- Hey guys –As I told you in my last video – I am a Loan Originator in Seattle
I work for a company called Residential First Mortgage and Dave Jamison (https://rainbowmortgageinc.com/) talks about qualifying for a mortgage while still on the marital homestead.

PreQualification versus PreApproval versus Conditional Loan Approval
What do these words mean? Is there a difference between them? What are the https://www.DavidDuford.com/ - Should You Pre-Qualify Your Mortgage Protection Appointments? In this video, David Duford discusses whether or not mortgage

-PRE-QUALIFICATION-

Hey guys –As I told you in my last video – I am a Loan Originator in Seattle.

I work for a company called Residential First Mortgage and Capital. The company has been in business for over 30 years and with that comes 30 years of experience.

To obtain a mortgage is a process, especially for first-time home buyers who have a lot of questions. But there are a lot of options you can choose from and we specialize in creatively finding you financing that fits your current situation best.

I am going to go through the mortgage process on a conventional loan with you so you can understand the basics and what will be asked of you as the borrower.

A conventional loan is the common type of mortgage a consumer would apply for. A conventional loan is A-paper meaning it is for borrowers with good credit, income, and liquidity. This earns the consumer the most competitive rates out there.

The first step in the mortgage process is prequalification - This determines what you can and cannot afford as far as the size of the loan, the monthly payment, what you are comfortable spending, etc.

This is the very first conversation you have with your Loan Originator – me! We can do this over the phone. It will typically only take about 5 to 10 minutes of your time. I work on your schedule so we can get you prequalified at any time of the day that works best for you.

The four main areas of qualifying include: 1. Income 2. Credit 3. Liquidity (Assets) 4. Size of Down Payment

We will ask you a series of questions to get you started. - Where is the property located? - What type of property are we dealing with – is it a house, a condo, multi-unit? What is the purpose of the loan? For example: is it a loan to buy a primary residence, or is it a loan to buy a rental property.

We will then go through the four areas of prequalification:
Income – We will ask you about your income, how much you make each year, are you on commission or salary? Are you also earning overtime and bonuses? We will ask you if you are self-employed or if you work for a company. Anything that can help us determine your durability and longevity of your income.

Next is credit – we will ask you about your credit score. But we will also have to run a credit check to complete the prequalification process. We will look at your payment history on things like your credit cards, student loans, car loans and the balances/payments on these loans. All monthly payments on these forms of consumer debt factor into total debt ratio calculation.

Then we will ask you about your assets. Anything that can help you qualify for owning a home: such as bank balances, Stock portfolios, as well as any retirement savings you have accumulated. If needed, we will discuss the possibility of a gift from direct relatives to supplement your savings also. We will be looking to see if you have enough in liquid assets to fund your down payment, closing costs, with enough left over for the lenders cash reserve requirements.

Last is the size of the down payment you prefer. We will talk about the pros and cons of each down payment option. What are you comfortable putting down? What are the tax advantages you can use to offset your mortgage payments?

Prequalification is an important first step before starting to look for your home. This will help narrow down your choices and allow you to know exactly what you can afford. We highly recommend this so you don’t waste time in your home search.

At this point, we can draft and get you a Letter of Prequalification that most realtors will accept. Some prefer to have a full Letter of Pre-Approval. This is where we take your loan application over the phone, run your credit, gather all the income, asset, and debt info, and actually submit it to our best lending source for your situation.

Obtaining a conventional loan is a process. But this is the most standard loan process people go through to buy their homes. We have a fast turnaround on these types of loans and can guide you through every step of the way. Note that we do not charge for either a pre-qualification or a pre-approval.

Please come to us with any questions. We are happy to answer them and guide you through the process.

Reach out to me today to discuss your options!

Email: inquiries@haleythayer.com
Facebook: https://www.facebook.com/residentialfirstcapital/
Twitter: https://twitter.com/ResFirstCapital
Website: http://www.residentialfirstcapital.com/

Thanks for watching! I hope this helps you understand the process a little bit more.