Happy New Year Everyone!
I am wishing you and your families a Wonderful Year Ahead!
Whether you have already decided to buy a home this year or just
thinking about it, please think meaningful and thoroughly before proceeding!
The Know Before You Owe rule does not change the
importance of preapprovals or pre-qualifications.
The more time and effort you invest in learning about home loans
and defining what you want and what you are capable of financing before you
select a home, the smoother the path from contract to closing will
be.
Suggestion: Print this Article, discuss with your
family, and put it on the refrigerator to help you stay focused on a very big
Goal for 2022!
Let me share with
you how we do this for our clients with impressive results,
the PRE-QUAL Process:
- I suggest they
go to www.annualcreditreport.com and take a
look at their credit, review with their spouse, if applicable, take notes,
follow up on any outstanding issues on their credit and call me with any
questions. I am not a credit repair company; however, I can answer many questions
and make suggestions after 21 years doing mortgage loans.
- I take a Quick
and Easy 10 - 20-minute mortgage loan application over the phone
which is very thorough and allows us to discuss the specific types of
loans and which one will work best to meet their needs, Conventional vs
FHA for example.
- Note: During
the application process, this is a perfect time for me to notice any
potential issues - issues that need to be fixed and resolved for
qualifying.
- Next, I ask the
client to send over Proof of Funds for down-payment and
closing costs as well as Income documentation which
includes Tax Returns, W2's, 1099's, paystubs, etc.
- Once I receive
all the requested documents, I do a thorough underwrite of
the Assets and Income and I collaborate with my underwriters to cure any
potential qualifying items.
- Next, once
underwriting is complete, I provide my clients with a "Soft-Pre-Qual"; no
credit pulled, and no automated underwriting completed. Over the
phone we discuss their qualifying profile; different down-payment
and loan options, max purchase price scenarios, what their payment will
look like, estimated total funds needed to close, and so much more.
- Note: I
typically follow this phone call with an email and attach a Fees
Worksheet which includes the written overview of what the
potential purchase will look like discussed over the phone. This can be
done multiple times with different scenarios, i.e., purchase price, down
payment.
- "Hard
Pre-Qual" -
when the client is ready to move forward to the final pre-qualification
stage in order to obtain a Pre-Qual Letter and start
shopping for a new home, then at this point, it is time to run credit and
run automated underwriting through Fannie Mae or Freddie Mac and achieve
the Approve Eligible Response needed to qualify.
- Pre-Approval
Letter - Ready,
set, go Shopping for a New Home! Once the Pre-Approval process is
complete, I will provide a professional fully pre-qualified letter which
can be used to enter a home for viewing and presenting offers to purchase.
- Note: When
clients are shopping and get ready to make an offer, typically higher than
estimated, they contact me to update the pre-approval to ensure
qualifying and I forward them an updated pre-approval letter to
provide to their real estate agent when presenting an offer.
- Offer Accepted! Congratulations, you are on your way to home ownership! Because of the thorough pre-qualification already done, now, it is just a matter of Escrow being opened by the Listing agent, you will be required to put in your earnest money deposit into escrow, then escrow will provide the required escrow and title fees to start the loan!
- Loan Process Begins! Once I receive the fees from escrow, I can start the loan process which includes
Registering your loan with the lender, getting disclosures signed, submitting
your loan for underwriting, achieving Lender Loan commitment, clearing conditions for closing, signing loan documents, funding and recording. The really fun part is when the loan records and your realtor gets to presents you with the KEYS TO YOUR NEW HOME.
- Whew, you did it! You did your
due diligence up front! It paid off with a smooth and efficient loan closing, a closed
Purchase transaction and the reward of home ownership!
I am here if you have questions? If you are ready to start your Purchase Pre-Qual Journey, lets get started! Call me direct @ 818.359.4145 or feel free to email with Questions @ Lisa@trustlendingsolutions.com, visit www.trustlendingsolutions.com.
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