If you’re in the market for a new home, one of the first questions many people ask is, “What can we afford?” Many buyers become so caught up in guessing their monthly payment, they don’t take one of the most important steps in the home buying process; That is sitting down with a loan officer and drawing a road map to reach their homeownership goal.
My realtor wants me to get pre-approved, Why should I?
“The simplest way to answer that question is, The only way to you will now if you can afford a home or qualify for a home is to get pre-approved.” Says Laura Abel of Interlinc Mortgage.
Getting your credit pulled and having a Mortgage Loan Officer verify your credit, income, and assets is key to beginning the process.
Another key factor to obtaining pre-qualification for prospective homeowners are those pesky student loans. While they aren’t dealbreakers, it is very important to evaluate what impact those loans may have on your situation.
How Long does the process take?
The basic process is fairly simple. The typical Loan Officer will want to verify your identity, income, assets/savings, credit, work history and rental history, if applicable.
For a variety of circumstances, a lender may want to take a deeper dive into your situation. Perhaps you work in a Base + Commission structure? Perhaps you work a substantial amount of overtime? A variety of factors will determine the depth of research a Loan Officer will perform in order to get a clear picture of your home buying power.
Once all information has been verified and evaluated, you will know if you are pre-approved to buy a home.
Credit issues most times are easily addressed, it’s very important to speak to a loan officer to navigate those.
“If you have a loan approval and no one has verified any of your information, I would be very suspect and weary of that!” Says Laura Abel
Common Documents Required Are:
- Copy of Driver’s license & Social Security Card
- Last two years W-2’s & tax returns
- One full month’s pay stubs showing year to date earnings
- Last two months bank statements, all pages (even blank pages), all accounts
- Last three months (or last quarterly statement) of 401k or retirement accounts, all pages
When should I meet with a Loan Officer?
Laura indicated, IF you have had thoughts about buying a home, you should consider meeting with a Loan Officer.
The reason why? To have an idea of what your house payment will be and what your closing costs could be.
Having a conversation with a Loan Officer with simply give you road map to your individual homeownership goal. It does not necessarily mean having credit pulled and running you through the entire pre-approval process.
Laura concludes, “The sooner the better. Once you do get within a 90 day window of being ready, you should 100% have your loan officer verify your credit, income, and assets.”
Will having my credit pulled hurt my credit?
The short story on this is: Credit bureaus view Mortgage Companies pulling credit as one individual pull. All Mortgage Company Inquiries within 30 days of one another are viewed as one individual pull in order to allow consumers to do their due diligence in choosing the best option for them.
Shopping around for the best rate is in the best interest of a prospective homeowner.
About Laura Abel:
Laura has been a Loan Officer since 1995. In the 23 years since, Laura has seen loan processes evolve and change. She loves how rewarding helping her clients meet their homeownership goals is. Having survived the housing crisis in 2008, she played an integral part in helping her clients navigate the difficult times many homeowners encountered.
Interlinc Bank is the largest Mortgage Bank you have never heard of. Laura Abel is the current Branch Manager for the Arlington Office and oversees the Tarrant County region.
Customer communication is incredibly important, and it is one of they key attributes Interlinc and Laura pride themselves on.
For any further questions in regards to the loan process Laura’s personal cell # is (817) 713-5355 or apply at her website at www.mortgagesbylaura.com