Set a Plate at the Table for ME!

PreQualification. How to do it and why you should.

If you are interested in buying a home, whether it is your first home or your 10th, it is important to know what your purchase power is. So if you are considering a buying a home the first stop on your journey is with your lender.

A PreQualification can be done in less than 30 minutes. It involves actually filling out an application and a credit review by your mortgage loan officer. You will be asked for your complete contact information, residential history, employment history, assets, liabilities, any real estate owned (reo),

whether or not you plan to live in the property, who will be on the title, and a few personal questions about your ethnicity and race. It can feel invasive and overwhelming. Make sure you are comfortable disclosing all of this information. Be aware that sometimes your answers can generate more questions. Everything you tell your loan officer will be third party verified.

I always tell my clients to set a plate at the table for me because we are about to be family.

The items that you discuss with your loan officer will give him/her a high level overview of your financial picture. A loan officer can look at the information that you have given and make a quick determination on whether or not you COULD BE APPROVED.

At this point, the loan officer will give you a PreQualification Letter so that your Realtor can submit it with a contract offer on a property. Realtors and sellers will often ask for this letter so that they can have some assurance that you have at least talked to a lender.

THIS DOES NOT MEAN THAT YOU ARE APPROVED FOR A LOAN!

It simply means that you could potentially be approved for the loan once all of your supporting documentation has been submitted and ultimately reviewed by an underwriter. A PreQualification letter can secure a rate for you up to 120 days while you are shopping for a home. However, you are still subject to an underwriting review.

Know your purchase power. Be transparent with your loan officer. Your loan officer is going to be involved in every aspect of your financial life throughout the process. Your loan officer is going to guide you through an often overwhelming, complicated, journey. Let them, lean on them.

Your loan officer is your family now. Set them a plate at the table.