So, you have estimated your budget and you think you are ready to buy a home. Now what? Prequalification is the first step to the loan process. This is where you contact me (in whichever way is most convenient: in person, over the phone, or online) and I gather the information about:
Income
How much money comes into your household? This not only helps us find out how much you can afford, but also can determine what programs you might be eligible for. Are you a w2 or 10-99 employee? Do you get commission or bonuses? Do you have side jobs or seasonal employment?
Job History
Are you self-employed? Do you work for someone else? How long have you been at this job, and how long have you been in this industry? This conversation is important as it can tell me how to determine risks and benefits we should address, and job-related programs we should evaluate to see if it’s a good fit for you.
Assets
Do you have checking, savings, or investment accounts? Knowing about your assets can help us discuss important topics like: Where will your down payment/closing costs be coming from? Will you have needed reserves if they are required? This part of the conversation is important so I can see the entire financial view to know how to best help you.
Your Budget
What are you paying for your rent or mortgage now? What proposed payment would you be comfortable with? This conversation helps us make sure that you prequalify with something you will be happy with long term. Just because you can qualify for $225,000, doesn’t mean that you should. Having this conversation starter, gives you the opportunity to ask questions, and discuss more than rates, but also payment strategies and how to incorporate this new purchase into your overall long term plan.
Debt
What bills do you have now as compared to the income that comes in? We will talk about your debt to income ratio and how it affects this purchase. Is there something that you should pay off now to put you in a better position to buy? Do you have government debt or student loans that we should address? Do you pay child support or alimony? Are you behind on your taxes?
Credit
What is your credit score? This can determine what interest rate you pay on your loan and also can impact what programs you can qualify for. How are you utilizing your credit? Do you have enough trade-lines in good standing? What about collections or derogatory credit? Have you filed bankruptcy or defaulted on any loans? Have you had late payments? We will discuss how your credit impacts this purchase and if there are steps we should take to do any repair before we begin. Bad credit doesn’t mean you can’t buy, it DOES need to be addressed before you buy however, and that starts with me.
If you have excellent credit, NOW is your chance to see all that hard work pay off with better interest rates, and options customized for top-tier scores. I’ve got loads of them waiting for you.
YOU!
We will discuss who you are and what exactly you are looking for. This gives me the opportunity to evaluate and inform you about the programs, products and options that might best fit your needs. As a wholesale broker, working with many different lenders I’m not locked into one set group of products trying to make you fit into them. I can take a look at YOUR goals, your scenario and locate the best fit for you among hundreds of options and at wholesale rates.
I’d love to talk to you about your options. It all begins with a simple conversation. Reach out and let’s begin working on your homeownership goals together.
