So last week we talked about getting prepared for home ownership by working on and establishing your budget. If you missed it, here’s the link to that article and if you need to download the budget sheet, you can find that HERE
Now that you’ve looked at your income and your bills and you know what you are able to spend on your monthly payment, how much you should save, and completed your budget. The next step, before you do ANYTHING else is to get prequalified. So how do you do that?
It all starts with a conversation. Give me a call and we can talk about your goals, and what you are looking to accomplish. Is this your first home? Are you looking to start investing in real estate? Let’s get to know each other because we are going to be getting to know each other WELL during this process.
Fill out the application
The next step is filling out the application. You can either do my online application, we can do it over the phone, or you can set up a time to come into my office if you are in Tahlequah or Northeast Oklahoma and like to do things face to face. Any of these options work as well as another. Let’s give the online example though, since it’s most common.
You go to my application and fill out basic information: name, date of birth, social security number, address, phone number, etc. We will ask information about your employment and income. We ask about your assets; do you own properties currently? How much do you have in your bank accounts? I know that some of this information seems very personal, but it is necessary and it’s information that we need to be able to document if we’re going to secure your loan. The application also will ask things like purchase price or loan amount. Remember that this application is set up to be sort of generic, some people come to me when they’ve already found the house and they know that information. Sometimes I’m rescuing a loan that another lender couldn’t do, and the applicant has very detailed information that they know about the transaction specifically. If you are just starting, and you don’t know the answers to some of these questions, that’s ok. Just skip the question or if it will not let you skip, just put in a random number or you can put “ask me” as the answer. I’m going to go through this application line by line (many times) and I will ask you for more detail as we go along.
When you finish the application, be sure and call or text me, so I can go find it. Most of the time I get an alert, but you know how tech can be. It can be great, but it sometimes can be a little glitchy too, and I don’t want you to wait thinking that you are finished, but the application didn’t come through. So let me know you’re ready for me to review.
Preliminary Structuring of Loan & Gathering DOCUMENTS
Now I will go through and vet the application. I’ll make a list of questions and call you to follow up. Additionally, even if you answer every single question, I will likely have even more. Sometimes the answer to one question may give rise to OTHER questions that I need to ask about. Remember how I said the application can be kind of generic? Your loan process will be customized to you because every single transaction and every single person who applies is different. Some people are self-employed, or have variable income. They might work multiple jobs or have multiple rental properties that make up additional income. It’s impossible to create an application that asks all the right questions, so the purpose of the application is just to get the basic information that gives me a starting place to ask the other more specific questions that apply to your situation as a unique person.
Qualifying you for a loan isn’t just punching some numbers into a program and approve or deny pops out the other side. It is much more nuanced than that. Every loan is like a puzzle, there are lots of different pieces and each one is unique. I have to back up and look at the WHOLE picture to find out how to make the pieces all fit together. It’s also about finding the most efficient and effective way to make the loan work. Sometimes it’s problem solving and you have to look at the information from multiple different angles to see how to structure the loan to find the best option for you as a my unique customer and your very specific situation. We want the best loan, with the best terms and options and the least money out of pocket…or whatever best fits YOUR goals.
Collecting Documents & Clarifying Interview
So when I’ve made my list of questions, we can address this a couple of different ways and it really depends on your schedule. Do you have time for a call and we can address these over the phone? I can email you a list, or I might text you if I just need to get a couple of things clarified.
When I have your most basic profile together, then I will assess your income and employment, your assets, take a look at your credit score AND credit history and liabilities and then I figure your debt-to-income ratio. At this point I reach out again.
Now we review documents: If we set a meeting for this appointment, then I’ve already sent you a list of the required documents and you may have started sending them to me. If we are going straight into this meeting after you’ve just applied, then I’ll tell you about the documents now. I will need the documents as SOON as you are able to get them to me. I need to be able to document every piece of the story that we are telling the underwriters about your situation with the paperwork to back it up.
If you make $24/hr, I need to have a paystub that shows it. Depending on what we are documenting, and the regulation of the loan program you are using, the documents required will be different. We will go more in depth about documents next week, but for now, the message is the documents are VERY important to keep us from having a not-so-good surprise later. I need them. So please get them to me as soon as possible. You aren’t fully pre-qualified until I have all the documents.
Initial Interview: Your Clear Mortgage Plan
This is where I like to set aside about 30 minutes with you and any co-borrower if that applies to go over my findings. Sometimes you might be available now, or sometimes we’ll make an appointment for that evening after work or whatever time might work for you.
During this meeting we will go over your clear mortgage plan. We talk about your budget vs the amount you qualify for, what that might look like for monthly payments, We’ll talk about the various programs that you qualify for. Most people will qualify for more than one, and we’ll talk about the benefits and drawbacks of each and compare them to see what might best fit your goals. We’ll talk about closing costs, down payments that might be required and cash to close requirements, where that’s coming from, and if you are ready in that regard. We’ll talk about any challenges that you might have in your particular situation and how best to meet them or safeguard against any roadblocks, and we’ll cover any questions you might have or things that are important to you.
Here Comes the Fun Part!
If this is a meeting that we set and you’ve already provided me with the documents, now the fun begins. We discussed your goals, we’ve matched up the program and pre-approval to line up with them, so now I ask you, “do you have a realtor?” If you do, that’s great, and if you don’t, I work with some fabulous realtors that will do a terrific job helping you to find exactly what you’re looking for. I love it when I can get to know a customer, and then match them up with a realtor who is suited for their personality and what they are looking for. I work with some of the very best in the business and I’m happy to refer you to one.
I take a lot of pride in being a true resource for my customers. I’m not just a loan machine…but oh wait, yeah, I kind of am. But I want to educate my customers on what is happening in the process. I want to be able to answer your questions, and refer you to other great industry professionals like realtors, title, insurance agents, inspectors and more. I have some great connections and tons of resources that I can share. I truly love my job, I love my customers and I love to teach people about what I do and share this passion for helping others make their dreams of home ownership come true.
Next week we’ll continue our series and talk more specifically about the documents that you might need for your loan. See you next week!
Have more questions? Let’s talk about it:
If you’re ready to get started, apply www.lisadoesloans.net
