GETTING PRE-APPROVED
Buying a home can be an emotional process! It can be very tempting to start looking for homes, either by browsing listings online or checking out various neighborhoods in the car. But before you spend too much of your time, or that of a real estate agent, it’s best that you get approved for a home loan by a competent mortgage lender first. A pre-approval by a good mortgage lender will tell you a couple very important things . . . (1) it will let you know that you can qualify for a home loan, and (2) how much of a loan you can qualify for. This way you don’t potentially fall in love with a house that is out of your price range.
NOTE: A Pre-Approval from The Loan Geeks is no ordinary pre-qualification! A pre-approval from the Loan Geeks is exceptionally thorough! You can feel very confident that a high level of due diligence and attention to detail has been expended on your behalf in an effort to avoid any unpleasant surprises later on in the home buying process. Our goal is to provide an efficient, stress-free and on-time home purchase. And that starts right up front with a quality pre-approval!
Get Smart . . . Get Pre-Approved for your Home Loan today!
Why Should You Get Pre-Approved?
Getting Pre-Approved BEFORE you start shopping for homes has several important advantages.
- Both you and your real estate agent will understand what you can afford so that you aren’t spending time looking at homes outside of your price range.
- When you do find the right home, and you are ready to submit a purchase offer, you will be in the best possible position to submit a strong offer that a seller is more likely to accept over competing offers.
- Once your offer is accepted, you can feel confident that it is highly unlikely that there will be any unexpected surprises with your mortgage financing that could delay or completely scuttle the purchase of your home.
What Gets Reviewed in a pre-Approval?
There are three primary areas of your finances that must be reviewed to determine if you qualify for a loan, and how much you qualify to borrow. These areas are Income, Assets and Credit.
Income:
There are several aspect of your income that we must look at. First, is how much money you earn. We also compare that against your current debt obligations to determine how much of a monthly mortgage payment you can afford? Second, we must look at the stability of your income / employment. Does your income fluctuate regularly due to irregular hours, bonuses or commissions, or is it fairly steady? And finally. how long have you been on your current job? Have there been any significant gaps in employment in the past 2 years?
Note: The allowable debt-to-income (DTI) ratios vary from loan program to program. Typically a DTI between 45%-50%, based on your gross monthly income, is considered acceptable on most loan programs.
Assets:
The primary assets we are interested in reviewing and verifying are what are known as “liquid” assets, which are assets that are readily verifiable and spendable, such as checking, savings, money market, CD, brokerage/stock accounts, IRA’s, 401k’s, etc. We must verify that you have enough funds available for the necessary down payment, plus funds to cover closing costs and pre-paid expenses. If you don’t have enough funds on-hand, it is possible to get a gift from a relative. It is also possible that the seller, if agreeable, can contribute toward your closing costs and pre-paid expenses (the seller cannot contribute toward your down payment).
Credit:
When we look at credit, we are looking for several factors. First, we are looking at your credit scores. Different loan programs have different minimum allowable credit scores. Also, in most cases, the higher your credit score, the better (i.e. lower) interest rate you will qualify for. We are also looking at account repayments history, any past or present derogatory credit events, etc. as there are program specific requirements regarding the type, number, and age of various credit events that are allowable.
3-Levels of Pre-Approval
Pre-Qualification Approval
- Quickest and Easiest Pre-Approval Level.
- Typically completed same-day in less than 24 hrs from the time you submit your application and any requested supporting documents.
- Performed by a Licensed Loan Geeks Home Loan Expert
This pre-approval is anything but basic! After all it is being done by a Loan Geeks Home Loan Expert! You can submit your application through our State-of-the-Art Two-X OnLine Application, over the phone, or via fax/email to your Loan Geeks Home Loan Expert, along with any required supporting documentation (e.g. income and asset docs). We will complete your application, verify your income and assets and pull credit to confirm your credit scores, repayment history and any outstanding debt.. Once the entire picture is compiled and there are no unanswered questions or concerns, we will run your application through the automated underwriting system (AUS) to confirm you meet the applicable lending standards. Once the AUS approval is received, we will issue your Pre-Qualification Approval letter.
Verified pre-Approval
- This is a full-fledged Credit Approval!
- Typically completed in 24-48 hrs from the time you submit your application and any requested supporting documents.
- Performed by a Licensed Loan Geeks Home Loan Expert and Verified/Approved by an Underwriter.
This is a Full-Fledged Approval by an Underwriter! With this Pre-Approval in-hand, your purchase offer is incredibly strong! It really is the next best thing to making a Cash Offer! You can submit your application through our State-of-the-Art Two-X OnLine Application, over the phone, or via fax/email to your Loan Geeks Home Loan Expert, along with any required supporting documentation (e.g. income and asset docs). We will complete your application, verify your income and assets and pull credit to confirm your credit scores, repayment history and any outstanding debt.. Once the entire picture is compiled and there are no unanswered questions or concerns, we will run your application through the automated underwriting system (AUS) to confirm you meet the applicable lending standards. We will then submit your application, docs, and AUS results to our underwriter for review and approval. Once the underwriter gives conditional approval, we will issue your Verified Pre-Approval letter.
Power pre-Approval with Lock & Live
- Full-fledged Underwriting Credit Approval!
- Up to 90-days Interest Rate Protection while you shop for your home!.
I'm Ready to Start House Shopping! What's my next step?
Apply Online
With our State-of-the-Art Two-X Online Application technology, getting a home loan has never been easier or faster. you will be walked through the application process step-by-step. And the help of a Loan Geeks Home Loan Expert is never more than a mouse click or phone call away.
Talk to a Loan Geeks Home Loan Expert!
If you are not comfortable starting the application process online, no need to worry. A Loan Geeks Home Loan Expert is available to answer all of your questions and get you started! Answer a few quick questions on the contact request and we’ll have a Loan Geeks Home Loan Expert call you.