Watch the quick video above…We are working on your foundation for any and all home loans. Keep reading to learn why pre-quals are DEAD!
Pre-Qualifying is The Way of The Past
The housing market has changed quite a bit over the years, and pre-crash, loan programs and underwriting worked much differently than they do today. To pre-qualify you would just state how much you make, monthly debt obligations and how much you could borrow. This process is really the old way of doing things.
Pre-Approval Is My Standard
While some mortgage lenders may still offer a pre-qualify service, I personally do not. This outdated process is quite frankly a waste of everyone’s time. I “save” home purchase transactions pretty regular…Meaning buyers get denied at other banks and my team and I save the day!
In today’s lending environment, best practices consider a much wider scope of factors to determine how much you can spend for more responsible, realistic lending. You must supply full documentation in today’s lending environment–that’s the bottom line.
Below is a chart that breaks down the differences between a pre-qualify and a pre-approval.
Quick Note: Also illustrated is an exclusive pre-purchase program Called The Express Loan Approval Program…In the next lesson we will discuss the Express loan Approval Program.
See the chart above? All these docs are required for mortgage loan approval, so you might as well get them in your file and reviewed upfront. There is plenty you will have to do while under contract and gathering required docs shouldn’t be one of them.
Beware of The Lazy-Lender’s Pre-Approval!
In the home buying and lending process, it can be easy to go with the flow and end up with a sub-par service. There are many lenders out there that call their pre-qualify process a “pre-approval.” Further, there are other who just don’t take the time to review full client documents prior to sending buyers out to look at homes. If you don’t do your due diligence you could end up in a buying process full of frustrations.
My goal through the Ultimate Home Buyer Experience is to prep my clients to experience the best service and home buying experience possible. When you know what the best service looks like, you know how to identify the sub-par.