WHEN TO CALL A LENDER

When should I call a lender in the Buying process?

jsrealty4u business lender menContacting a lender to get pre-approved for a loan should be the first action item for anyone that is interested in buying a home. The pre-approval process will typically begin with a phone conversation or a face-to-face meeting between the borrower and the loan officer. The prospective borrower will need to fill out a loan application and give the loan officer permission to run a credit report.

Why are these steps important?

The initial conversation will allow the loan officer to get valuable information such as:

-The number of people on the loan
-Will there be a non-occupant co-borrower
Meeting Realtor Contracts-Permission to run a credit report
-How much cash the borrower has for closing costs and a down payment
-Time-frame for purchasing a home
-Is the borrower self-employed?
-Is the borrower paid by salary, commission, overtime etc?

The loan application provides a great deal of information as well such as:

JS Realty Mortgage Loan Application-Does the borrower own any properties currently
-Employment information
-How long the borrower has been employed at current job
-Monthly income
-Assets such as checking accounts, savings accounts and retirement accounts
-Past credit issues: bankruptcy, foreclosures, short-sales etc.

The credit report provides additional information that is valuable in the pre-approval stage.

JS Realty credit score variableCredit score which will determine the type of loans available
-Score also determines interest rates that the borrower qualifies for
-Amount of monthly debts that need to be factored into the borrower’s debt-to-income ratio
-Are there any collection accounts that need attention prior to final loan approval
-If scores are low, many times a loan officer can offer help in raising the borrower’s credit scores

jsrealty4u js realty stampAfter gathering information from the initial conversation, loan application and credit report, the lender may need additional documentation in order to provide a pre-approval letter. Once this information is received and reviewed, a lender should be able to let a borrower know the amount of a monthly housing expense payment they would qualify for. A pre-approval letter is a written commitment by a lender to provide a mortgage loan to a borrower. With a pre-approval letter in hand, potential buyers are able to look for properties in their price range with a high degree of confidence that they can purchase a home that fits their needs.

JSRealty4U new homeIf you are curious about how the process works, check out our previous blog on the entire Loan Process or download our Loan Process Flyer.

JS Realty Keith Harris
Keith Harris
NMLS # 838973

If you have any questions about a loan, or would like clarification on any of the information we have provided thus far, please contact our preferred Lender, Keith Harris at Intercoastal Mortgage Company.

 

 


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Keith Harris

Author: Keith Harris

As a loan officer, Keith's commitment to you is that he will spend the time necessary to understand your needs and tailor a loan best suited for you. He has been providing first class real estate services for clients in the Washington DC metro area for the past 14 years. If Keith is not in the office, chances are you'll find him golfing.