Category: Pre-Qualification

HAVE YOU PRE-QUALIFIED FOR A LOAN?

HAVE YOU PRE-QUALIFIED FOR A LOAN?

    In order to put an offer on a home, you will likely have to present a letter stating you are pre-qualified for the loan. What do you need to do to get pre-qualified? The first step is to complete a loan application; the application will give the loan originator the information they need to evaluate your scenario, such as your employment history, income, assets, and liabilities. The originator will also want to pull your credit and review your credit report. By reviewing the elements of the ACID® test, we can determine if you are pre-qualified. See link: http://bit.ly/2nAn9yb...

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FIRST THINGS FIRST

You’ve decided you want to buy a house but don’t know where to begin. You’re not sure what to do. First things first; Here’s where to start: • The first thing to do is check your credit, you will need a good credit score to get a good loan. Student loans, car loans, and credit cards are all items that are considered in determining your credit score, make sure you pay these each month when they become due (for credit cards, maintain a balance no higher than 30% of the credit limit, this will help your credit score). • Save...

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DO YOU HAVE A COLLECTION, CHARGE-OFF, OR JUDGMENT?

Can you get a mortgage if you have a derogatory item on your credit report, such as a collection, charge-off, or judgment? Maybe. Believe it or not, your credit score may be high enough to qualify even with the derogatory item on your credit report.  Depending on the dollar amount of the derogatory item, it may not need to be paid off to qualify. The first thing to do is pull your credit and take a look at the derogatory items. If you want to do this on your own, you can go to https://bit.ly/1cWSBIB, where you get one free credit report, without...

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WHAT IS THE DIFFERENCE?

Pre-qualification v. pre-approval, what is the difference? A pre-qualification is based on information provided to the loan originator. The information could be as simple as a conversation about your income, assets, and debts, to providing the supporting documentation. A pre-approval is where an underwriter reviews your file, including the loan application, credit report, income and asset documentation, and approves the file subject to finding a property. This is also known as a credit and income approval. A pre-approval gives you confidence when shopping for a home because you are already approved by the lender. You may also be able to...

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