How To Get Pre-Approved For A Loan
Before You Buy
How You Can Get A
Written Approval By A Lender For A Specific Loan Amount….
Before You Begin Home Shopping!
Yes, you can get
approved for a home loan, even before you make an offer to buy! This
report will show you exactly how to get a lender’s pre-approval in
writing that guarantees you qualify for a specific loan amount - even
before you begin home shopping! Once you have this “Approval
Certificate” you can shop for your dream home in total confidence,
because you’ll know you’ve already been pre-approved for the loan. We
firmly believe this report will save home buyers countless hours of
stress in wondering if they “qualify” for a loan or not.
Imagine for a moment paying cash for your home. Just reaching inside
your pocket and pulling out thousands of dollars. You have to believe
the seller would give you an incredible deal after seeing all that
money. Our pre-approval loans are not quite the same as cash, but they
come pretty close. In fact, research shows that a pre-approved borrower
has 97% of the buying power of a cash buyer. Walking around with a
pocket full of thousands of dollars may not be safe, but a pre-approved
loan from CLA Mortgage Services is safe, and it’s a real smart idea!
It has been said that the home buying process is one of the most
stressful events in one’s life. Now you can lay to rest any concerns you
may have about qualifying for a home loan. It’s like nothing you’ve ever
seen before!
Now, I want to tell you ALL about this amazing tool and help you
COMPLETELY UNDERSTAND how it works.
The Home Buying Process
To help you understand this amazing tool, I must start by giving you an
example of the steps involved in buying a home, and applying for a home
loan using the TRADITIONAL APPROACH. For this example, we’ll say you
currently own a home, but would like to move up to a larger home in a
different community.
HERE’S THE PROCESS YOU ARE LIKELY TO GO THROUGH: locate the home
of your dreams, and (b.) ultimately purchase it!
First,You’ll most likely spend weeks looking through dozens of
newspapers and magazines until you find a neighborhood that appeals to
you.
Second, Then, you’ll eventually drive around those neighborhoods
that look interesting, just to get a feel for what they’re really like.
Third, You’ll soon begin to go to open houses to get an inside
look at the homes in those neighborhoods you’re interested in.
Fourth, Eventually you’ll begin working with a Realtor to find
out about other homes that are available in this area, and in the price
range you think you want to buy in.
Fifth, Finally, after countless hours of searching, going to open
houses, calling on ads, driving around different neighborhoods, finding
out about the areas, the amenities, the school districts, the shopping
facilities, you’ll eventually find a home that you fall in love with,
and decide to buy.
That Is Exactly What Most Home-Buyers Go Through To Find The Home Of
Their Dreams!
Once you find that perfect home, the next step is to draft an offer to
purchase, and submit it to the seller. This is where the expertise of
your Realtor comes in. A professional Realtor should know exactly how to
draft the offer you’re willing to make, and know what clauses to include
in the purchase contract that will protect your interests and your
deposit! Once your offer has been submitted to the seller, you simply
wait for an answer.
Now listen closely. This is the most exciting (and also most stressful)
part of your entire home-buying process. You know that the only things
that stand between you and your dream home are: (1) the seller’s
acceptance of your offer, and (2) your qualifying for the loan.
All you have to DO is get the seller to accept your offer, and get
approved for the home loan—and this dream home is as good as yours, -
It’s that simple!!!
Now, by this time, your Realtor has instructed you to contact a lender
to begin the loan application process. So, by now, you’ve met with a
Loan Officer and completed a loan application. What is involved in the
loan application process…you ask? In the next section, I will show you
the exact sequence of events that take place when you apply for a loan,
and what lenders look for in a borrower.
The “Traditional” Loan Application Process
Remember, up to this point, you’ve only had a cursory pre-qualification
from your Realtor, and your entire transaction hinges on your being
formally approved for the loan! If you can’t get this loan, you can’t
buy the home….period!
So, let’s take a look at the steps you will likely go through to
apply for a loan:
Step 1 Initially, you’ll meet with a Loan Officer who will have
you complete a Residential Loan Application. Many lenders may require an
application fee at this time, and a check to cover the cost of the
credit report and appraisal.
Step 2 The Loan Officer will then request a series of documents
to support your income, your savings, and your expenses (i.e., W-2’s,
pay stubs, bank statements, list of outstanding debts).
Step 3 The Loan Officer will then begin processing your
application. At this time the lender will order an appraisal of the
home, a copy of the current credit report, and will make written
requests to verify your employment and bank account balances.
Step 4 Within 3 days of completing your application, the lender
will provide you with a Good Faith Estimate of closing costs and a
booklet containing information about the closing costs you may incur in
the transaction.
Step 5 Once the lender received your credit report, appraisal,
and all the written verification requests, your loan package will then
be submitted to the underwriting department. Then they will evaluate
your loan package, and will either approve, deny or suspend your loan
for further documentation.
What Lenders Look For In Borrowers...
In the mortgage lending business, there is a rule-of-thumb called the
4-C’s. What this stands for is credit, capacity, collateral, and
character. These are traditionally what lenders look for in a borrower
when they are considering loaning money.
Let’s go over these in detail:
Credit: A lender wants to know that you are a good credit risk by
looking at your current credit picture. This is why they order a credit
report at the beginning of the loan process. Your credit report is a
“snap-shot” of your past and present debt, current available credit, and
a rating of your debt repayment history.
Capacity: This is simply a measure of your financial capacity to
have this loan. The way it is measured is by dividing your gross monthly
income by your total outstanding debts (including the new payment on the
home you’re trying to buy). Generally, lenders will allow 40% of your
monthly income to be used for your housing expense, and all other
current obligations you have outstanding (including credit cards, auto
loans, student loans, etc.)
Collateral: This is nothing more than the value of the property
you’re about to buy. The lenders need to know the value of the property
you are “pledging” as collateral for the loan.
Character: Character is a catch-all phrase that is basically an
underwriter’s subjective determination of your over-all financial
picture. Generally, they look at your job stability, your probability of
continued employment, and your ability to save money to determine
character.
Let’s take a moment here to summarize the entire process:
First: You’ve spent many hours of your time, money, and effort to
locate the perfect home in the perfect neighborhood for you and your
family to live.
Second: You’ve sat down with a Realtor and drafted an offer that
is within the terms you feel are fair.
Third: You’ve submitted a written offer to the seller and are
awaiting their response.
Fourth: You’ve met with a Loan Officer, filled out a multitude of
paperwork, forms, applications, and brought him or her a wheelbarrow
full of additional documentation to support your income.
Fifth: You’re how awaiting a yes or no answer from the lender.
And after all of this effort, there is still a chance you won’t get the
home of your dreams because your loan might be TURNED DOWN - that is, if
you use the traditional approach.
OKAY, Now Let’s See If We Can Make All Of This A Little More Exciting
And A Lot Less Stressful!
Imagine for a moment, if when you initially drafted your offer, you were
already approved for the loan - IN ADVANCE…and you had a Pre-Approval
Commitment Letter that you included with your offer.
This Pre-Approval Commitment Letter actually gives the seller a
GUARANTEE that you would qualify for the loan, and therefore compels
them to respond to your offer immediately!
You will have eliminated the two major obstacles to owning your dream
home!
Obstacle #1 - The seller’s acceptance of the offer.
Obstacle #2 - Your approval for the loan.
Wouldn’t it be wonderful….to walk away from the table knowing that
there’s a good chance you’ll be moving into the home of your dreams in
less than 30 days?!
IMPOSSIBLE, you say? How can someone actually be approved for a home
loan before they even make an offer to buy? And how can such a
Pre-Approval certificate compel the seller to give the offer so much
credibility?
Let me explain the details of this Amazing Pre-Approval Commitment
Letter.
Listen closely: It is possible to get this Pre-Approval Commitment
Letter we’re talking about - and it’s an ABSOLUTE MUST if you’re even
remotely interested in buying a home.
Here’s What It Does For You!!
It gives you a WRITTEN APPROVAL from a lender for a SPECIFIC LOAN AMOUNT
so you know exactly what homes to look for, and what price range you can
purchase.
It gives you the PEACE-OF-MIND in knowing that your being approved WILL
NOT be an obstacle in buying your home.
It gives your offer MAXIMUM CREDIBILITY, and shows the seller that
you’re serious about buying because you’ve taken the time to get
Pre-Approved. (If the seller has received multiple offers on the home,
which one do you think they would pay more attention to?)
