Get PreApproved for a Home Loan - 2024 Tips & Tricks
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- เผยแพร่เมื่อ 4 มิ.ย. 2024
- Getting PreApproved for a Home Loan is the FIRST step you should take in your home buying process. But what do you need to get preapproved for a loan in the first place? I'm giving you my BEST tips & tricks so you can buy your first home and get preapproved for a loan in 2024!
I've partnered with MoneyUnder30.com to bring you great information on buying your home! Check out the link below for more articles to help you get preapproved for a home loan this year!
Pre-Approval Checklist: www.moneyunder30.com/mortgage...
How to Get PreApproved for Your First Home Loan : www.moneyunder30.com/get-appr...
#firsttimehomebuyer #mortgage #realestate
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Licensed by the California Department of Business Oversight NMLS 1410686, a Licensed Representative of American Mortgage Network NMLS 1833427 Equal Opportunity Lender. All thoughts and opinions are my own, not of my company. Any rates, terms, programs, etc. mentioned in these videos are hypothetical and are not an advertisement or promise to lend. Your actual mortgage terms might vary based on qualifications. Always consult a licensed mortgage professional in your area. - แนวปฏิบัติและการใช้ชีวิต
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Getting Pre-Approved is a HUGE but important step in the home buying process! Ask me any questions you have about the process! 👇
Then there's conditional approval, which is exciting if their request is not that complex. Then they come up with other realizations, but how can that be, after underwriting twice
This is one of the biggest pain people have with underwriting but what I’ve experienced is a smooth process comes down to two things.
1. Pre underwriting at PreApproval. I’ve gotten in the habit of having all my loans pre underwritten. This reduces the redundancy of needing things upfront
2. Minimizing “surprises”. Often knowing more upfront can really help. Most LO’s tend to ask for the minimums because they don’t want to overwhelm people but I’m a big believer of getting what you can done early on. Sometimes conditions create further questions and then even more conditions, so that happens more often than it should.
Hi, just have a question. What if someone has one year of tax return, can they get pre-approved?
Typically we would need a minimum of two years of tax returns however there are some circumstances where one year would be sufficient. For example 2+ years work experience in the field followed by 1 year of self employment documented by a tax return.
@@CatonDelRosario What credit bureau is used for preapprovals?
As someone who is and has been an underwriter in the business for 10 years, this guy knows his stuff and how present it clearly.
This is a huge compliment! Thank you!
Your a scmmer!!!
Excellent video, great analysis and useful examples 💯
Great Video & keep up the Great work
🖤🏡📶
Thank you for sharing and explaining why knowing your number. Getting the ball started earlier will help all home buyers. Always explaining and telling my client's before they try to jump into the car to see places. 😊 Let's take it step by step.
Very straightforward and great advice. Thank you very much for the video.
you're so welcome! was there anything that was a major takeaway for you?
Thank you for the information. We are working with a mortgage counselor and wish he explains things as clearly as you do. If I have more questions I will definitely going to ask you to explain.
THANKS ! you're appreciated
You’re so welcome!
Great video. Thanks for the information.
Glad to help! Any other questions you have?
Very helpful. Thank u!
You're welcome!
Me and my wife just got pre-approved today
Let’s gooo! Congrats!
this was a great video!!
Thank you! Hope it helped! What questions do you still have?
Thank you so much ! Your video is the most helpful and I learn a lot from here. But I do have a lot of questions still😢 it’s all a little deeper questions
What are some of those deeper questions I can hopefully answer on the next video?
Awesome information!
Glad it was helpful! Thanks for watching!
Watching ur videos hv made me somewhat smart towards buying. But still need more info. 1-1 call would be great. Home Buying journey in New Jersey
great video!
Appreciate it bro!
Thank you so much for this amazing video👏👏👏 do we have to have income from past two years. What if we started a new job without past experience and want to buy a house?
Simple. Informative. Excellent! Thank you for educating me!
You’re welcome! What other topics would be helpful for you?
@CatonDelRosario How can we estimate a range we can potentially get pre-approved for?
@@xminuseanx I look at getting a client approved a little differently. It’s not a max price but rather a max payment you’re approved for
A simple formula you can do is take your monthly gross income x 45% and then subtract your minimum monthly payments from your credit report
That # is the max payment comfortably you could qualify for.
Then you can plug in prices and down payments into most mortgage calculators and find out where that payment ends up being
@CatonDelRosario thank you! That's if the lender allows 45% DTI right?
@xminuseanx most lenders do, fha is a max of 46% for just the housing DTI and 56% total DTI
Love your video
I’m glad and hope it helped! What questions do you have?
I'm glad you're a loan officer that's pretty straight forward with a prospective buyer. As a real estate agent helping my clients connect with a lender for their pre approval is always the most important thing. Making sure they're in good hands and learning along the way is even better! Keep it up !
Thank you Dinero! That’s such an amazing compliment because that’s always what I’ve strived for. It’s important to keep things simple, straightforward, without fluff or spin. Hope you’re doing well in this changing market!
Thank you!! I am a new REALTOR and this is so helpful. Feel like I am studying for a finance degree. Go U of Caton!!
I'm glad!
If I am an independent contractor and I have a sizeable down payment but I have a ton of claimed deductions, am I still too risky to consider lending to or it depends on the amount of the property in question? I think this is why I gave up once I was denied back in 2021 when I could have gotten in at the 2% window. Totally different situation, though. I didn't have the down payment in place. My credit is 728. I need to clear down some debt. I don't know how to seem like someone to take a chance on.
Hi, do you work only with potential buyers in California?
I wish their were more information on construction loans with the VA, I see so many benefits attached to VA but most only discuss currently existing homes and shy away from builder home design
I can definitely put something together for this! I’ve got a great friend who specializes in this so maybe I’ll do a Q&A. What are some big questions you have about using the VA to buy & build?
@@CatonDelRosario Well I currently live in NYC and my dream home build exist in Las Vegas on a lot, I understand the VA requires you live in a purchased home for 1 year minimum as like a stipulation of the loan, how would that work for constructions? Would being in a adjacent state negatively impact that, Would the requirements be more strict since it’s a construction when it comes to Credit score and such. I just know way to little about the Whole overall process, would the lot and the home construction both be on the loan. Differing cost? Any extra commitments required and why does it seem based on the little I’m aware of so many shy away from construction loans, especially Va construction loans. I wholly intend to continue renting my nyc apt as it’s a gem but would love to hopefully in the near horizon purchase this dream home as well as like a adjacent residence.. and thank you much for responding
Wow this is literally an all in one video compiled into 13 minutes. Well done! Thank you sir
You’re welcome! Looking forward to making a 2024 update!
Thank you Caton! Where’s the link?
hi Claribel! here's a link to my calendar if you want to schedule a time to chat! calendly.com/catondelrosario/consult
and here's a link to my online application: caton.floify.com
me and my family are trying to buy a home, we’ve lived in mobile homes our whole life but it would be a dream to live in a house, we’re looking to buy one like payments type thing or apply for a loan.. any advice you could give us? we never done this before it’s very frustrating because we don’t know where to even began and it seems so impossible
Hi i have a concern, Im here in 🇺🇸 since 2023 migrated from 🇮🇪 (worked 7yrs as RN) and working as an RN so I don't have a 2yrs w2 would there be a chance to get assessed for pre approval?
Is there a way that I can find out how much I can get preapproved for ?
Hi Caton, thank you for the informative video! Is there a time limit to close on a house once you get pre-approved? I'm curious if it's a really tight window.
Usually a PreApproval letter is good for 90 days but that’s only because all the docs you provide “expire” after that much time and your credit report will usually change a little.
As long as you aren’t making changes to anything you can shop confidently for as long as you need to, just know you’ll have to provide new docs and a credit check once you get under contract!
Is it a good time to buy house now?
Hey! Thanks for the video! I am looking to purchase a home that unexpectedly came back on the market. However, I just had a hard inquiry on my credit report because I thought I would not be shopping for a home for a few months. My credit in excellent shape, but how negative will this recent hard inquiry affect my pre approval odds?? Thank you!!!!
Hi! You’re welcome!
That recent inquiry will honestly do next to nothing. Hard inquiries for mortgages have a tiny impact but of course are a necessary evil in making sure you’re approved and get a solid quote for a mortgage.
What makes a bigger impact is new debt which is usually the result of an inquiry but if you have excellent credit you probably have little to nothing to worry about!
I’d love to help you on your home buying journey! Here’s a link for you to start your home buying journey! catondelrosario.com
How can I ensure proper documentation of child support payments if I’m receiving monthly checks, not captured on a court order?
unfortunately to use child support as income, you'll need a court order.
What if I have a substantial student loan on an IBR plan? How does that factor in with everything? Thanks.
Typically if you’re in repayment we can use that payment to qualify you otherwise we’d use 0.5-1% of the outstanding balance if you’re in deferment
Canton is right. Payment listed on credit report can be used even if it’s $0.
What if I’m trying to get pre approved a second home new construction. Other property will be a rental
You can use 75% of the rents from your departing home to help you qualify and offset the current mortgage!
I was under the impression you needed 20% down to buy a house. I would much rather put 10% down and keep the extra cash on hand. It seems like the monthly cost isn't affected much by your down payment, unless you are putting huge numbers down. Are there any advantages to putting down a larger down payment?
No real advantage other than the lower payment! I’m the same. I did 5% on my home and bought below my means saving on both cash out of pocket and my monthly that way.
Thanks for video, looking to buy a house, we have a 2 family we are looking on keeping and renting out. How does rent affect income (it at 100% or less)? Also house had plenty of equity and mild mortgage. Like to see How much extra to put on total income with rents of both units. Or if I need to know anything else. Looking at average 500k house
Good question! When we qualify you for a new home and you plan on renting the next, we use 75% of the proposed rent to help you qualify. So let's say you had a mortgage of $2000 and you rented it for $2500, you'd have a gross rental income of $1875 but NET rental loss of $125 counted against your debt to income. of course the rent you have should be reasonable for your area as well, so if you say you're renting it for $3000 but the average rent is only $2000 you might have a hard time getting qualified without proof of rent.
@@CatonDelRosario
Thank you, for assisting with that. Mortgage is around 2500 one unit rented at 1900 and when we move from this unit looking on renting out for 2200 , so I am guessing they should account for 1200 additional income?, trying to make simple math. And not complicate the debt to income ratio.
Yep that’s spot on! What state are you buying in?
@@CatonDelRosario Massachusetts
Hi Caton! Thank you so much for this amazing video! Do you have any advice for a couples who aren’t married but want to buy a house together? 🙏🏼
You’re welcome! You can absolutely do it! There’s really no advantage to being married vs unmarried in fact my wife and I bought our home before we got married!
My only tip would really be to get on the same page for your finances and goal for the property. As well as sorting out how you want to hold title before and after marriage with a title attorney when you do get under contract for a home!
@@CatonDelRosario Great advice! Thank you for your reply :)
You’re welcome! Glad to help!
Does a loan taken against my life insurance policy can be used as an approved source of fund?
What life insurance policy do you have boss?
My wife and i have our w2s ready but we took a small break because we were moving States. Our w2 obviously didn't reflect our full working hours. Would it still be ok to submit or should we wait another year?
That’s fine! W2’s mostly help to show job history. But if you’re in more or less the same line of work we’ll go off your effective pay now. What state are you looking to buy in?
We moved to Boise, Idaho from southern california. Homes are definitely a lot cheaper here and our loaner officer said that we won't have any issues with getting pre-approved especially since our salaries are essentially the same from Cali. We're just afraid that our "pre-approved amount" is less than what we would like if we submit weaker w2s.
@erickkim330 yeah you’ll be totally fine, we’re looking more at your current income vs what last years W2 was. If you’re making more that what showed then it’s typically a good thing for us.
Thank you for such a great video! One question I have is if the lenders who pre-approve you have to be the same lenders who you sign the mortgage loan with? If they must be one and the same, then it seems like you have to shop for interests rates, fees and mortgage rates as early as the pre-approval step. Is that correct?
yes and no! the thing with shoping for rates is that things change every day so one day one lender could be out and another would be in. That being said, I'm a big proponent that the cheapest rate with a so-so lender is more expensive than a competitive rate with an experienced lender. You're not just vetting rates and fees, but also the professional handling your mortgage and buying experience.
I've seen it too many times where homebuyers race to the bottom of the rate sheet and fees just to lose on a home or even their deposit because the loan officer who gave that super low rate also gave terrible service or never was available to help.
If I am going to try to get down payment assistance on FHA do i need to still have the 3.5 percent savings ?
Hi! You don't necessarily need it since most programs will cover the down payment, however you should still have money set aside for closing costs in case the program doesnt cover it.
Thank you ! For your advice.
Does it matter if you suddenly make a big deposit now to your account with regard to getting pre-approved?
It definitely can be a red flag for us. Normal deposits like paychecks are fine but anything else can get flagged and will need to be papertrailed and sourced.
Can I ask you, when get pre-approved with 2-3 lenders, why credit score does not affect after 45 days?
There was a change in the laws around mortgage inquiries specifically after 2008 that allowed home buyers the ability to shop for a mortgage without penalty. Since each inquiry would theoretically impact the score, it would give the first lender an unfair advantage and disincentivize buyers from shopping for a better rate
I don't pay property taxes VA home loan
That’s awesome and thank you for your service! It depends largely on the state/county, most places either discount or entirely waive property taxes for disabled veterans.
Is the 30-35% from before or after tax amount?
Before tax but I mean after tax would make it even more reasonable to afford comfortably
Why Barclays bank is not booked valuation of property after personal check?I submitted application 20 days back. Still waiting for mortgage offer
Most big banks SUCK at processing mortgages. I know most run 40+ days to process them for whatever reason. Hence why I always recommend a local mortgage broker. We preapprove in 24 hours and close loans in 15 days or less
How about if the lender saying that the credit score is too low 615 for fha loan...
Find a new lender! We do FHA down to 580 with 3.5% down.
Hi Caton, if I am taking out a loan from my 401k for my downpayment; Does it have to show on my bank account that it’s taken out already or I can just tell the lender that’s my plan without taking it out yet?
Hi Angelica This has become a much more popular option. Typically your 401k will let you make that loan with better terms once you’re under contract on a home, but you need to verify with your 401k holder how much you can take out first!
If you’d like to ask any more specific or detailed questions you can schedule a quick 1-on-1 here I’ll be happy to help!
calendly.com/catondelrosario/consult
If you are using VA disability income along with your employment income, do you have to be receiving VA disability income for 2 years?
You do not need the 2 year history for VA disability! It can be used immediately
@@CatonDelRosario thank you for responding!🙂
@cms7321 you bet! What state are you planning to use your VA loan in!
@@CatonDelRosario in Indiana
MY CREDIT SCORE IS TRANSUNION 721 EQUIFAX 730 EXPERIAN 683 WHY DID LOAN OFFICER GIVE ME FHA PRE APPROVAL IF I QUALIFY FOR CONVENTIONAL I THINK CONVENTIONAL WE GET MORE OPTIONS TO BUY A HOUSE SOME HOUSES IN THE INFO WILL SAY NOT FHA APPROVED OR AM I WRONG UNDERSTANDING BETWEEN FHA & CONVENTIONAL
Great question! In my personal experience lately, when it comes to a client’s monthly payment FHA is slightly better than conventional when putting less than 10% down and especially on condos where conventional has waaaaay higher rates than FHA.
It’s a common misconception that there are more “qualified” properties for conventional vs FHA. this is mostly true for condos since they have to be FHA approved complexes, but conventional and fha appraisals follow close to the same rules.
I have a job and a side business, how will that be accounted for as far as income is concerned?
Usually if you’ve got a second job we want to see a minimum of 12-24 months of that. If you’re self employed then definitely two years of taxes for that.
@@CatonDelRosario ok great I’ve been reporting my business on my taxes along with my W2s. For the past 3-4 years… This works right?
Yep! That should be perfect
I make thirty- thousand a year, do I qualify for this program ?
I would like to be prequalified to buy a home in Georgia...someday. Would you still be able to help me? I live in California.
Absolutely! You can schedule a time to chat on my calendar here: calendly.com/catondelrosario/consult and we can walk you through what to do
Im a small business owner with about 500k in savings, retirement, and investment accts. 2 paid off vehicles with a credit score in the 700s. I also live very frugally and have virtually no debt. I pay off my credit cards in full every month, and i still got rejected for a mortgage. What gives?
Oof yeah so I mean it won’t make you feel better but you aren’t the only one.
Most traditional mortgages have to go off of your tax returns because that’s what you’re telling the IRS you actually make before taxes but after expenses. So if you have a great CPA who minimizes your taxes, you’re almost writing off almost everything. A lot of my business owner clients usually find it easier if they pay themselves well via W2 income with an S Corp.
Alternate option would be to do a bank statement loan that analyzes the cash flow of your business accounts and takes into account a % for your normal expenses.
As a business owner myself it’s hard to get a mortgage but those are the two ways I recommend going about it.
@CatonDelRosario thanks for the info. Guess i'll just keep working on getting these finances in order and play the game right way or just keep stacking and go FIRE on them. Move to a cheaper country and live life the way the Gods intended. Lol
What If you go from one career to a different career but still salary increase?
Great question! If it’s drastically different that could reset the 2 year timer. However if it’s a logical move upward in the same line of work then that’s acceptable!
Is 2 years of work history always necessary?
Yes, but you can get around it with time in school if you studied for what career path you’re in ex. Trade schools or specialized paths like nursing, law, electricians, etc
What if I have good credit and the co-signer doesn’t?
In the case of multiple co-signers we use the lowest of the two credit scores but having a co-signer with better and more established credit can help strengthen the file overall as long as the lowest score still meets the required minimums
@@CatonDelRosario Okay, thanks.
Why is it that I can pay someone 2000 dollars for years to help them pay their mortgage, but to get something for yourself they going to tell you that you aren't capable of paying a mortgage on your your own. They put you through the ringer, and to pay for someone else you didn't even have to come up with 3%😢getting mortgage they need your blood type your first born how you menstrate, what side of the bed you sleep🙄
iConfused
What part can I help you with?
Im in oc looking to buy the dream loan house deal hmu if you wanna help me make that happen
I need help lol
I’ve got you! Use this link to schedule a 1-on-1 and I’ll help you make a game plan. calendly.com/catondelrosario/consult
Why you don’t just keep it straight without all these bad music and destructions
There are chapter markers if you want to skip ahead
Need to speak more slowly
I got bank statement and paystubs from Cyber credible and I was approved the following day
Legit I got the bank statement in my email from Cyber credible
What if i have only 1 year of W2? Can i still purchase a home?
Great question! It depends, what were you doing in the years prior to starting your current W2 job?
@Caton Del Rosario - Millennial Mortgage Pro I was working under cash, no checks.
Got cha, it would definitely be harder to prove employment and income if they didn’t have you on a payroll, so you’ll need two years in a W2 position to qualify
@@CatonDelRosario ah ok. Bummer.
any contact number I can call
check the link in the description to book a call!
Great advise! I have my pre-approval and I've been reducing my debt; your advice about $50 less debt means an additional $10K in home purchase was key to understanding how I can get the most home for my money. Thank you!
Heck yeah! I love to see it!