Getting a Home Loan: These are the 6 qualifiers for a home loan:
- Your income
- Your payment obligations
- Your total debts
- Your assets
- Your credit report
- Appraisal of the property
A lender’s rough opinion of the amount of purchase price you are qualified for. It can be done quickly, because you can verbally state the first 4 qualifiers, and the lender can obtain a credit report (the 5th qualifier) almost instantaneously. However, nothing is verified in a pre- qualification.
You have been formally approved for a loan amount, subject only to the appraisal of the property you will purchase. It normally takes about 2 -3 weeks. This includes your filling out a loan application, and the lender obtaining written verification of all information from your employer, debtors, financial institutions, credit report and tax returns.
Your real options:
There are always options. For example, with an excellent credit history and a strong down payment, fewer qualifiers need to be verified. There are many types of loan programs that an experienced, skilled, computer-literate lender can give you. It does not cost you more to utilize the services of a great mortgage broker than going directly to a bank. In fact, it often costs you less.