Avoid Financial Disaster

Before You Begin Searching For A New Home - Get Pre-Approved For Your Mortgage

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 will qualify for a specific loan amount—even before you begin home shopping! Once you have our Pre-Approval Certificate, you can shop for your dream home in total confidence that you have already been pre-approved for the loan. We firmly believe this report will save home buyers countless hours of stress in wondering whether they “qualify” for a loan.

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 is safe, and it’s a really 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 encounter in locating the home of your dreams and ultimately making the purchase. First, you’ll most likely spend weeks looking through dozens of newspapers and magazines until you find a neighborhood that appeals to you.

Second, eventually you’ll drive around those neighborhoods that look interesting—just to get a feel for what they’re really like.

Third, you’ll begin to go to open houses to get an inside look at the homes in those neighborhoods.

Fourth, you’ll begin working with a Real Estate Agent to find other homes that are available in this area in your price range.

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 eventually find a home that you love and decide to buy.

Once you find that home, the next step is to draft an offer to purchase to the seller. This is where the expertise of your Realtor comes to your aid. A professional Realtor will know exactly how to draft the offer you want to make and what clauses to included in the purchase contract to 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 Real Estate Agent has instructed you to contact a lender to begin the loan application process, you’ve met with a Home Loan Specialist, and you’ve completed a loan application. What is involved in the loan application process? In the next section I will show you the exact sequence of events occurring when you apply for a loan and what lenders look for in a borrower.

USING A MORTGAGE BROKER WILL PREVENT COSTLY MISTAKES!

Mortgage Brokers have been around for years but their services are still not well known by the general public. They provide a valuable service that smart borrowers should recognize.

Without realizing it, many people choose the wrong type of financing which can quite literally cost them thousands of dollars. These expensive mistakes are made because most consumers lack knowledge of mortgages and are not able to get the proper counseling when they obtain their financing.

A broker’s knowledge can often enable people with low income, commissioned-sales staff, self-employed people, or those who have had credit problems to obtain excellent financing. Our compensation for acting as your consultant is a finders fee paid by the lender. These lenders always offer better rates and superior prepayment privileges AND often shave as much as a half percentage point off the normal market rate.

If you need a mortgage loan, give us a call and let us help you avoid making any COSTLY MISTAKES!

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 on your being formally approved for the loan! If you can’t get this loan, you can’t buy the home . . . period!

So, lets take a look at the steps you will likely take in applying for your loan:

Step 1. Initially you’ll meet with a Loan Officer who will ask you to complete a Residential Loan Application. Many lenders may require an application fee at this time and a check to cover the cost of your credit report and appraisal.

Step 2. The Loan Officer will 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 homes and a copy of your current credit report. The lender 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 receives your credit report, appraisal, and all the written verification requests, your loan package will be submitted to the underwriting department. They will evaluate your loan packages and 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”—credit, capacity, collateral, and character, qualities lenders want to see when they consider a loan. Lets go over these in detail.

Credit: A lender wants to determine that you are a good credit risk by seeing your current credit picture—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. This is measured by dividing your gross monthly income by your total outstanding debts (including the new payment on the home you’re planning 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 lender needs 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, to determine character, they look at your job stability, your probability of continued employment, and your ability to save money.

Let’s take a moment here to summarize the entire “traditional” 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.

Second, you’ve consulted a Real Estate Agent and drafted an offer that is within the terms you believe 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, and applications, and brought him a wheelbarrow full of additional documentation to support your income.

Fifth, you are now awaiting a yes or no answer from the lender.

After all of this effort, there is still a chance you won’t get the home of your dreams because your loan may be TURNED DOWN—that is, if you use the “traditional” approach.

Imagine for a moment that when you initially drafted your offer, you were already approved for the loan—IN ADVANCE—and you had a Pre-Approval Certificate to included with your offer.

This Pre-Approval Certificate actually gives the seller a GUARANTEE that you will qualify for the loan and compel them to respond to your offer immediately!

You will have eliminated the two major obstacles to owning your dream home:

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? 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 Certificate. Listen closely. It is possible to get this Pre-Approval Certificate—and it’s an ABSOLUTE MUST if you’re even remotely interested in buying a home.

1. It gives you a WRITTEN APPROVAL from a lender for a
   SPECIFIC LOAN AMOUNT so you know exactly which homes and price range to include in your search.
2. It gives you the PEACE-OF-MIND to know that your loan approval WILL NOT be an obstacle in buying your home.
3. It gives your offer MAXIMUM CREDIBILITY and shows the seller that you are serious about buying because you’ve taken the time to get Pre-Approved. (If the sellers received multiple offers on the home -which one do you think would catch their attention?)

How to get your own Pre-Approval Certificate

So, what does it take get this Pre-Approval Certificate?

It takes 3 simple steps to get a written Pre-Approval Certificate:

1. Find a company which offers this unique Pre-Approval process.
2. Meet with a Home Loan Specialist from that company or a broker to get pre-qualified.
3. Then, usually within a few days, receive your written Pre-Approval Certificate!

What steps did you eliminate?

1. No need to have specific information on the property.
2. No need to pay for an appraisal up-front.
3. No need to nervously wait for weeks to find out if you qualify!

So, where do you find a lender who offers this unique Pre-Approval Approach? YOU’VE JUST FOUND ONE!

With our full line of products and rates, our specialists will search for the very best program at a terrific rate to fit your individual needs.