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Santa Clarita Homes, Los Angeles Homes, You Must Get PreApproval Before Shopping for Real Estate
Now a-days getting pre-qualified for a home loan is of no value whatsoever. No real estate agent or home seller or lender will consider your purchase offer without a pre-approval letter obtained in advance from a qualified loan officer.
By: Peggy Brooks, Realtor Santa Clarita, Ca
By Peggy Brooks, Real Estate Agent Los Angeles, Ca, Santa Clarita, Ca.
The days of getting pre-qualified for a home loan are long gone. Your purchase offer will not be considered without a pre-approval letter obtained in advance according to a Senior Loan Officer I interviewed recently.
Back in the good old days, you called a lender on the phone. You estimated your income and monthly expenses. He told you how much home loan you could qualify for. It took approximately 20 painless minutes and off you went with your real estate agent. Both of you were confident in your ability to obtain that loan.
Now a-days getting pre-qualified for a home loan is of no value whatsoever. No real estate agent or home seller or lender will consider your purchase offer without a pre-approval letter obtained in advance from a qualified loan officer. The loan officer said, “Don’t bother putting a customer in your car if they haven’t been pre-approved”
The problem is, not too many people can get pre-approved these days. The lenders require documentation on absolutely everything. The self-employed are a casualty of this new program. Pre-approval for these people is extremely difficult.
People who think they have no problem because they have a decent income are also in for scrutiny. Any expenses they claimed on last year’s Income Taxes will come right off the top of their earnings, according to my source.
But for those of you who do get preapproved there are many agents waiting to help you. Like me…
Search Santa Clarita real estate! Buy Santa Clarita Homes. Sell Santa Clarita homes, or sell Los Angeles real estate. Peggy Brooks, a real estate agent with Keller Williams Realty will help you buy or sell your home in Santa Clarita Valley fast! Website:
If I can answer questions or be of help in any way, please contact me by email: peggy@
Your real estate agent will be happy to recommend a lender for you, or you can choose one yourself. There are many to choose from since there are so few loans being written these days.
It’s best to be prepared, so here is a list of what your loan officer will need to get you pre-approved:
1. A completed Loan Application (loan officer will provide this)
2. A new Credit Report. (loan officer will pull this up)
3. Your last month’s Pay Stubs.
4. Your last two years of W2’s.
5. Your last two years of Tax Returns. (your loan officer will may get these from IRS).
6. Bank Statements from the last two months.
Everything must be documented. That’s why it’s so difficult for the self employed to get approved.
For more information on this and other news in the real estate industry ,please visit my Santa Clarita Homes blog at: www.PeggyBrooksRealtor.com.
For those of us lucky enough to get approved for a loan, some basic guidelines for what is available are as follows:
Conventional loans can close in 25 days.
• 20% down with 620 FICO.
• Seller can assist closing costs up to 6%.
• 3% assistance is normal.
• 3% down - Tough Qualifications. Private Mortgage Insurance is required.
• Single Family Residence only. No Condos.
FHA – Best Program for Most of Us, according to loan officer.
• 3% Down with Private Mortgage Insurance.
• Fico - 640 is standard.
• 580 Fico is possible with compensating factors.
• Can Close in 30 days
• Seller can assist closing costs up to 6%.
• 3% assistance is normal
VA -- Really, Really Best but only available to veterans.
• Requirements are mostly unchanged.
• No down payment
• 100% loan up to $417,000.
For more information please visit my website: http://www.santaclarita--
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Search Santa Clarita real estate! Buy Santa Clarita Homes. Sell Santa Clarita homes, or sell Los Angeles real estate. Peggy Brooks, a real estate agent with Keller Williams Realty will help you buy or sell your home in Santa Clarita Valley fast! Email: email@example.com. Blog: http://PeggyBrooksRealtor.com/