Are you interested in buying a new home? What about refinancing an existing home mortgage?
Often times industry lingo is thrown around without a good explanation what it means to the borrower including the phrases Prequalified and Preapproved. They sound pretty similar right? So what is the difference and how do they affect you as a borrower?
Prequalified – this is just a simple conversation with a loan officer. Questions are asked about your financial situation to determine if you can qualify for a loan. You will be asked about your job and how much income are you bringing in monthly. You will also be questioned on the amount of monthly debt you are paying each month. These help determine if you pass a certain qualification ratio, a.k.a. your Debt-to-Income. It is very important to note, NOTHING IS VERIFIED. We take your word on these things and this is usually the first conversation you have with your loan officer.
Preapproved – EVERYTHING IS VERIFIED. At this point it has been determined based on your word alone that you can qualify for a loan so now the obvious next step is to verify the information using different documentation. Your credit report will be pulled to see what your borrowing history looks like and get a better look at your monthly debt.Your income will have to be verified either by using a W-2 for conventional loans or by alternative documentation such as bank statements or investment statements. Submitting an application to a lender for a loan is basically the Preapproval but once the app is submitted, the lender will then continue to scrutinize the documentation for any irregularity. Preapproval helps move things alone much faster but nothing is ever guaranteed. The only thing is really guarantees is the ability and willingness to repay a mortgage but the lender has final approval and can deny a loan for any reason they see fit.
Please be aware that loans are approved first and verified later, so in some instances you could have an approval but the lender then finds in your documentation they are not comfortable with and deny you a loan. A common example is an irregularly large deposit in your bank account which will usually cause the lender to require a letter of explanation stating why and where that money came from.
Feel free to contact me with any questions you may have about getting a home loan. We boast the best rates in the industry. Allow us to demonstrate our prompt and professional service. Call today for immediate attention to your loan scenario.
Click here to submit your loan application to Valor: GET STARTED HERE – LOAN APPLICATION
Recap of our Loan Products:
1). Stated Income Loans (Great for business owners and self-employed) 20% down / 620+ credit score / 2 years business license / 12-24 months bank statements
2). Foreign Nationals Loans (no social security or residency required) 35% down / Foreign passport / Document income outside US
3). Hard Money Loans (28-35% down / minimal documentation) Fund in 7-10 days. 480+ credit score
4). Raw Land and Construction (Bridge Loans) including Spec Home! 75% loan to cost (cost of land and construction budget)
5). 3% down Conventional (Lender paid PMI)
6). Residential Income/Investment Property (including Mixed Use) Purchase and Refinance Loans 20-35% down depending on property, credit etc.
7). Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
8). Flipper Loans (Flip a property with one of our many options) 30% down we finance acquisition and rehab funds / 1-2 year terms
9). 10.1% down Jumbo’s with NO MI up to $2.5mm
10). Manufactured Housing / Mobile Homes (20% down / 620+ credit score) must be tied to real property/Must be at least double wide/Must be built after June 15th 1996 /
11). Acreage Properties
12). Commercial Loans up to $100mm / Purchase and Refinance Loans 25-35% down depending on property, credit etc.
We also offer:
1). 10, 15, 20, 25, 30 year Fixed, Conventional Conforming Loans (under $424k) 30 year fixed
2). High Balance Conforming aka Super Conforming (from $424k-$636k) 30 year fixed
3). Jumbo’s to $10 Million / Super low rates! / 10% down Jumbo to $2.5mm
4). FHA, VA, USDA
5). ARM’s
6). Reverse mortgages up to $10 Million Value
7). Refinance including Cash Out
I am able to take a Loan Application on a moment’s notice & will be happy to provide Pre approval letters.
Please do not hesitate to call on me on each and every scenario and we will ID best programs.
Camille Patterson
Loan Officer
CaBRE# 02035349
NMLS#1517035
Valor Lending Group
‘Pride in Lending’
Petco Park – Diamond View Tower
350 10th Ave – 10th Floor
San Diego, CA
Direct: (858) 732-2320
Office: (619) 344-2640
Fax: (619) 872-2400
web: www.valorlending.com
Email: cpatterson@valorlending.com
