How To Homeown

Obtaining a pre-approval for a mortgage is the undisputed first step in the successful home purchase process, so we teamed up with one of the country’s top producing Mortgage Loan Officers, Anna Kussmaul, to let you in on everything you need to know about the pre-approval step! To put it simply, a pre-approval is a verified snapshot of how much money you qualify to borrow to put toward a house based on your assets, credit score and income. The money you borrow to put toward a house is also know as your LOAN or your MORTGAGE.

Anna Kussmaul takes us on a deeper dive to understanding it all: “Pre-approval and pre-qualification are two terms you will see and hear often when looking for a home. But what do they really mean? What is the difference between the two?

Pre-qualification – This is a much shorter process, normally just filling out an online application with ballpark income information, current residence address, type of loan you think you are looking to obtain and some basic asset information. From there, an algorithm can give you a range of what you might qualify for. In order to best position yourself to start your home search, you will need more than a pre-qualification.

Pre-approval – This is a more detailed and personally accurate process.  In addition to completing an online application, you will provide documentation to support what is in your application. Your credit is then pulled and all of that information is run through an Automated Underwriting System to make sure it qualifies for the guidelines that lenders require [the LENDER is the person or company you are borrowing the money from]. Once you complete the application and provide the documentation, it should only take 24-48 hours to find out how much you qualify for. From there your loan agent can provide a letter to your Realtor confirming your credit, income and assets are all verified: this is what is needed to make an offer on a home.

A sample document checklist to support your loan application includes: – Most recent paystubs – W2 (if self employed, your most recent two years federal tax returns) – Bank statements – Non-expired driver’s license or passport

Most pre-approvals are good for 60 days, barring nothing dramatic in your life or the market has changed. It is wise to stay in contact with your mortgage person regularly when you are seriously looking at homes so they can advise you on any changes and keep you up to date on rates, costs, etc.  

Once you are pre-approved for a loan, your mortgage person can help you to understand what it will cost you to borrow this money in terms of monthly payments and potential down payment scenarios based on what you can afford. There are various loan programs available to borrowers through mortgage brokers and it is our job to help you position yourself in the best way in order to comfortably purchase your new home!”

Anna Kussmaul, Sr. Loan Officer | StoneCastle Mortgage
NMLS#: 266654 | Licensed in AZ, CA, CO, GA, ID, MT, OR, WA Phone: (925) 314-5201
anna@stonecastlemtg.com

Need help finding a mortgage broker in your area? Contact Anna to connect you OR Find A Mortgage Broker here!

Happy Financing!