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The Pre-Approval Process (IMPORTANT!) How to get Pre-Approved for a Mortgage + Avoiding Big Banks - YouTube
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Hey everyone, it's Izzy. I am back
answering questions from the Internet. In
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the last video we took a look at
mortgage basics and where to start. Today
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we're going to take a deeper look into
the pre-approval process. If you look in
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the description below, I have the
timestamps for the different questions,
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so if you already know some of this
information, feel free to skip through. So
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what is a pre-approval letter? In a sense,
it's a bank's stamp of approval on you as
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a buyer. Unless you're paying all cash
for your home, you can only buy as much
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as the bank approves you for. For you,
it's going to help you identify your max
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spending limit, what your monthly
payment is going to look like, and other
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numbers like down payment and that type
of thing. If you're a first-time
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homebuyer, or you ever were, please press the like button to help your fellow
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house hunters find this content. In the
last video, I introduced Jennifer
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Quattrone from Howard Hanna Mortgage.
We're jumping back into that zoom
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interview to answer Questions From the
Interne.
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Izzy: In my experience for some
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reason people tend to put off the
pre-approval process. I think it's
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because they have a bit of a
misconception about how complicated it
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is, that it's going to be this long
drawn-out process, and a lot of paperwork.
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But that's not really the case.
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JQ: Right, so it's such an easy process, to be honest
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with you. It's a 5-minute conversation,
and I typically will get your approval
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done in 20 minutes. I'm gonna get your
personal information: birthday, social
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security number, those items. I'm going
to get a two-year residence history, two
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year work history, and what your assets
are that you feel comfortable diclosing.
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I'm gonna pull your credit and, and give
you options. It's a no obligation. I'm
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pretty easygoing, but it's, you know, it's a great starting point. If I pull
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your credit, and you're not pre-approveable, or I can pre-approve you but I know that
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you'd be like better off to wait couple
months and we can put you into a
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different program, I'll be able to tell
you that. I'll give you ideas about what
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to do to get you to that point, so it's
usually a quick process and it's usually
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quite painless, that part of it.
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Izzy: this is kind of a long question so we'll
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break it up into parts. But it starts by
asking, 'I'm compiling a list of places to
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check into, but do I just walk in and say
"I'm here to shop for a mortgage what's
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your best rate,"' and then maybe you can
also talk a little bit about why rates
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might vary bank to bank.
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JQ: You can call
around. Interest rates do vary they don't
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vary that much. Sometimes I see that like
interest rates are hidden in costs, so
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like one bank will say it's 3.25 and one
bank will say it's 3.375
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, but the 3.25 has more cost so
the banks are making the same amount of
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money. It's just how they're collecting it,
either upfront in costs, or in interest rate.
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And rates do vary, you know, I get my
rates multiple times a day because the
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market changes. And there's just a lot of
functions in that. I think more important
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than finding the best rate is finding
the best person to service you and take
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care of you through the process. Because
if you get a little bit lower interest
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rate and it saves you four dollars a
month, was it really worth it if you went
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through four weeks of aggravation? And
maybe closed on time, maybe not closed on
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time? I think you need to be looking at
the service more than the rate.
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JQ: You most certainly can get pre-approved multiple places they're all going to want to pull
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your credit. I really don't know anything
until I pull your credit. To know what
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programs you qualify, what interest rate
what mortgage insurance, any of that. If
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it's you and your husband, most places
are going to want your husband's
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permission to pull credit also, so I
would think that you would both need to
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be together, or like I said if you did it
over the phone, or email,
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there's ways, you know, to get that done.
Any mortgage company that's going to issue a
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pre-approval without pulling your credit,
or offering you a rate without pulling your
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credit, is just crazy. They don't really
know, they're just throwing things out
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there, and then they may change it on you
midstream.
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A credit pull...really does not
affect you...we've all been brought up that
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like, 'don't get your credit pulled, it's
gonna mess up your credit!' and it always
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is going to say on your credit report, 'credit score is reflective of too many
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inquiries.' I see that on every credit
report I pull, and they won't have any
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inquiries. So I don't really see that
dropping your credit score that much, and
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a mortgage inquiry...it's supposed to be
that all mortgage inquiries within 45
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days, because they do know that you shop for mortgage, count as one inquiry.
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Your credit report is good for 120 days. When I print a pre-approval letter, it says 90
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but that's like 90 to shop, 30 to close, but
it is good for 120 days. And then
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typically, I update those, you know,
throughout the process, so if you don't
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find a house in 120 days, it will continue
to be updated.
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Izzy: this user asks, 'should I get a mortgage broker or go big bank?"
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JQ: so of course I'm always partial to the loan
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officer, the one that sits in the office
with the agents and/or works with agents
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on a day-to-day basis, which I do. Of
course, I'm not sitting in the office
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with anybody right now,
but in theory I am because how many zoom calls have I been on this week?
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The reason I think that is so important
is you're not calling 1-800 Bank and
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talking to a different person every time.
You're not talking to someone who is
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working out of Ohio, and possibly doesn't
know all the ins and outs of Western
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Pennsylvania. And when there is a problem, because sometimes there's hiccups in the
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mortgage process, Izzy and I are going
to talk and work together to get it
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solved. I'm not going to be avoiding her
because I'm still gonna have to eat
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lunch with her next week.
So I can't
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go hide somewhere, so. The
one-stop shopping is very beneficial.
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Izzy: that's such an important
point because I think people don't
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realize that when their mortgage person
only works 9:00 to 5:00, they're not
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going to be able to reach them when
they're looking for a home after work,
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which is when most clients are looking
for houses. So it's important to have
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that relationship with someone that's
going to be available night and day,
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Saturday and Sunday, and doesn't just
sit behind a desk during regular
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business hours.
JQ: and that big bank is not going to be
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available at 7 o'clock on a Saturday
night when you have that question that
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pops into your head, and you're just like,
'oh my gosh what if this happens...' You can
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feel free to call me.
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So there you have
it. I think everyone goes into things
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realizing that interest rate is really
important, but don't forget how important
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the customer service is when you're
going through the process. If you're not
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in the Pittsburgh area, just ask your
real estate agent for a recommendation
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of a lender to talk to. They're gonna
know who can close deals, who's reputable,
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who's reliable, and who's going to answer
the phone when you need them. Please
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press the subscribe button because
there's still more questions on the
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internet about real estate, which means
more videos to come. I'm Izzy, thanks for
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watching, and have a great day
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