How To Get Pre Approved For A Home Loan

Hey everybody, Kris Krohn here with REITV And today we're going to be talking about the steps you you need to take to get yourself approved for a loan

Getting approved is going to require 3 things The first thing for you to personally get approved for a loan, you're going to need a job And typically they want that job to be held for at least 2 years in the same industry So six months ago if you quit one job and started another one, no problem, as long it's in the same industry However, if you went from warehouse worker to surgeon, little bit of a disconnect

They may not count that By the way, if you're young and your in school for 4 years, and getting your job, day 1, in the same industry, will count for 4 years of work history Kind of a cool little bonus piece there The second thing your gonna need, is developed credit Not just credit, or a decent enough credit score, but developed credit

Banks want to see at least 2 or 3 trade lines And their going to want to see that you've been able to use them responsibly for, again, at least 2 years 2 years is kind of a really magic number here And so that might be, I have a discover card, and I have a Visa card, and an American express Some banks will not actually recognize Discover, the way they will mastercard and visa, so have a couple of those on hand

Right now, whether you have good credit or bad credit First of all, if you've got bad credit, go work on it Check the link below, reach out to our team, talk to customer support

I've got an over 800 credit score right now, and it's not because of how well I manage my credit, as much as it is having a team that keeps it there So if you've made mistakes in the past with your credit, or you have some illegitimate things on there Get it handled, because your credit is an asset Now, whether you can qualify for a $500 card for a student, or whether you're older and have a $30,000 line of credit Sometimes people will actually shut down a bunch of credit cards

Don't do that Keep your credit available Make good, wise choices use them, pay them off, use them pay them off Okay

Two years history with at least 2 or 3 trade lines The 3rd and final thing you need, is a job Not just having that job, but they want a history of you making a certain amount of money Because they are going to look at how much you can qualify for And ultimately they are going to look at how much debt you have in your life, and how much income, and they are looking for a magic ratio called the DTI

Debt to Income ratio So you need a job that is making enough money against your expenses that there is a margin for actually being able to afford a housing expense Now if your renting and paying $700 a month Then that's going to go away So you already know that $700 is going to get freed up

The question is, can you free up enough for their margin? And that's why you get pre-approved, long before you go out and actually house hunt So you are probably wondering, how much money can I actually get, if I'm getting pre-approved Well that's the point of pre approval, is there's a magic number What they are going to basically do, is say well, again like I shared earlier, based on your credit, your job income, or the different factors, basically we're calculating your DTI, your debt to income ratio and this is what you can qualify for So, maybe I make $40,000 a year, and I'm able to qualify for $140,000 home Maybe I make $80,000 a year, but I've got a lot of expenses in my life, and so I still only qualify for a $140,000 Or maybe I make $30,000 a year, but I'm an excellent penny pincher, and I qualify for a whole lot more

So, what they're going to do, is their basically going to say, "how much debt are you managing every month, and how much do we believe that you can really handle" Most banks, just in general, are going to qualify you for between 40% and 50% of debt So If I make $4000 a month, then they believe you can handle $2000 a month of debt Well, think about that for a second If I only have $400 a month of payments, then they say I can take up to what? $1600 more dollars in payments

Well $1600 based upon todays interest rates, means that I could qualify for a $220,000 house Boom! There's your number, you get a pre-approval letter, now you can go into the marketplace and start making offers, with confidence And that my friends, is the approval loan process Now, by the way, I want to invite you to subscribe, see more of these videos, and if you'd like to receive a free approval process, then go ahead and click the link below Have my team get in touch with you

I've got a team that buys hundreds of properties for me on a regular basis And it only takes me a couple minutes a month to manage all of it And yet just this week I received an $80,000 check from selling one of my properties So if you want to access my entire team, click that link below, and let's get you started right away

Source: Youtube

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