Mortgage Pre-Approval Explained: Why Ours Close Over 99% of the Time

Transcript

Lightly edited from the video for readability.

Hi. I'm Matt Demorest, owner of HomeSure Lending. We get asked all the time, why should I get it pre-approved? Why is that important? Why does it matter?

So let's go ahead and talk about that now. It is vitally important if you're looking to buy a house to get pre approved. And the reason for that is you need to know what you can shop for. Your price range may be 250000 dollars in your mind, but you want 1000 dollar a month payment. And sometimes those things don't line up.

We need to help make sure that whatever your goal is, that you know how to accomplish it ahead of time. So pre-approval is really a process where we look at your documents, your credit score, your assets, your income. We look at all those things ahead of time to make sure that we're very confident that you're going to close on a loan. It's not a full underwriting process. We aren't underwriters, but we've done over 500 loans and we really know what to look for from a mistake standpoint.

It's an opportunity for us to look at your file and say, hey, here's an issue to overcome. Let's figure it out. If your credit score's too low or you have a bankruptcy or foreclosure or some sort of past issue that we need to overcome, pre approval is the time to do that. The time to do that is not the 30 days until you have to close because you just offer on a house and you're not pre approved. The time to do that is ahead of time.

So really, pre approval is the opportunity that we have to work with you to overcome any potential issues. So what's involved in getting pre approved? Well, 1st you're going to want to go to homesure lending dot com backslash apply and fill out our application. You're going to want to make sure you use your pre tax income. That's your gross income before tax.

That's the amount that we'll pre qualify you on. Also, we're going to look at your income and your asset information. Your asset, that's your bank statements. That's your bank accounts and the money that you have available. It could be gift funds.

If you're not sure what a gift fund is and you may have 1, go to homesurelending dot com backslash FAQ and watch the video on gift funds. But assets, income, and credit, those are really important. The credit report is going to be a full credit report because that's the only way that we're going to have all the information we need to know if you can be pre-approved. When it comes down to it, it's very important that you're in a program that fits your needs. And it could be an FHA loan or a conventional loan.

And there are tons of different loan options. And what we're going to do is say you fit specifically within what you need to qualify for this program. That's what pre-approval is for. So when it's time to offer on a house and you're holding your pre-approval letter and you hand it to your real estate agent and you're like, I want to buy this house, you can be confident that you can actually afford it, that you can make that payment, and that that program's going to fit the type of house that you want. It's our job at HomeSure Lending and it really we take this very seriously to get you pre-approved and to do that right the 1st time.

In this industry, about 60 percent of loans close from pre-approval. That means 4 out of every 10 people is denied. Our rate of closing on pre-approval is over 99 percent because we do the homework ahead of time so that you don't get in a spot where you're going to lose your deposit on a house. Every house, generally, there's a 1 percent deposit. 1 percent of 100000 dollars is 1000 dollars, and getting denied on a loan can put that thousand dollars at risk.

We strive to ensure that you're not putting your time or your money at risk. Things can happen and some loans don't close. But it's our job upfront to do the basic homework to make sure that there's no basic issue that gets in the way. We say we like to help people purchase with confidence and refinance with ease, and that's what we're going to do.