“My superpower is making every client feel like they’re my only client. I know that applying for a loan can be a tense process. So, I want to make it as easy and smooth as possible by being available and responsive.”
Yanky is one of the most well-known loan originators in the industry. He truly believes that providing service to his clients, and making them feel important is a key to success. At The Mint Capital, they make sure they find the best deal possible on your loan, always stay on top of the process, make sure you send in the correct paperwork, and negotiate for you if needed- all at free of cost. Read the article below to know more about the loan application process.
Q1. When someone wants to buy a house and calls a broker, what’s the first step?
I always tell clients that the first step in the loan process comes before you start looking at homes! That step is the pre-approval. To begin, we’ll review all your financial information. We’ll look at your income, the structure of your income, and pull your credit score. Then, if we think you can qualify for a loan, we’ll write a pre-approval.
After you’re under contract for a house, the real loan application begins. We’ll pull your credit score again if needed, collect all your financial documentation, and review it. Based on that information, we’ll structure a loan, start a loan application, and send it to a lender for approval.
Q2. What is pre-approval, and why is it needed?
The pre-approval is a document from a broker or lender saying they looked at your financial information and believe you will qualify for a loan. It’s not a guarantee, but a pre-approval almost always turns into an approval for the loan application.
In today’s seller’s market, a pre-approval is critical. Most sellers won’t even consider an offer without it. No one wants to waste time getting into a contract and negotiating, only to have the loan fall through. Your pre-approval mitigates that risk.
Q3. What’s the next step a homebuyer should expect after the loan application goes to the lender?
After we submit the application, we wait for the lender’s approval. The lender may come back to you asking for more documentation, which we’ll help you send. We’ll stay on top of the application until the lender approves the loan.
Q4. What benefits does a home buyer get by working with you instead of going directly to a lender?
Think of me as your personal shopper. You could hunt around for the lender with the best rate. Or you can save time and hassle and let us find you the best deal possible on your loan. Because we work with so many lenders, we can get the right lender for your scenario. We’ll also stay on top of the process, make sure you send in the correct paperwork, and negotiate for you if needed.
The best part about this service is that it’s FREE! You don’t pay any more money for a loan that you got through a broker. It’s a win-win situation. Why would you shop around instead and then worry that you overpaid?
Q5. What are Dos and Don’ts for homebuyers to make their loan process as smooth as possible?
1. DO be organized. Someone may have complex income, but if the financial information is organized clearly in files and folders, we can get that client in and out quickly. On the flip side, we can have a client with a simple income structure who is missing crucial income documents and keeps sending all the wrong files. That process can take months and months!
2. DO have your money available. From the down payment to the closing costs, all the money for your home purchase should be in your bank account for at least two months before closing. Make sure all the bank accounts are in your name.
3. DO watch your credit utilization. Credit utilization is the percentage of your total available credit that you’re using. For example, if your total credit limit is $20k and your current balance is $2000, your utilization is 10%. Lenders want to see no more than 20% utilization in your current billing cycle.
With that in mind, pay off your credit balances and don’t make any major purchases while you’re applying for a loan.
4. DON’T take on any new liabilities. New liabilities can hurt your credit score in the short term. While your loan is processed, don’t apply for a new credit card. Don’t take out a new car lease. Even shopping around for brokers can hurt your credit score because each broker will do another credit pull that shows up on your record.
Q6. How can people buy a home with a low down payment?
On a primary house, lenders usually want a 20% down payment. That gives them enough equity in the house to have a buffer if the homeowner defaults on the loan. If you don’t have the cash for a 20% down payment, you have two options:
1. On a primary house, you can go down as low as a 3% down payment if you take out PMI, Private Mortgage Insurance. PMI pays the lender the difference if the homeowner defaults on the loan. You’ll pay a PMI premium in addition to your mortgage payment each month.
2. A better option may be to work with a down payment assistance company like Home.LLC. It gives you the cash to reach 20% and buy your home without PMI. In return, you share the profits and losses on your home with them. Since it isn’t a loan, you aren’t left with the burden of additional monthly payments.
Q7. When is the best time to buy a home?
Five years ago!
Home prices always go up. If you purchased a home five years ago, you would already see how much your home appreciated. Of course, you can’t go back in time, but you can buy now. There will never be a better time. You don’t want to look back with regret at how much money you lost in equity from a home. Plus, mortgage rates are locked in, while rent can go up every year.
Today, some buyers think that high home prices are a bubble that will burst, but they’re not. Prices may go down slightly, but interest rates will go up, so you won’t save money if you wait.
Q8. What is your superpower?
My superpower is making every client feel like they’re my only client. I know that applying for a loan can be a tense process. So, I want to make it as easy and smooth as possible by being available and responsive. My clients know they can call, text, or email any time and expect a quick reply. We’re in touch at every step.
Q9. What excites you about your work right now?
Every closing is an exciting, life-changing moment! Buying a home is one of the biggest steps of a person’s life. It takes a family to the next stage of life, to a better future. I’m excited to be part of that process.
Q10.How should a potential home buyer reach out to you to get a loan?
Call, text, or email me directly, and I’ll get back to you right away.
Ask me any questions – your consultation is FREE. I’m happy to assist!
For more such insights, visit Home.LLC