Mortgage Broker Santa Monica | Common Questions Applicants Ask During the Pre-Approval Process

Is there any cost associated with going through the pre-approval process?

Mortgage Broker Santa Monica – The pre-approval process is a free, no-obligation way to determine your home-buying budget. Getting pre-approved with a mortgage broker will allow you to view more homes because some require a letter just to view the home, but it will also signal to the seller that your offer should be taken seriously because you have been qualified and can successfully purchase the home.

Question: How long does my down payment need to be in my account?

60 Days

I have a bankruptcy. Can I still be pre-approved?

Yes, you can still get pre-approved for a mortgage and buy a house. It all depends on the nature of the bankruptcy. We will need a copy of your bankruptcy papers, but you can be pre-approved and possibly still use an FHA loan.

I own another property and the previous lender said I would not qualify to purchase another home based on DTI. Does this mean I cannot purchase a home?

Yes, you can still get pre-approved for a mortgage and buy a house. It all depends on the nature of the bankruptcy. We will need a copy of your bankruptcy papers, but you can be pre-approved and possibly still use an FHA loan.

I owe IRS money. What should I do?

We advise you to work with the IRS to develop an installment plan. That installment plan will be financed similarly to a car loan.

I have a co-borrower(s) do they need to fill out the application as well or just me?

If you are married, you can submit a single application that includes information from both partners. If you are not, we will require an application from each applicant.

I have had my credit pulled by another lender. Can I still work with your team?

Yes, please contact us we are happy to help.

Does pulling a credit report hurt score for a mortgage?

If you are applying for a mortgage and have not yet checked your credit report for errors, you should do so right away. A free copy of your credit report is available at www.annualcreditreport.com. Obtaining your own credit score has no effect on your credit.

How many times is the credit report pulled for a mortgage?

Lenders check borrowers’ credit at the start of the approval process and again just before closing.

How much does a mortgage inquiry drop your credit score?

According to FICO, a new hard credit inquiry will only lower your credit score by one to five points for most people. While a hard inquiry remains on your credit report for two years, it only has a one-year impact on your score.

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