Pre-Qualifying: Why It's Easier than You Thought!

One of the biggest decisions in anyone’s life is when to buy a home, and a lot of first-time homebuyers see the process as impossible and terrifying. This is mainly due to this large amount of pressure and fear that most people feel when they consider applying, even if they qualify.

It is no surprise that mortgage lenders have become significantly more reserved since the market crash of 2008. Since then, it is common to think that the only way to qualify for a mortgage is to have a perfect credit score and be flush with cash. This is not the case. Believe it or not, for most first-time homebuyers to qualify for a mortgage, all they need is a decent credit score, verifiable income, and some money for a down payment.

Based on findings published by Fannie Mae in June of 2019, most consumers think the minimum credit score to qualify is higher than it is (580 vs 650). They also believe the minimum down payment needs to be a lot more than it is (3% vs 10%). This gross overestimation has been driven by lack of information and research. The overestimate is also a clear indicator that the general sentiment of consumers considering a mortgage is fear.

What is the flip side of the estimates? Do you have a job? Check. Do you pay your bills on time and have little to no debt? Check. Do you have a savings? Check.

These three criteria are the main considerations with most lenders, especially with first-time homebuyers. Knowing this, you can take a breath and get rid of some of the stress when considering applying for a loan.

Let’s face the facts: Getting denied for a loan can be a speed bump in the home finance process. It’s defeating, and consumers would rather rent or wait until they come across a hefty amount of cash before even considering applying. The good news is that the Loan Officer who assists you with the loan is more than just a number-crunching machine. If you find you do not qualify for a loan just yet, the Loan Officer will provide you with guidance on what to be better prepared for next time. He or she is here to help, whether that means preparing you for a loan, or preparing you for your next application.

All things considered, the first step in any process is to consult a Loan Officer. Doing this will assist you in making a well-informed decision based on suggestions from the experts.

To contact the talented and helpful Loan Officers at Prospect Financial, check out this link:

https://www.prospecthomefinance.com/contact-us/

To receive updated rates and a no-obligation quote, you can find that here:

https://www.prospecthomefinance.com/get-a-quote-today/

Jason Vondrak

Company President

Prospect Financial Group

948 Garnet Avenue

San Diego, CA 92109

NMLS: 349089 | BRE: 01837707

Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.

"I've had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership."