Walk with Summit and Have Peace of Mind.
Summit Mortgage offers the tools and expertise to guide homebuyers through every step of the home-buying process, ensuring a smooth and confident experience. From an amazing pre-approval program (Seller’s Choice Underwriting Guarantee) to expert advice, Summit Mortgage is dedicated to helping buyers make informed decisions with peace of mind, so they can focus on the excitement of finding and purchasing their new home.
How can our Seller's Choice guarantee AMPLIFY your offer?
Make an offer with confidence! For qualifying borrowers, if your loan doesn’t close according to the terms of the Guarantee Letter, we’ll purchase the home in cash or pay the seller $10,000 out of our own pocket.
- Let your Real Estate Agent know you’re committed to success.
- Feel confident you’re FULLY approved.
- Make sure your offer is at the top of the pile.
- Instill confidence in the seller that your offer is SOLID.
- Minimize anxiety through the homebuying process.
Some limitations may apply.
First-Time Homebuyer Qualifications and Benefits
Are you wondering if you qualify for first-time homebuyer programs? The term might be misleading. You don’t actually have to be purchasing your first home to be considered a first-time homebuyer. Confused? Don’t be! First-time homebuyer benefits can offer significant financial savings and help make owning your own home a reality. Don’t let the name hold you back from achieving the American dream of homeownership. Let’s explore how you could qualify for these home loan programs.
Understanding Mortgage Pre-Approval Guarantee
Getting a mortgage pre-approval can be a big advantage in the competitive housing market. While a true “mortgage pre-approval guarantee” doesn’t exist, you can take steps to strengthen your pre-approval. This post explores how to make your pre-approval as strong as possible and what it truly entails.
Understanding Mortgage Pre-Approval
A mortgage pre-approval means a lender reviews your finances. This includes your income, credit score, and debt-to-income ratio (DTI).
The lender uses this information to decide how much they’re willing to loan you. It’s more thorough than pre-qualification, which offers just a basic estimate.
Why a "Mortgage Pre-Approval Guarantee" Is Misleading
The term “mortgage pre-approval guarantee” can be misleading. Pre-approval shows sellers you’re serious, but it’s not a funding guarantee.
Things can change after pre-approval. Changes to your income, choosing a different house, or new negative information on your credit report can affect the loan. Even mistakes by the lender can impact the final approval.
Think of pre-approval as the lender saying, “Based on current information, this is the loan amount you qualify for.” A full underwriting review may uncover additional information that alters the initial decision.
Making Your Mortgage Pre-Approval Stronger
A first-time homebuyer often gathers these documents ahead of time.
Check Your Credit Reports
Review your credit report from all three credit bureaus at AnnualCreditReport.com. A minimum credit score of 620 is often needed for a conventional loan. FHA loans require a minimum score of 500, with some lenders going as low as 580.
Dispute any errors on your credit reports . Knowing your current credit score and fixing errors gives you a clear view of your loan application strength.
Explore available loan programs based on your credit score and financial situation. Compare credit cards and learn about managing credit card debt.
Manage Your Debt-to-Income Ratio (DTI)
Ideally, your DTI should be below 36%, with 43% often being the highest lenders will go. This makes you a more desirable borrower.
This ratio shows lenders you can manage debt payments. It can impact the mortgage rates you are offered as well. Using tools such as mortgage calculators, savings calculators, and other financial tools can be beneficial for managing and preparing your financial resources.
Avoid Significant Financial Changes
Avoid making big purchases like buying a car, applying for multiple offers on other loans, and changing jobs. During the pre-approval period, consistent finances strengthen your application.
Keep your financial picture straightforward for the lender. Stability demonstrates readiness for a mortgage.
These changes can alter your DTI, impacting pre-approval outcomes.
Work With an Experienced Mortgage Professional
Consulting a mortgage professional before getting pre-approved can be valuable. They can provide personalized guidance.
An experienced mortgage lender can help you find suitable loan options, considering a refinance calculator for existing homeowners. They will consider many things like the state of mortgage rates and whether refinancing makes sense. Consulting multiple lenders allows you to consider different opinions and lender reviews. They can help you explore a cash-out refinance, different refinance rates and whether it makes sense for you. If you have additional student loans or outstanding auto loans, they can help manage all the details as it impacts closing costs, etc.
Conclusion
A guaranteed mortgage pre-approval doesn’t exist. But, by being honest about your financial situation and preparing all necessary documents, including details like student loans, credit card debt, and checking accounts, you give yourself the best possible chance for pre-approval.
Being upfront about debt, income, and other financial aspects ensures a smoother process. Open communication with your lender is crucial for a successful closing. Having a well-funded savings account and understanding all the factors of getting a mortgage are all crucial steps in buying real estate.
Fill out the form below and our team will reach out to guide you!
APPROVED offers work harder in low inventory markets.
A pre-approval from Summit Mortgage is a great strategy to get your offer to the top of the list. Our company is respected and recognized by real estate agents working hard to get their clients to closing.
Derek Beisner
Branch Manager/Loan Officer
NMLS #288530
E: derekbeisner@summit-mortgage.com
C: 949.637.9939
Meet Derek Beisner, Branch Manager
My name is Derek Beisner. With over 24 years in this profession, I have developed a wealth of experience which allows me to help my clients navigate through their transaction with ease. My creative problem-solving, and forward-thinking sets me apart from the rest. It is a privilege to help you and I look forward to the opportunity to serve you.
My mortgage advice helps you build wealth and prosperity with real estate faster by helping you make smarter mortgage decisions. I manage your mortgage over time, to ensure you always have the best mortgage to achieve your family’s financial / retirement goals.
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- 9600 54th Ave N, Plymouth, MN 55442
summit-mortgage.com
9600 54th Ave N, Plymouth, MN 55442
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