Easily Get PreQualified
Mark Mawby, one of our preferred lenders and the VP of Lending for Aurora Financial, was kind enough to provide us with a guest post on getting prequalified (or pre-approved) for first time buyers:
Mark and EveryHome co-founder Katie Kennedy
The first step is to get “PreQualified” from a lender. This will help you when it is time to make an offer on a home, as your agent will need to submit the pre-qualification letter along with your offer for the new home. Getting prequalified early will also help identify any potential issues with being approved for a mortgage early in the process and give you time to address any issues. Getting prequalified earlywill also give you more time to go over the many different loan programs that you qualify for, so that you are armed to make a good decision about the loan product that works best for you. Additionally, there are many programs out there specifically geared towards first time home buyers, which have qualification standards that are easier to meet. Some examples include FHA, VA, PHFA, and USDA.
To Qualify is relatively easy. You may be qualified and not even know that you meet the requirements. You need to demonstrate three things as part of your application.
- Income ( you need to demonstrate a two year work history. Note* attending college, or any certificated trade school counts towards the work history. IF you are not showing enough income a co-signer may help to overcome this)
- Assets ( you need to show enough assets/savings for your down payment and closing costs. In some cases you can have a gift from a relative, or seller assist from the seller of the home to help with this piece of the puzzle )
- Credit ( this is the only piece of the puzzle that has NO work around. You need to have established credit. Things like Student loans, car loans, and credit cards with establish a credit history for you. The score requirements will vary depending on the loan type you are applying for. First time buyer programs typically have easier standards to meet. This is also something that can be addressed by starting the pre-qualification process early, as a lender will let you know what your scores are, and may even be able to provide some guidance to help resolve some issues)
- There are other pieces of the puzzle, that said this is meant to be an overview of the most common items that occur for a first time buyer. If you are thinking of buying a home anytime in the near future, I would strongly encourage you to reach out to me or another lender and get prequalified. Again this will help identify any items that may need to be addressed. It will also arm you with options to help overcome obstacles as mentioned above.
You can start the process by completing an application. This can be done over the phone in about 15 minutes, by reaching out to me. we will spend as much time as needed to address any questions/concerns you may have. You can also start by completing the application online. Follow the link to my web page (click here!), and click the button that says “Apply Here” If you have any questions about the process please feel free to reach out to me at 215 990 8580 or mmawby@auroralending.com