Pre-Qualifying Mistakes To Avoid (First Time Home Buyers)

you've been researching how to buy a house and you probably know by now getting pre-qualified or pre-approved is one of the first essential steps to the process might i even say the first step you need to take and it sounds like something as simple as calling a lender but something so simple can be turned into something so terrible just like this colored shirt i'm wearing is it yellow mustard baby poop yellow green i don't know maybe the lights behind me isn't helping is that better how about green but anyways in today's video i want to talk to you about the crucial mistakes that you need to make sure to avoid when you're in the pre-qualification process let's start off by clarifying what it means to pre-qualify or pre-approve essentially when it's time for you to see how much of house you qualify for you have a conversation with a loan officer or a mortgage broker mortgage banker someone who is essentially licensed to take your application to then present it to underwriter or some kind of underwriting system based off a lot of factors like your debt to income ratio your credit score your job history uh all that stuff they'll be able to come back and tell you hey you're pre-approved for that amount now let's stop here and let's address something the question i get all the freaking time is javier should i talk to the agent first or the lender first this is going to sound super shocking but it should be universally low low noon known that you should speak to a lender first i know shocking but the thing is is that this idea that you should go talk to the person who's in charge of the sale of the house or in other words realtor so then they have the power to choose which lender they send you to is kind of scary and once again i'm totally being hypocritical right here here i am being a realtor and i personally always prefer when a client comes to me first now i'm not saying you shouldn't talk to the realtor first you might talk to the realtor first i'm saying that the actual real raw work should begin with the lender because before you go look at any houses and start the sales process you have to know if you fit the mold you want to know if you even pre-approve you don't want to go waste your valuable time and energy looking at properties falling in love getting emotional steak to these houses only to find out that you don't even qualify for it and the real houses you're going to qualify for are nothing compared to that one so if your realtor says hey let's go look at some houses and you're not even pre-approved no don't do it you know you might want to do it you know you're excited but just stop yourself because really think about what you're doing here you want to make sure to go get the pre-approval done first okay now the reason why realtors are usually the first people that people talk to is because quite frankly we market towards consumers we are doing open houses we have possessions of the houses you go on zillow you go on realtor.com and there is a realtor there with a smile and a lot of times you know you start that initiation first and then they then send you to their preferred lender now lenders there it's very rare but most of the time they're not marketing towards you they're marketing towards realtors they're taking realtors out to lunch they're trying to service real estate agents so that way they get those leads very rarely do lenders actually promote themselves to out there so so in short words here's my super duper efficient list of who you quickly should hire first okay if you have a trusted friend or family member use them first go to them first i don't care if they're a realtor or lender you reach out to them first because they trust you they're gonna take care of you they're gonna get you connected if you don't have anyone that fits that bill then you hopefully a few months before you start looking you start following lenders you start following realtors online and you start really getting an idea of who you like or if you don't want to take that approach call a few friends family members and ask for their recommended realtor or lender now you don't call these people right away you start researching them online do you like them do you like the reviews do you like their social media you know nowadays we're in a world whether you like it or not where the way you present yourself online is going to be the best form of yourself and if the best form of themselves is not even attractive enough not attractive as in physical looks because i got you beat every single time on that talking more about like what kind of person you are and that's a kind of energy you want to be around and that's the best version of themself online if that's not even good enough then you're probably not going to like them in person right quite frankly the best realtors and lenders out there don't even have social media they're just like this people that just hustle and they don't really do that but unfortunately it's hard to find those people you know how are you gonna do that the second mistake that most people do with their pre-approval is this it's the shop around for the wrong things now i'm gonna put this into two categories okay the first category is for those buyers out there that don't give a crap about relationships they want the cheapest number they don't care who gives it to them or what they have to do to get it you want a two point six one percent interest rate and you're going to freaking find it you don't care how many heads you have to smash how many yellow mustard shirts you have to buy you're gonna find the lowest number and then there's a second folks that are like yes of course i want a good deal but i also want to be taken care of i don't want to be taken advantage of here i want to make sure that if i have questions that's freaking saturday at 4 pm i don't have to wait till freaking tuesday at noon to get a call back i want to make sure there's someone there to guide me and reassure me okay there's no wrong or right here the second option aren't people that are just like don't take any interest no of course they want the best interest rate likewise the first people are like complete robots or i get it there's but usually you're gonna fit into one of these two bills you probably were expecting me for my second one to say make sure to get more than three loans or make sure to shop around your loan that's i don't agree with this sentiment because here's the thing if you are totally the first category like 2a that's then be here for you you're going to love that yes 100 shop around your loan you probably didn't need me to tell you that you're already going to do that and i'll give you my list of lenders that i recommend you shop around for to get the best deal a little bit later but you don't need me to tell you that because that's something you're going to do already now for everybody else the reason why i didn't say shop around five lenders or two lenders or three lenders is because i feel you're shopping around for the wrong thing now when you shop around lenders okay the interest rate they give you isn't the guaranteed rate but it's not the rate that they're going to guarantee for sure it's either an estimate of the last 30 days that they're able to give or it's a very rough estimate of whether they think they're going to be able to get you depending on either the formula they're using to calculate interest rates how they're going or anything along those lines so that rate they're giving you or you're quoting being quoted is not guaranteed and the thing you can shop around for sure are the closing fees like what are they charging for like the underwriting fee and stuff like that so of course i'm not telling you to be blind and not look at these numbers definitely look at the interest rate looking at the closing costs and all that stuff but what i'm saying is a first-time home buyer who's a little nervous these are not the only factors you need to be shopping around for the robots are going to look at the details let them look at that for you you're shopping around the wrong categories you just also need to shop around for the following things character are they reliable do they communicate effectively do they communicate promptly i'm not i don't expect people to respond with me within seconds i just expect you to respond to me saying hey i can't answer right now but i'll touch base in an hour everybody has different levels of it and sometimes that agent or lender might seem very amazing online but maybe they're just a little too busy and you know what i'm guilty of that sometimes too so yes when you look shopping around these guys looking numbers you want to look at their character want to look at this is this the type of person that i want working for me because the fact is they're not going to be able to guarantee any rate until you're under contract and who is going to be the one that really is going to stand up for you when the rubber hits the road that's the second big mistake people make is just simply shopping around for numbers and offer of the character and for other things like that now as a little bonus there like i said i was going to give you one if you're gonna shop around you know two three four lenders this is what i recommend you do uh get a quote from an online lender uh literally better mortgage any of those other ones they're going to probably be the cheapest out of everybody but you want to use this tactfully okay so get that and don't just settle for the email they send you saying hey you're pre-approved no like really when they reach out to you say i need my state pre-qualification form i am in i would say arizona they require an aarp qualification form so to tell them i don't want just the email i want my state's version of the pre-qualification form once you do that you want to talk to a local mortgage banker or broker mortgage banker margin brokers are those that are you know local based working usually with realtors not necessarily they don't usually have like local locations but i'm sure if you talk to an agent they'll recommend you a few the third one is going to be a credit union of some sorts now i'm throwing this as a gimme i don't really think they're the best every single time um but you know if it makes you feel better shop around with the credit union uh reach out to them especially if you're a member of one and see what they do and of course the fourth and final one being a big bank you know talk to bank of america wells fargo chase whatever so when you're talking to those last two i told you you want to make sure to ask how reliable like how efficient you are because one of the biggest complaints we get from those type of companies is they take forever to close i'm very important that you talk to them saying you're going to be available on a saturday afternoon or you're going to be able to nine to five i need you to be ready and available for me if you really insist on getting all four of them there's gonna be there's gonna be two of them there's gonna be one that has the best numbers and there's gonna be one that you had a better connection with okay very rarely do you get one the best numbers and best connection with what you want to do here is you send your best number uh loan estimate to the lender who you had the better connection with and you're going to say hey i really want to work with you i've been shopping around my loan can you please please please do me a favor here and do your best to match these numbers if not unfortunately i'm gonna have to work with the other one and see what they can do even if they kind of meet you like like a little halfway or they're like they can only match it to a certain point that's fine you're going to get the better numbers because you told them already that you like working with them and you want to work with them they're going to feel that if they really step up here they're going to guarantee to get you as a client and that's going to put you in the best spot to get a better deal the third and final mistake you can make when you're pre-qualifying or pre-approving uh for a mortgage is to just simply get one loan so here's the thing people by now know that there's fha loans there's conventional loans you might be better and you go for va you might think there's down payment assistance and you talk to a lender and they come back and they go hey here you are you're pre-poo for fha congrats and you're just like cool then you guys find me on youtube and you email me i'm here they're telling me how they qualify for fha what do i do okay for some reason all you guys are scared to talk to your lender don't that's that should be another one don't be scared to talk to your lender they don't ask for different scenarios right so the lenders automatically give you one scenario like very rarely is the lender going to come to you and say hey so here's the different options you qualified for that's like an amazing lender and if your lender does that originally send him this video and and tell him i'm giving him a wink of approval a lot of them just send you like the what this is what i think you want no like tell them to give you the different scenarios tell me if fha doesn't make sense for me i don't give a sh tell me what the numbers look like with fha tell me how the numbers look like for conventional three percent five percent ten down tell me how the numbers look for down payment assistance give me the closing cost estimate give me the estimated interest rate give me the estimated monthly payment let me as the buyer choose what is best for me or in this case you you're there to be educated and guided but you're not there to have the decisions made for you this is also very crucial when you're like like 690 or 680 you're almost a conventional and they just throw you an fha approval she's like dude give me what i need to do to get my my score up to conventional and tell me what the numbers are going to look like then so i can make the decision to see if it's actually going to be worth to do a little extra effort i know this might not seem like oh it's a mistake that people make because it's something that lenders should just simply do but unfortunately they don't so take the initiative to make them step up and say hey i want the different scenarios this would be really great if to give you extra buying power she might qualify for 10 down and 5 down well having those both pre-approvals ready to go is helpful because you might find a house where you might have to give a little to the seller you know that five percent might have to go somewhere else so you're going to then submit the five percent pre-approval when you're also doing this make sure that you get two kind of pre-approvals okay make sure you get the pre-approval for with the monthly payment that you want and make sure to get the pre-approval for the max pre-qualification amount don't show your realtor the max pre-qualification amount one don't show i mean if you trust them show it to them but you know try to stay use this one and only pull out the one with the max pre-call unless for a really good house you know what i mean so that's it guys those are the top three pre-approval tips or mistakes i meant to avoid when you're pre-qualification for a frick what the heck am i saying let me know if you've maybe made one of these mistakes or if one of these tips were extra helpful or maybe if you have any tips you know what i mean if you're looking for an agent referral have a great program down below click the link in the description to get an agent referral in any state in the country go ahead and check it out and other than that thank you for your time i appreciate you have a good day

Channel: Javier Vidana

Views: 64,005

Keywords: Javier Vidana, first time home buyer, buying a house, real estate, first time home buyer tips, buying a home, first time home buyers, how to buy a house, down payment assistance, first time home buyer mistakes, how to buy a home, first time homebuyer, first time home buyers tips and advice, first time home buyer 2021, buying a home in 2021

Id: -tb5JE4mdVM

Length: 13min 7sec (787 seconds)

Published: Fri Jul 02 2021