MAP6 IS A ROAD MAP TO HOME LOAN PRE-QUALIFICATION
The concept of our “Mortgage Road Map”, is to understand your current needs regarding a mortgage qualification (i.e. credit, income, etc.). In order for our team to determine and create your personalized Mortgage Action Plan (MAP6) we will need to analyze your objectives and tailor the plan that you can put into motion. Each client has a goal and set of potential challenges when applying for a home loan. Our job will be to help you bridge the gap with knowledge and key action plans that will make the difference between an applicant’s approval and decline.
Our program has identified 6 Key Components that play a vital role in your home loan approval process. These components are Employment, Income, Debt, Credit and Assets. We have discovered that by systematically fixing one component at a time, we will have greatly increased an applicant’s chance for a mortgage approval. The amount of work for each component varies, as each person presents a unique process.
- Employment: All lenders are looking for stability in employment history (particularly 2+ years). Our goal is to help you understand the importance of job stability and the impact that this has on your loan. Employment changes are all too common in today’s environment. We will help assist in determining your risk level during this transition. We will provide expert advice and direction to ensure the risks associated with any change, will have little effect on the strength of your profile.
- Income: After reviewing the last 2 years of your tax returns, W2’s, 1099’s (if applicable) and the last 30 days of your current paystubs, we are now able to confirm income. These documents will not only help us verify your monthly income, but will provide us with the accurate amount that we can use to qualify you for a home mortgage loan. This is very important when projecting the home value for you can qualify to purchase.
- Debt: The ability for you to manage a proper debt ratio plays a very important role in determining your approval. Each type of mortgage loan (i.e. FHA, Conventional, etc.) have its own debt ratio requirements that must be met in order to be approved. We will look at these debts closely to ensure that you are within the acceptable ratio for the loan that you will be applying for. We will plan accordingly and make changes (if needed) to meet a specified debt ratio for an approval. These plans will be clearly identified on your “Mortgage Road Map.”
- Credit: We will run a credit report from all three credit bureaus (Equifax, Transunion & Experian), so that we can see your entire credit profile and have a basis to start the credit process. Through credit we will see the good, the bad and in some cases the unknown. Often times there are items that appear on your credit that don’t belong to you and/or have been misreported, due to the negligence of any number of creditors from your past. Our goal is to determine where we need to be, what we need to do in order to get there and the timeline in which this should happen. Understanding how credit scores work can ultimately save you money.
- Assets: A commonly overlooked item for qualification are assets. The assets you provide will help strengthen your loan profile. In many cases, assets are not only used for the down payment, but to show the lender that you have the ability to save money and in the event of future hardship, you have the ability to pay your mortgage. Reserves increase the probability of an approval and in some cases can also serve as a compensating factor for a negative attribute related to a previous loan component. We will assist in helping you determine the amount of assets that are required for an approval and if necessary, create a savings plan to determine a timeline for your goals.
- Property: Choosing the right property will affect many items such as required down payment, rate, and loan program. It’s important to understand the differences on how types of properties can and will affect the loan that you are applying for. Your mortgage professional can assist you and your real estate agent on choosing the right loan fit for the property of your choice.
Plan of Action
The last step is putting it all together and determining what your personalized MAP6 looks like. We use a single page “Mortgage Road MAP”, where we outline everything that we have formulated from the 6 components that we’ve reviewed with you.
Our end goal is to follow everything that we outlined on your “Mortgage Road MAP” to homeownership. It’s a simple yet wonderful tool for people that like to set goals and visually be reminded of their action plan. We encourage everyone to put them on their phone, on their refrigerators and/or everywhere else as a constant reminder of what needs to be done in order to accomplish the goal of owning a home.
We have received many testimonials over the years from very happy homeowners that took advantage of this opportunity to educate and establish a plan.
Our goal is to educate you and provide you the tools (via our “Mortgage Action Plan”) towards buying a home. We hope that during the process you will share your experiences and encourage other interested home buyers to contact us.
Please feel free and contact us right away with any questions or concerns via email or a simple call away. We look forward to working with you!