Explaining the Pre-Approval Process with Jason
Talking to Jason Fallon about pre-approvals, down payments, and more.
Today I’m joined by Jason Fallon from Movement Mortgage to discuss what you need to know about mortgages.
What does the mortgage-approval process look like?
A lot of people think the pre-approval process is scary, but it doesn’t have to be. It starts with filling in a short application online. From there, we follow up with a phone call, and once the numbers have been worked out, you send us some income and asset information. After we verify your documents, you’re pretty much all set. From start to finish, the process can take as little as 30 minutes of your time.
Does your pre-approval expire? If so, when?
Pre-approvals are typically good for 90 days. However, it’s really easy to renew your approval for another 90 days, so you don’t have much to worry about.
Do pre-approvals cost anything for buyers?
No, the process is totally free. The only thing it costs is a little bit of your time.
Do you need to run credit for a pre-approval? If so, will it affect your score?
When we pre-approve you, we need to do what’s called a hard credit pull. We’ll dig deep into your credit history, but whether or not it will affect your score depends. If we’re the only ones who have been looking at your credit in the last couple of months, you should have nothing to fear.
"The pre-approval process only costs a little bit of your time."
How much does a buyer typically need for a down payment?
It depends on your loan product. For example, VA loans don’t need anything down, but if you aren’t a veteran, you can still qualify for an FHA loan with only 3.5% down.
Is the down payment the only cost buyers need to pay?
Unfortunately, no. Besides the down payment, buyers need money for closing costs. Usually, these costs are between 4% and 5% of the purchase price. So if you need 3.5% down, you’ll need at least 7.5% of the purchase price saved up to qualify for a loan.
How does a buyer start the pre-approval process?
You can reach out to me at [email protected] or 215-327-2217, and I’ll walk you through everything you need to do!
I would like to thank Jason once again for joining me today. As always, if you have questions about this topic or anything else related to real estate, please call or email me. I look forward to hearing from you!