How to Get Pre-Approved for a Home Loan in Ukiah

Getting Pre-Approved in 6 Seconds? Here's What

You Really Need!

Hello, Ukiah friends! I’m Kasie Gray, a realtor, broker associate, and a proud local resident. Today, I’m excited to share some valuable insights on how to get pre-approved for a home loan. Whether you're looking to buy a home in six months or five years, understanding the pre-approval process is crucial. I had the pleasure of discussing this topic with Memo Zazueta from Nexa Mortgage, and we covered everything you need to know.

Quick Overview of the Pre-Approval Process

In just six seconds, here’s what you need to get pre-approved:

• 2 Years of Job History: Lenders need to see stable employment history.
• Proof of Income: At least 30 days of pay stubs.
• Established Credit: While you don't need a lot of credit, a good score helps.

For self-employed borrowers, the requirements are slightly different. You’ll need to provide tax returns for the past two years, along with business bank statements and profit and loss statements.

The Importance of Getting Pre-Approved

I often get asked, "Why do I need to get pre-approved?" Getting pre-approved is more important now than ever due to changing interest rates and market conditions. A pre-approval allows you to:

• Know Your Budget: Understand how much house you can afford.
• Shop Confidently: Make offers with confidence, knowing you have financing in place.
• Create a Plan: If you can't get approved now, we can create a plan to improve your finances and credit.

Factors Affecting Pre-Approval

1. Income and Employment: Your income and job stability are key factors. For a $400,000 home, a household income of $75,000 to $80,000 might suffice, depending on other debts and down payment.

2. Credit Score: Different loans require different scores. FHA loans might accept scores as low as 580, while conventional loans often require higher scores for better rates.

3. Debt-to-Income Ratio: Lenders will look at your overall debt in relation to your income.

Local Lender vs. Big Banks

Working with a local lender like Memo Zazueta can be advantageous. Local lenders understand the unique challenges of our market and offer personalized service. Unlike big banks, local lenders have fewer overheads and can provide more competitive rates and specialized products.

Soft Pull vs. Hard Pull

• Soft Pull: Doesn't affect your credit score and is often used by services like Credit Karma.
• Hard Pull: Required for pre-approval and has a minimal impact on your score unless done frequently.

Pro Tips

1. OptOutPrescreen.com: Before getting your credit pulled, visit this site to reduce unwanted solicitations.
2. Credit Monitoring: Use apps like Credit Karma or Credit Sesame to monitor your score and get advice on improving it without running your credit.

Final Thoughts

Getting pre-approved is a critical step in your home-buying journey. It's not as scary as it seems, and with the right guidance, you can navigate the process smoothly. If you have any questions about getting pre-approved, don’t hesitate to reach out to Memo Sasa or me.

📌 Useful Links:

• Explore recommended vendors: kasie.realtor/vendors
• Unlock all things Ukiah: kasie.realtor/unlockingukiah
• Free Home Buying Guide: kasie.realtor/buying-a-home

Stay tuned for more tips and local updates. Happy house hunting, Ukiah!