Pre-Approval is a sign of readiness and is considered a prerequisite for serious consideration of your offer in Silicon Valley. Getting pre-approved by a local lender or mortgage broker and allows us to define the financial parameters of your home search as well as which neighborhoods to consider. Compared to “Pre-Qualification”, which is essentially an opinion letter from a bank, “Pre-Approved” means the loan is set to go and provides buying leverage if you find a home you want.
Generally, you should begin the pre-approval process immediately after meeting with your agent. If any issues come up, such as inaccuracies that may negatively affect your credit score, you will have time to resolve them.
I am able to connect you with our network of trusted brokers and loan agents who will get you the best service and interest rate. I’ll advocate for you during this phase, answering questions and helping you every step of the way. My recommendations are completely free of any conflict of interest as I do not benefit monetarily from providing recommendations.
Things to Avoid During the Loan Process
I recommend you make every effort to avoid these actions at the risk of slowing down the process of financing your new home.
Best NOT To:
Buy or lease a new automobile
- This is a good time to be mindful of anything that may affect your debt-to-income ratio. New payments, particularly large ones, may detrimentally impact your ability to obtain a loan.
Run a credit report on yourself (or your spouse, if applicable)
- All inquiries must be explained in writing so it is advisable to avoid doing at this time.
Consolidate your bills prior to meeting with your lender
- Speak to your lender first about any financial maneuvering to avoid delaying your loan approval.
Make major purchases, such as appliances or furniture
- Purchasing anything at this time can potentially increase your debt and reduce your chance for an optimal loan.
Move your financial assets around
- During this process, everything on your financial dashboard will be examined carefully. You must disclose and document everything you do so it is highly recommended that you keep your accounts free and clear of complications.
Pack or ship important loan documents
- We recommend that you keep a file on hand with important documents like W-2 forms, Tax Returns, Divorce Decrees, and any other supporting information. It is wise to be prepared with these items right up to the close of escrow.
- The probationary period that often comes with new employment can jeopardize your ability to qualify for a loan.