How To Get Pre Approved For Home Loan.

Hey, everybody. Kris Krohn here with REI TV. And today, we're going to be talking about the steps you need to take to go through to get yourself approved for a loan. Getting approved is going to require 3 things. The first thing for you to personally get approved for a loan, you're going to need a job. And typically, they want that job to be held for at least 2 years in the same industry. So, 6 months ago, if you quit one job and started another one, no problem as long as it's in the same industry. However, if you went from warehouse worker to surgeon, a little bit of a disconnect. They may not count that. And by the way, if you're young and you're in school, then go to school for 4 years and getting your job day one in the same industry will count for 4 years of work history. Kind of a cool little bonus piece there. The second thing you're going to need is developed credit. Not just credit or decent enough credit score but developed credit. Banks want to see at least 2 or 3 trade lines. They're going to want to see that you've been able to use them responsibly for again at least 2 years. 2 years is really kind of a magic number here. And so, that might be I have a Discover card and a Visa card and an American Express. Some banks will not actually recognize Discover the way they will MasterCard and Visa. So, have a couple of those on handy. Right now, whether you got good credit or bad credit, first of all, you got bad credit, go work on it. Check the link below. Reach out to our team. Talk to customer support. I've gotten over 800 credit score right now. And it's not because of how well I manage my credit as much as it is having a team that keeps it there. So, if you've made mistakes in the past with your credit or you have some illegitimate things on there, get it handled because your credit is an asset. Now, whether you can qualify for a $500 card for a student or whether you're older and you've got 30,000 lines of credit, sometimes people will actually shut down a bunch of credit cards. Don't do that. Keep your credit available. Make good wise choices. Use and pay them off. Use and pay them off, okay? 2 years history with at least 2 or 3 trade lines. The third and final thing you need is a job. Not just having that job but they want a history of you making a certain amount of money. Because they're going to look at how much you can qualify for. And ultimately, they're going to look at how much debt you have in your life and how much income. And they're looking for a magic ratio called a DTI. Debt-to-income ratio. So, you need a job that is making enough money against your expenses that there is a margin for actually being able to afford a house expense. Right now, if you're renting and you're paying $700 a month, then that's going to go away. So, you already know that $700 is going to get freed up. The question is can you free up enough for the margin? And that's why you get pre-approved long before you go out and actually house hunt. So, you're probably wondering, how much money can I actually get if I'm getting pre-approved? Well, that's the point of pre-approval is there's a magic number. What they're going to basically do is say, well, again like I shared earlier based on your credit, your job income or the different factors. Basically, we're calculating your DTI, your debt-to-income ratio and this is what you can qualify for. So, maybe I make $40,000 a year and I'm able to qualify for $140,000 home. Maybe I make $80,000 a year but I've got a lot of expenses in my life and so I still only qualify for 140,000. Or maybe I make 30,000 a year but I'm an excellent penny pincher. And I qualify for a whole lot more. So, what they're going to do is they're basically going to say, how much debt are you managing every month? And how much do we believe that you can really handle? Most banks just in general are going to qualify you for between 40 and 50% of debt. So, if I make $4,000 a month, then they believe you can handle $2,000 a month of debt. Well, think about that for a second. If I only have $400 a month of payments, then they say I could take on up to what? 1,600 more dollars in payments. Well, $1,600 based on today's interest rates means that I could qualify for a $220,000 house. Boom! There's your number. You get a pre-approval letter. Now, you can go into the marketplace and start making offers with confidence. And that my friends is the approval loan process. Now, by the way, I want to invite you to subscribe, see more of these videos. And if you'd like to receive a free approval process, then go ahead and click the link below. Have my team get in touch with you. I've got a team that buys hundreds of properties for me on a regular basis. And it only takes me a couple minutes a month to manage all of it. And yet just this week, I received another $80,000 check from selling one of my properties. So, if you want to access my entire team, click that link below and let's get started right away.