Simplicity of the Pre-Approval

The pre-approval process can be simple. The first step of the pre-approval only takes ten to twelve minutes when doing it online through a secure mortgage application system. 

You will simply provide some answers to some questions including providing your social security number. These questions are around your current income and other assets that you currently have. 

Transcript of the Video:

- Hi, I'm Jeff Chubb with REN Network. And today we're with Jason Bonarrigo of RMS Mortgage. Jason.

- Jeff. Hey, how are you doing? Thanks for coming.

- I appreciate it, thanks for having me.

- So, today we're going to talk about specifically the pre-approval process.

- Yeah.

- I constantly am hearing from clients, it's just the reason why they're not doing is it's overwhelming. They feel that it is overwhelming, it's overwhelming.

- They think it's overwhelming.

- They think it's overwhelming.

- They think it's overwhelming.

- And they don't actually end up taking the first step.

- No.

- And so, you know, tell me, so and I recently did the process, which was pretty seamless and easy.

- Right.

- But tell me, so what is that first step? So we make the introduction to the client and say, hey, it's Jason Bonarrigo, he's the greatest mortgage banker on the face of this earth, right?

- All the time, yeah.

- And at that point you kind of take it away. So, what happens?

- Yeah, obviously I just, you know I thank you for the referral. I reach out to the client and just ask them when the best time to chat is or whether it's over email or a text or obviously on the phone.

- Right.

- As well, I actually prefer it on the phone especially for that initial contact, because again, I get to make them feel comfortable and let them know that it's not, you know, it's not rocket science here. We're not going to be splitting the atom. It's just a quick application. 99% of my clients go online to do it right through to our app. It takes about 12 minutes.

- A secure app?

- Secure very, very secure.

- Right.

- And that's obviously the question that we get all the time with credit and secure documents and things.

- Yeah.

- But again, literally 11 to 12 minutes front to back just some basic stuff, you know, name, address where do you live, job title, things like that. And then, and that's really it.

- And that's for the prequalification, I mean, obviously the difference between the prequalification and actually getting approved for the loan.

- Sure.

- Are a lot different. And that's where a lot of the supporting documentation comes in.

- Right. Is that correct? But to your point, Jeff, once we have that, we have that, right.

- Right.

- We don't have to do it again. We have your, we have you on file. And whether you find a house in the next two days or the next three months, we have that we have that mortgage application and then it's really just adding some documentation here and there.

- Like updated pay stubs?

- Of course, right.

- Right.

- If you were three weeks away then we're going to need an updated pay stub or a bank statement to show that, you know the bank accounts were still rolling on. But other than that again, and we walk you through that. And that's the other reason that we like to get at least the core of the stuff, meaning W-2's and pay stubs upfront so that we have that foundation. And then it's like, you know what, go ahead. You're good for the next 90 days.

- Right.

- Go find a house talk to your realtor and then we'll be here for you.

- Well, 'cause ultimately, I mean, you know, you buy the house and if you've done more beforehand before, there's less to do kind of.

- Of course.

- When things kind of get going.

- When it really gets stressful.

- Yeah.

- 'Cause it is stressful we're not gonna pretend that it isn't right.

- Right.

- And when you're buying a house. it should be a little bit, it's exciting, it's stressful.

- Right.

- It's nerve racking, it's all that, you're a homeowner. But we have that taken care of, and again, we've done 80, 90% of the heavy lifting upfront.

- Okay, so 10 to 12 minutes go online. Do the application.

- Super simple.

- All online. You know, send you some supporting documentation that you might ask for. You know, let's do it a little bit easier up front, but if not, okay. You're available by phone, texts and emails. Should they have any questions for you.

- All the time. What about credit? So you're gonna pull credit correct?

- We're gonna pull credit as part of that, but they have to get permission for that.

- Right.

- And we'll discuss that with the client, but in the app there's a, basically a Authenticode that you put in that verifies the credit they give you permission, then we pull it and obviously we verify with them.

- Something that you've been really helpful with because a lot of times people will pull credit and look, I mean another great trick that you actually taught me is if you're just wondering and thinking, well is my credit, okay, is go into Experian.com.

- Sure.

- Where they'll actually give you your credit score for free.

- You can get the one score.

- Right and I found that really helpful for people who might think that they're a little on the edge and not quite want to go.

- That's the thing Jeff that we noticed the most is that most people are afraid of their credit.

- Right.

- It's not so much the overall process. That can be a little bit too, but it's really just I don't know what my credit is, I think it's this. I'm not sure I went on this website or that website, I mean.

- So just go to Experian.com.

- Go to Experian.com

- Which is one of the three.

- It's one of the three major credit bureaus.

- It's free.

- And it's free. You get one free every year. And then obviously you can, you can call me and verbally say, oh, my credit score is X it's 741, I feel like I'm in pretty good shape.

- Right.

- And I can give you the feedback on that. And obviously we decide, there's not gonna be any pressure to pull that credit. We'll talk about that, have dialogue on it.

- One more question.

- Yeah?

- In the credit aspect, is how badly does it affect my credit? When you pull my credit? How badly does it affect it?

- That's a great question because we get that all the time and everyone thinks every time you pull it it's a massive negative on your credit. And it really isn't. If we do a true mortgage inquiry there is not a negative impact.

- Right.

- Because the algorithm knows that you're shopping for a mortgage and have a mortgage inquiry. Now, if you went out to.

- An actual asset.

- An actual asset. If you went onto Best Buy or open three visa cards will then of course that's unsecured debt.

- Right.

- And that's revolving debt and the algorithm doesn't like that. So everyone is under the assumption, I can't pull it 'cause it's gonna go down and that's actually not true.

- Right, okay, great.

- So Yeah.

- Well, again, I'm Jeff Chubb. I'm here with Jason Bonarrigo of RMS Mortgage, my team, the Chubb Realty Group. We're happy to help you and answer any questions that you might have about the home buying process. He's happy and always available for you to answer any questions that you might have about the lending process but either way we look forward to chatting with you.