Loans By Kathy: Can you pre-qualify me for a loan?

Can you pre-qualify me for a loan?

"Can you pre-qualify me for a loan?" is probably one of my favorite questions to be asked when I answer my phone.  For the most part, I know there is a good chance this individual will become one of my "Raving Fans" when they close on their new home.



We all know that the applications and all supporting documentation are being closely reviewed by the underwriters and conditions at times seem unbelievable on what seems to be a clean deal.  This is just the world we live in with the changes implemented by the Dodd-Frank legislation.  My story today, does not deal with the political implications, or my view on how this is impacting the mortgage industry, but rather about two individuals that I talked with today.




The first, a very nice woman who seems to have a fairly good understanding of what is going to be required, except when we discussed her credit.  She has paid a company nearly $1800 to "clean up her credit", only to be out $1800 and her credit score is no higher than when she started.  This type of company is in my opinion taking advantage of someone who has already encountered some difficult financial times. My advice, if you are going to hire someone to help you with your credit, be sure you know what services/guarantees they are providing.  After reviewing her credit report, paying down a couple of account balances will put them at a qualifying score.



The second, is a self-employed borrower.  Without a W-2 and regular pay stubs, it is necessary to use the individual's tax returns to show ability to repay the loan.  Unfortunately, this prospect, doesn't believe in paying tax, has multiple collections and judgments that they were unwilling to pay.  There isn't much I can do under this circumstance.


 For more specifics of what is required to qualify for a mortgage, please give me a call.


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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988



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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.


Comment balloon 3 commentsKathy Sheehan • August 31 2011 09:04PM


Kathy ~ My favorite line is I already have my pre-approval and would like to find a home. ;-)

Posted by Kristal Wilson, We Like 'Em New ~ New Home Specialist (Strategic Sales and Marketing) over 7 years ago

I just saw a lender in a restaurant tonight and he told me that starting tomorrow all GME's will be doing an appraisal review prior to settlement. . . what are your thoughts on that issue?  Please post a blog about it.

Posted by Joy Daniels (Joy Daniels Real Estate Group, Ltd.) over 7 years ago

Kathy, all you can do is try.  And, I know you are great at getting people the loans they need and can afford!

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) over 6 years ago