Alex Salas

Getting pre-approved to buy a home can be confusing. Here are some pointers on what a pre-approval is and isn’t. - A pre-approval is not a new loan or debt on your credit. - It is not a commitment to a mortgage, and it does not cost anything. - It is not a contract with the lender.... So what is it then? - A pre-approval is a formal letter you provide to sellers when you bid, confirming your creditworthiness. - It’s based on your credit, paystubs, savings, job history, etc. - It helps you know your max purchasing poweras well as required down payment and monthly payments for various home prices. The WORST thing is peeking at homes online, and suddenly finding the perfect home with offers due that day. When my wife and I shopped for our first home we used the same pre-approval for almost a year! It’s never too early to get pre-approved. If you have any lending questions just reach out!

I’ve pulled a LOT of credit reports over the years (in the thousands). I’ve seen scores in the 800s and I’ve seen scores in the 300s (super rare!). There are some misconceptions I hear consistently and want to clear some of them up. Having car loans, credit card debt, student loansthat’s generally good. The key is to make payments on time. When credit is extended to you, and you manage it well and make payments on time, it looks good for your credit report. Late payments on ...your phone bill or electric bill? Those almost never will show up in any fashion on your credit reportso if you’ve been scared to check your credit because of that, don’t fear! Same goes for overdrafting your checking accountthis also doesn’t appear on your credit report at all. I have no debt. this is tricky. It’s harder to measure whether somebody is a good credit risk when they don’t have any current experience managing debt. Feels like a punishment for being responsible and debt-free! This won't do you many favors but it usually doesn't hurt either. If you have questions about credit just ask!

If you're like me, you hesitate to refinance because you don't want your new mortgage to stretch back out a full 30 years. Personally I hated the idea of refinancing and having a loan that ends in 30 years rather than keeping my old loan which only had 27 years remaining. You can have the best of both worlds: Refinance at a new interest rate, and choose a custom term length (such as 27 years). That way your loan still ends on time, but you are potentially saving a TON of inte...rest! If you have questions I'm happy to help.

You can't win 'em all.. And it does sting to lose deals. But you can still be helpful and courteous. It doesn't cost anything.

Only 3% down payment is needed for loans up to $548,250. That means a $400k house/condo needs $12k for down payment. In some areas (like the Bay Area) you can get a loan up to $822,375 but the minimum down payment is 5%. So a $700k house/condo would require $35k for down payment. You don't need 20% down to buy a home!

Always nice when a complex transaction ends with happy, brand new homeowners!