Looking to purchase in November 2015. When should I start the loan procurement process?

As soon as possible so you know what you qualify for and also lender's can offer great financial advice on how to increase your score to qualify for better rate.

Once you know your number you can start watching the market in the area your interested in and know what is within your budget so that when it's time to buy you will ready.

Hi Marcus,

Congratulations on your decision to purchase a home!

Given you want to close on a home in November of this year I would take a couple things into consideration in planning for when to begin the approval process.

1) When will your taxes be filed? - Are you filing an extension? I would strive to get these done soon, if possible, since approval takes into consideration your last 2 years of tax returns.
2) Are you going to be changing jobs within this period of time and, if so, are you staying in the same line of work? This is of important!
3) Are you W-2, Commissioned, or Self-Employed? W-2 employees are the "easiest" to approve. If commissioned, it has to be established for 2 years. If Self-Employed, this is the most challenging. I'd suggest speaking with a lender right away with experience working with the self-employed.

All that beings said, it's a good idea to speak with someone now in planning ahead. Your lender will ask for things such as: 2 years of W-2s or 1099s, last month to 2 months of pay stubs, two months of bank statements, a list of assets and debts, run your credit, etc. You want your lender to compile this information in order to determine up front what loan program works best for you, the amount of funds you need to have available to you in November (keep in mind seasoning requirements for deposits amounts and certain financing options don't allow "gifts."). While they will update your documents on file with the most recent come September/October when you start looking for a home, it's a good idea to know where you stand now. Sometimes there are minor things on your credit report that, if taken care of ahead of time, can bump your credit score and thus give you different financing options.

Here are a few lenders that I have clients working with and have had positive experience with:

Joey Walker
Homeway Mortgage
Office: (281) 565-8500 ext 117
Cell: (863) 673-4891
joeyw@hwmtg.com

Stephanie Wood
Core Lending
O) 936.521.7196
(C) 281.799.6601
Stephanie@mamcusa.com

Amanda Wilkie
Amcap Mortgage
281.863.9116 office
832.689.9669 cell
awilkie@amcap1.com

Let me know if I can be of any more assistance. Feel free to shoot me a text or email or give me a call, I'm happy to help!

Darby Grimmett
Keller Williams
darby@darbygrimmett.com
936-827-9217

The process of getting pre-qualified take a very short time, a few hours at most. It will make a small ding in your score when you do it. If you think there may be a problem with qualifying then it's best to talk to a lender right away to give you time to fix what is needed. You can find out what is needed to purchase, how much money you will need for the down payment, option money, inspections, appraisal, closing cost at the title company etc so there are no surprises. The better prepared and knowledgeable you are about the process the smoother it will go. Have fun, call me if you have any questions.

It's better to get it checked, sooner the better. That way if there are any issues with your credit you have time to take care of. If you are looking for a good lender feel free to shoot me an email. Goodluck.

Beginning the process before you need it is always good advice. I'd suggest completing your 2014 tax returns first, since the lender will want two years worth of returns, and then contacting a few lenders for comparison. This will give you time in case you have some credit issues that need to corrected, a credit score improved, or any other items that might need to be addressed to make the process smoother when you do buy. If you'd like some names of lenders or what questions to ask, I'd be happy to share. If you already have a Realtor, they will have this information as well. Once you have selected a lender, filled out an application etc and been pre-approved, you will know your target price range and your lender will simply need to update your file just before you begin your home search (double-checking credit, updated statements etc.) Best of luck - great question!