How To Get Pre Approved For A Home Loan

Kris Krohn here with Limitless Wealth TV
and today we’re talking about the pre-approval process. This is going to be
the shortest most compact course you’ve ever had on how to know whether you want
to get pre-approved, use someone else’s credit so you can make that deal happen. Alright, man, you want to get out there
and it’s time for you to crush it in real estate and pre-approval is one of
the first things that you go to do so that you can know what you’re equipped
with. You might be in a position right now to buy real estate based on your
credit situation or you might not. Either way, as a bonus, I’m going to show you how
you can get real estate no matter what. But first let’s talk about that
pre-approval, let’s talk about how you make that happen. Really, it comes down to
the fact that we have all these banks and all of these banks are basically
saying “What programs do we have for you?” And all these programs are a little
different, they’re these lending programs and so first of all, you do need to know that
not every bank is created equal. When I went and I was preparing to buy my first
property, I was pushing the limit, I had barely two years of work history, I had
just gone from part-time pay up to full-time pay and I walked into a bank
that I had been banking with for years and by the time days later has done what
the pre-approval process, guess what they did? They denied me. And I’m like, crap! In my
mind I’m like, are all banks the same? I went to another popular bank in the area,
I went through that whole process and you know what, I got denied again. I only
had a couple of weeks left to finish my loan before this house it is my first
house this was going to create all this wealth that it has for me in my
life and as I didn’t even know that at the time I just knew that I needed to
get this deal done and that’s when I got smart and instead of going to a bank, I
went to a broker. Now in lending broker is different, this is someone that works
with many banks and I sat down with them I said I got a couple weeks left, I’m
trying to buy this house. I know I’m just kind of trying to squeak through this
bank turned me down, that bank turned me down and this is what they said “Not all
banks are created equal and there are different programs for different people.”
Let’s see your situation. Well, needless to say, by the time I needed to close on
the property, I got a loan. It was my first loan. And it wasn’t the bank that I
banked at that made it happen. It wasn’t the other bank on the corner
that I saw, it was dealing with a broker so this is what you’re looking for,
you’re looking for a loan officer because a loan officer that has access
to many banks is going to help you get pre-approved when maybe the bank you’re
most familiar with is not capable of giving you an approval. Now listen, you
can’t take it personal, banks are dealing with millions of people and at the end of the day,
it’s just ones and digits and they like someone’s and digits better than others.
There are some things that’ll work with low credit ratings and other banks that
won’t. There are some banks where they’ll say well you make a lot of money
but it’s stated income and it’s not reported as a W2 so we don’t like you
and this other bank says we’ll do stated all day long so understand this first
and foremost that people can get so discouraged in the lending process and
you got to toughen yourself up and get some elephant skin on there and just not
let that bother you so much, okay? And the reason why is because there’s all these
banks and if you give up, you’ll never know what you were really capable of
what you really could have done. Here’s what banks are going to look at:
Number one, debt to income ratio. They’re going to look at what are your ongoing
monthly obligations that you owe people for like well you owe on this car rental
and you owe on this and you all know on that student debt and then they want to
know how much leftover income do you have after you pay your bills. Oh! That
that will produce a debt to income ratio. How much debt do you have versus how
much you make. And that’s something that they’re going to look at they’re also going to
look at what you have for a down payment on a property. If it’s a home for you, I
love taking advantage of the 3% and 5% down payment programs. You know on a
$200,000 house 3% is 6 grand. But investor lending, you got to put 20%
down. 3% versus 20% right? So, 3% that’s awesome, that’s smokin’ on, I can take you
know, if you buy a house with $40,000 of equity and you put $6,000 down when that
deal is done you’re gonna walk away feeling like a hero because you’re going to
make a pile of money. They’re also going to want to know is this for you to live in
or is this an investment. Because those are two very different banking systems.
The lending rates and the things that you get when you’re buying a home for
you is more lenient with generally lower rates than buying an investment property.
Because the bank will say what’s higher risk? Kris living in a house, or Chris
putting someone else in the house. If it’s an investment properties, it’s higher
risk. Your interest rate may be a full percentage higher, 1% higher, half
a percent higher. All of those things are what the bank is looking at including your
hidden assets. 401k’s, IRA’s, any money that you have in equity and other properties.
Money that you have in savings and banks going to want to know for you put a down
payment, you’re going to have a little leftover in the bank and have three to
six months worth of payments still. Those are all the considerations that are
happening in the bank sides. Now, before you go find a loan officer, I want to
share two very important things with you, here’s the first one.. You need to have
your debt to income ratio which means the money that is forcibly going out
every month for obligations generally can’t be more than 50% of how
much you make. If it is, you’re probably not going to get approved. The second
thing is credit score. You got to have a credit score generally 680 or 700 or 720,
some banks will work with you at a 620 credit score but if you’re in the 500’s,
then you need to use the alternative bonus that I’m going to share with you a
little later. So you got to do some credit repair you got to get it your
credit maintained and up a little bit. And down payment, you got to have enough
for the down payment whether it’s 20% or 3% as well as five
three, four, five, six months worth of payments in the bank. So let’s say that
mortgage they’re going to be $800, the bank might want to see that after your down
payment you still have three, four, five, six thousand dollars left over in the
bank, they’re like, woo, something happens you lose your job, you got a couple
months before you get your next job and you can still make your payment and we
as the bank we’re not going down for it. Okay?
Now, if you’re not in one so if you do fall into that situation, the second
piece of advice I have for you is, how do you find a good loan officer? Okay, this
is very important. Find a successful loan officer. Successful means they do lots of
volume with lots of banks. Okay? This is really important, you can’t go to the
brother-in-law that’s the loan officer here. They can help you but if you want
to be helped the most, you got to go to the most successful loan officers out
there that every month do sign on many loans. You’re looking for one that is at
least doing at least five or eight loans a month and that means that they have
experience. If it’s investment lending that you need, not your primary residence,
then you need a final loan officer that specializes in in investment lending. So,
how many deals are they closing a month and number two, how many different banks
do they work? Well, we really have just one or two… Oh we’ve got 10 or 12! Okay,
the one that has the most volume and has the most banks is going to be able to
open up the most doors for you. Now, that’s what you do to get pre-approved.
Now where do you find loan officers? That’s easy. It’s this really cool new
technology called Google which is super super cool. Just Google and start looking
around and ask some people. Shoot, post on Facebook. Anyone here know you know on
your social media, anyone know a good loan officer? And then you can call an
interview. How many banks do you work with? How many deals are you doing a
month? They’re going to feel that that’s a little bit invasive but it’s all fair
for you to understand that information so you can pick the right person to work
with. So friends, that’s how you get
pre-approved on this. The last bonus piece I want to give you is, what do you
do if your credit is maxed out or if you have bad credit? Listen, do not associate
your self-worth or credit worthiness with just your credit score alone. Exceptions
happen, bankruptcies happen, divorce happens, life happens, job loss happens,
and sometimes people will allow one or two those moments to define their
creditworthiness for the rest of their life. I tell you right now, I have good
credit but I have good credit starting from a place where I didn’t have credit
at all and I needed to build it andnd there are times when my credit score
dropped because I had a lot of real estate and then I brought it back up and
I’ll tell you today, I’m using my personal credit for maybe four or five
properties and that’s it, which means that, how do I own all these other
properties if I’m not using my credit? Well friends, I’ll tell you right now, it
is my preference not to use my credit when dealing in the game of real estate.
I deal in partners, both for credit and for money. Someone brings credit to the
table, they get cut in on a on maybe 10% 15% of the deal. If someone comes to the
table and they bring money, they usually get cut on on 50% of the deal and that
is the best news that I have for you is if you’re determined to do real estate,
there’s only two things that will stop you. You don’t got the credit, you don’t
got the money. If you got those two things go out there and crush it and
blow it up but if those are getting in your way, I want you to click the link
here come to my website and I want you to investigate partner profits. I want
you to investigate a program where I show you how you can partner with anyone
how to find the people with the money how to find the people with the credit
and now you become the matchmaker, the deal maker and putting it all together.
If you want to learn more about that, check out the website because I’m going to
tell you right now, never allow a lack of credit or an overuse of credit to keep
you from doing the deal that you’re supposed to be doing right now. If you’re
looking for a loan officer that can rock it out for you, take care of you, that is
doing lots of real estate and has been doing lots of loans, and both the
investment world that is uber qualified, I want you to click the link. Get in
touch with me and my team and we’ll share with you exactly how we can help
you rock out your next real estate deal.

57 comments on “How To Get Pre Approved For A Home Loan”

  1. Josef says:

    Question : Let's say I get a 3-5% down payment for a house I'm going to live in , but I move out of the house in maybe 2 years , and rent it out . Do I have to pay higher interest rates on the mortgage if I decide to move out to rent it ? Really appreciate an answer

  2. collin says:

    So 3-5% down payment is only for when you plan on living in the home?

  3. e K says:

    What about 3-5% loans with renovations (203k) how would deal with that?

  4. Walter Mercado says:

    You get on your knees and start s….sweet talking the broker. ๐Ÿ˜‰

  5. rex the frenchie says:

    if grandparents give a 18 years old kid full payment for a house, can this kid use cash buy a house?

  6. Jeff Chesnut says:

    Thank you

  7. Carlo Magsino says:

    Thanks for making this video Kris,I feel like i bug u enough to make this kind of video. I win!lol Thanks again.

  8. Travis Hill says:

    Let's say I buy a house as a first time home buyer. Then in a year or two I put someone in that house can I then buy another house at a low down payment or does that go out the window when you purchase more than one house

  9. Ben says:

    Can i buy a primary residency for the 3% and put it on the market for sale right after I buy it?

  10. Luis J Espinal says:

    Thank for the vids brother, they're the best.. ๐Ÿ˜€

  11. Roberto Giant says:

    Thanks Chris thanks to you I bought my first house In Australia ๐Ÿ‘๐Ÿป

  12. FREEDOM Fintech says:

    God bless you.
    You really helped me

  13. A Scott says:

    Say I have a 120K house I want to buy (3% down) and I need a loan. How fast does it take to get said loan, and can I still make an offer (for consideration) without it?

  14. Michael R Henrize Sr says:

    1.5 is Ok. Now ok

  15. Nadia Alarian says:

    Kris, youre an amazing person for sharing this powerful information with us.. Thank you!

  16. Abraham Chavez says:

    Thanks so much for all your wisdom, Iโ€™ve learned so much in just a week of listening to you

  17. Dakota DellaFera says:

    Link isn't working.

  18. james ferguson says:

    Could you buy a $200,000 house with no deposit and just pay interest and pay back the principal when you sell how many banks offer that in the USA or canada

  19. Ashley Rowe says:

    How you buy a house in New York City with a 20k deposit down payment? Is it realistic and is it possible?

  20. RetRow B3 says:

    You keep looking to your left…reminds me of the crisis just sayin

  21. Destiny Homes W says:

    Nice. See you soon brother ๐Ÿ™๐Ÿฝ

  22. Bingo Boy says:


  23. Adam Hai says:

    First time home buyer In California what u suggest?

  24. Pijo Master says:

    Where do I find partners ?

  25. Teisha Sims says:

    What do you do when u are an identity theft victims and there's not enough credit on your background for a score 2b generated???

  26. JmansFragments says:

    cool video very informative

  27. SWEET DARCY says:

    Really Great Video! I like how well you explained this.

  28. Mirza ikram says:

    Iink is not working

  29. Mr.chuuk truetells says:

    i come to one major decision after this video..

  30. Free world says:

    Funny, how you forgetting to mentioned with low down payment. His/her mortgage is going to be skyrocket, not to mention PMI which goes into blackhole.

  31. Andrea De Nichilo says:

    Man deposit for loans in usa are freaking awesome, here in italy they go up to 35-40%! It's quite impossibile to real estate

  32. Elias Poulsen says:

    love them vids

  33. Lucy Mortgage Help says:

    Well said! brokers can do a lot more than banks!

  34. Glenda Rogers says:

    Excellent video thank u sooo much !!!

  35. Juliet Phiamphu says:

    True… Been there…

  36. zaiya isho says:

    wich one best( nsp lone or fha)? And which one the best

  37. Me Me says:

    So Iโ€™m a first time home buyer and want to buy a 210k house is it better to give a down payment of 2-5% or give 20%. What would benefit me the most?
    I would greatly appreciated if someone with experience or knowledge would answer me! Thank you.

  38. al713 713 says:

    Hi Kris, you mentioned both broker and loan officer. I am confused whom you sought for loan. Is it a mortgage broker or a loan officer?

  39. lisa williams says:

    i kept getting denied because of my bad credit but that changed when [email protected] got it fixed in days

  40. Byran Jodds says:

    i owe my perfect credit score to [email protected] they got me results in noo time at all just when i needed to get a home

  41. Ruby Dansel says:

    after my divorce my credit was a mess and im just glad my friends suggested i talk to [email protected] who fixed that up fast and got my life on track

  42. Academy for Entrepreneurs says:

    I need a mentor to point me in the right directions

  43. Muhammad Saleh says:

    Hellow im.from pakistan i need loan how apply

  44. Hararah says:

    i See Happy Faces

  45. Power Capital Solutions says:

    Awesome video!

  46. Bridgett Lawber says:

    Do you have to put your spouse on a deed if your married? Also if having low or not enough credit and with someone like sponce having no credit can it get you a ok loan?

  47. M B says:

    What to do if I have no job..

  48. Eric Arce says:

    So lets say i did a loan for a house i want to live in….but i end up ren it it since day one….i end up with better interest rate on a Real estate business….its is posible?

  49. Vetteacie says:

    What if my credit score is 720 but my debt to income ratio is 50%? Will I be approve?

  50. Nfor Rudolph Nfor says:

    You're a great teacher

  51. Sheena More says:

    Luxuryhacks at hotmail dot com raised my score to 810 ๐Ÿ˜ฎ

  52. Jenner Scott says:

    Hi everyone.. you donโ€™t need a loan.. contact Chris for loading of bank account which is legit.. if you are interested you can contact him anytime at (469) 415-5670.. his work is free.

  53. nneal13 says:

    So far, Krohns videos are the most accurate and concise. Thanks for the information.

  54. Marquis Walker says:

    Where are the links youโ€™re referring to ?

  55. BB Hoody says:

    I'm not digging the 3-5% down payment on a property. Your intrest rate thus your mortgage is gonna be SO high, that you'd have to charge for rent way above the standard rate for it to be worth it. Only way to profit off this is to rent to suckers who don't know any better. Becsuse those that know better are gonna look for more reasonable rentals. And you know who is offering rentals at more affordable prices? Those who bought the property with a larger down payment.

  56. Ahsaki Anokye says:

    You're so positive. Thanks!

  57. Lambda ฮ›ฮ‘ฮœฮ”ฮ‘ says:

    Kris what type of loan is the best option? I saw that you prefer 30 years fixed rate. On the other hand I believe that 20 year fixed is better option for me but I might be wrong. You have so many videos about explain everything but none explaining the most important part of real estate: the loan. No how to take loan. We can take loan. But what type of loan is the best option?

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