Hey everybody, Kris Krohn here with REITV.
And today we're going to be talking about the steps you
you need to take to get yourself approved for a loan.
Getting approved is going to require 3 things.
The first thing for you to personally get approved for a loan, you're going to need
a job.
And typically they want that job to be held for at least 2 years in the same industry.
So six months ago if you quit one job and started another one, no problem, as long it's
in the same industry.
However, if you went from warehouse worker to surgeon, little bit of a disconnect.
They may not count that.
By the way, if you're young and your in school for 4 years, and getting your job, day 1,
in the same industry, will count for 4 years of work history.
Kind of a cool little bonus piece there.
The second thing your gonna need, is developed credit.
Not just credit, or a decent enough credit score, but developed credit.
Banks want to see at least 2 or 3 trade lines.
And their going to want to see that you've been able to use them responsibly for, again,
at least 2 years.
2 years is kind of a really magic number here.
And so that might be, I have a discover card, and I have a Visa card, and an American express.
Some banks will not actually recognize Discover, the way they will mastercard and visa, so
have a couple of those on hand.
Right now, whether you have good credit or bad credit...
First of all, if you've got bad credit, go work on it.
Check the link below, reach out to our team, talk to customer support.
I've got an over 800 credit score right now, and it's not because of how well I manage
my credit, as much as it is having a team that keeps it there.
So if you've made mistakes in the past with your credit, or you have some illegitimate
things on there.
Get it handled, because your credit is an asset.
Now, whether you can qualify for a $500 card for a student, or whether you're older and
have a $30,000 line of credit.
Sometimes people will actually shut down a bunch of credit cards.
Don't do that.
Keep your credit available.
Make good, wise choices.
use them, pay them off, use them pay them off.
Okay.
Two years history with at least 2 or 3 trade lines.
The 3rd and final thing you need, is a job.
Not just having that job, but they want a history of you making a certain amount of
money.
Because they are going to look at how much you can qualify for.
And ultimately they are going to look at how much debt you have in your life, and how much
income, and they are looking for a magic ratio called the DTI.
Debt to Income ratio.
So you need a job that is making enough money against your expenses that there is a margin
for actually being able to afford a housing expense.
Now if your renting and paying $700 a month.
Then that's going to go away.
So you already know that $700 is going to get freed up.
The question is, can you free up enough for their margin?
And that's why you get pre-approved, long before you go out and actually house hunt.
So you are probably wondering, how much money can I actually get, if I'm getting pre-approved.
Well that's the point of pre approval, is there's a magic number.
What they are going to basically do, is say well, again like I shared earlier, based on
your credit, your job income, or the different factors, basically we're calculating your
DTI, your debt to income ratio... and this is what you can qualify for.
So, maybe I make $40,000 a year, and I'm able to qualify for $140,000 home.
Maybe I make $80,000 a year, but I've got a lot of expenses in my life, and so I still
only qualify for a $140,000.
Or maybe I make $30,000 a year, but I'm an excellent penny pincher, and I qualify for
a whole lot more.
So, what they're going to do, is their basically going to say, "how much debt are you managing
every month, and how much do we believe that you can really handle."
Most banks, just in general, are going to qualify you for between 40% and 50% of debt.
So If I make $4000 a month, then they believe you can handle $2000 a month of debt.
Well, think about that for a second.
If I only have $400 a month of payments, then they say I can take up to what?
$1600 more dollars in payments.
Well $1600 based upon todays interest rates, means that I could qualify for a $220,000
house.
Boom!
There's your number, you get a pre-approval letter, now you can go into the marketplace
and start making offers, with confidence.
And that my friends, is the approval loan process.
Now, by the way, I want to invite you to subscribe, see more of these videos, and if you'd like
to receive a free approval process, then go ahead and click the link below.
Have my team get in touch with you.
I've got a team that buys hundreds of properties for me on a regular basis.
And it only takes me a couple minutes a month to manage all of it.
And yet just this week I received an $80,000 check from selling one of my properties.
So if you want to access my entire team, click that link below, and let's get you started
right away.