A pre-qualification demonstrates your purchasing power to custom home builders and allows you to begin choosing the custom designs for your new home!
You’ll begin the pre-qualification process with a phone consultation with a loan officer, who will act as your personal mortgage expert to address any questions you may have about the construction loan process. Once you’ve discussed your financing goals and had all your questions answered, you’ll complete the online mortgage application. Within two business days, you’ll receive your pre-qualification letter along with an overview of the specifics of your loan. With a reliable pre-qualification letter in hand, you can now shop with confidence. Let’s dive into the details of the pre-qualification process, step by step.
Step 1: The Phone Consultation
The pre-qualification process is simple and begins with an over-the-phone consultation with a Schumacher Mortgage loan officer. During this call, your loan officer will discuss your construction financing goals with you, review your construction loan options, go over the application process and required documents, and address any questions you may have.
Step 2: The Online Application
Next, you’ll complete the online mortgage application and upload the required documents, which your loan officer will promptly review. They’ll use the information provided to determine if you meet the minimum guidelines for your construction loan program based on the following factors:
- credit score
- down payment amount
- debt-to-income ratio (how much you make vs. how much debt you have)
- likely stability and continuance of income
At this stage in the process, many lenders will cut corners, focusing less on accuracy to try to get the pre-qualification you’re looking for out to you quickly. However, an unreliable pre-qualification is no pre-qualification at all, and can end up being rescinded down the road or getting you stuck with a down payment or monthly payment outside of your budget. At Schumacher Mortgage, it’s important to us that you can shop with confidence. Our focus is on ensuring we provide an accurate and reliable pre-qualification because we respect you and your time far too much to supply a shaky pre-qualification letter.
Step 3: The Pre-Qualification Letter is Issued
Once your application is submitted, the information will be reviewed by your loan officer and your pre-qualification letter will be issued within two business days. Along with the letter, which states your qualification for your loan program and purchasing power, you can also expect to receive a breakdown of your:
- down payment
- closing costs
- cash to close
- monthly payment
- type of loan and how it works
Schumacher Mortgage provides this information with your pre-qualification letter because we know that you can’t build your future on an incompatible loan. Many lenders will provide a pre-qualification without analyzing if the loan fits your overall financial goals, but we’re mortgage educators and will work with you to find the loan program that best fits your needs while breaking down exactly what kind of financial commitments you can expect if you decide to move forward.
While going through the pre-qualification process doesn’t guarantee that you will be supplied with a pre-qualification letter, if you’re having trouble getting pre-qualified today, there are steps you can take to improve your chances of qualifying later.
Once pre-qualified with Schumacher Mortgage, you’ll move on to the next and most exciting time in the custom home building process – choosing the designs for your new home! When you’re ready to begin the pre-qualification process, get started here to schedule a phone consultation with one of our Schumacher Mortgage loan officers.