Latest / WIXN AM 1460 - Shaw Local Radio / Talk Line: Francine Lilja, First National Bank in Amboy on home buying pre-approval

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Talk Line: Francine Lilja, First National Bank in Amboy on home buying pre-approval · WIXN AM 1460 - Shaw Local Radio

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  Speaker 1: Good morning, Sock Valley. You've joined the Waking crew here
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  Speaker 1: on FM ninety five one and AM fourteen sixty WIXN.
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  Speaker 1: It's eight thirty five on your Friday, February sixth morning,
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  Speaker 1: and so that means it's time for talk line with me.
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  Speaker 1: Today is Francine Leja, personal and residential lender at the
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  Speaker 1: First National Bank and Amboy, and she's going to be
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  Speaker 1: breaking down pre approval and sharing what every potential home
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  Speaker 1: buyer should know.
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  Speaker 2: How are you today, Francis, I'm doing very good. Thank you,
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  Speaker 2: you know, and.
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  Speaker 1: I apologize I didn't ask you before when we were
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  Speaker 1: off the AAR. Did I get your last name right?
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  Speaker 2: You were really close, Lilia, Lilia, really close.
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  Speaker 1: I think you're being nice.
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  Speaker 3: Yeah, you're really close.
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  Speaker 1: Okay, So let's just kind of start simple for people
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  Speaker 1: just starting out and there's a lot out there. What
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  Speaker 1: does pre approval actually mean in terms of purchasing a
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  Speaker 1: home and why is that so important?
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  Speaker 2: Well, it's really important because it helps when you're shopping
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  Speaker 2: for our house with a realtor. It helps show them
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  Speaker 2: that you're a very serious buyer. You've gone to a lender.
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  Speaker 2: They know that your credit is good and that you know,
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  Speaker 2: how much of a house that you can afford, because
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  Speaker 2: you know, you don't want to go out there and
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  Speaker 2: look at something that's more expensive than what you can
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  Speaker 2: afford a payment for. It's just going to make you
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  Speaker 2: be disappointed. So what we recommend people to do is
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  Speaker 2: to come in and see us and we will do
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  Speaker 2: take an application and we'll get all your income information
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  Speaker 2: and your work history or run a credit or report,
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  Speaker 2: and then we talked to you about what kind of payment.
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  Speaker 3: Do you want?
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  Speaker 2: You know, what do you think you can afford, Because
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  Speaker 2: just because we say that you can afford a two
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  Speaker 2: thousand dollars a month payment, doesn't mean you want a
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  Speaker 2: two thousand dollars a month payment, right, So we kind
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  Speaker 2: of go into it that way.
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  Speaker 4: And then you know, and some people are just like.
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  Speaker 2: Well, how much can I afford totally? And then we
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  Speaker 2: give them that and then we'll do a We give
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  Speaker 2: out a pre approval letter that states that you're pre
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  Speaker 2: approved for X amount of dollars and it's good for
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  Speaker 2: four months because our credit reports only good for four months.
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  Speaker 2: So after that we just have to review the application,
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  Speaker 2: run an update to credit report, and then we can
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  Speaker 2: reissue another approval pre approval letter because sometimes it takes
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  Speaker 2: a while to find a house. You know, it's not
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  Speaker 2: it's a lot of times it's not something that is
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  Speaker 2: a quick process.
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  Speaker 1: Given that information, it really sounds like this is what
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  Speaker 1: you should be doing before you even start looking for homes.
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  Speaker 1: Am I wrong?
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  Speaker 3: Absolutely? Absolutely?
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  Speaker 1: So how does someone start that? How do they apply?
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  Speaker 4: So you can apply?
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  Speaker 2: You can go online to our website fmbamboy dot com
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  Speaker 2: and then you can apply online for a real estate loan.
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  Speaker 2: You will get an instant approval there our You can
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  Speaker 2: call us on the phone and we can do applications
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  Speaker 2: over the phone. It takes about five ten minutes. It's
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  Speaker 2: real time consuming. We don't keep you on the phone
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  Speaker 2: while we run't credit and everything. Or you can make
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  Speaker 2: an appointment and come in and meet in person. Some
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  Speaker 2: people like that personal touch, and that's okay too. When
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  Speaker 2: you do come in, it makes things easier if you
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  Speaker 2: bring recent paste up and last year's W two. That way,
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  Speaker 2: we've got an accurate figure on your incomes so that
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  Speaker 2: we're not going off of guestimates. It'll help you to
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  Speaker 2: get a better pre approval.
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  Speaker 1: And so does this like actually give people kind of more?
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  Speaker 1: I want to say, maybe negotiating power with sellers or
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  Speaker 1: kind of you know, helps them compete in today's market.
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  Speaker 2: I would think so, yeah, because it shows they're a serious,
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  Speaker 2: serious buyer and they've got financing pretty much locked in.
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  Speaker 2: I mean, the pre approval is subject to verification of employment,
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  Speaker 2: verification that you have all your down payment, so we
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  Speaker 2: still reverify.
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  Speaker 4: Everything, but the pre approval.
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  Speaker 2: Shows the real estate agent and the seller that you
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  Speaker 2: are a serious buyer.
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  Speaker 3: You you've gone to the bank, you're looking at what
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  Speaker 3: you can do.
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  Speaker 1: You know, misinformation, there's so much information online you don't
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  Speaker 1: know what to trust, and people can have some misconceptions
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  Speaker 1: about pre approval. What are some of the things, like
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  Speaker 1: you that you hear that people think when it comes
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  Speaker 1: to this that just maybe aren't true.
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  Speaker 2: Well, I think people they they think it's a long,
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  Speaker 2: hard process, and it's really not.
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  Speaker 3: We try to keep it as simple as possible.
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  Speaker 2: I think it just depends on what kind of a
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  Speaker 2: person that you are. Some people like to like do
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  Speaker 2: it at night, so you would do the online application
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  Speaker 2: because that would go more for you. So I think
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  Speaker 2: it just, you know, it's very confusing transaction, especially if
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  Speaker 2: you've never done it.
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  Speaker 3: Before.
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  Speaker 2: I have a young couple that's purchasing a house for
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  Speaker 2: the first time, and you just kind of you just
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  Speaker 2: kind of got to walk it through them. It can
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  Speaker 2: be a very overwhelming process for the buyer. So I
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  Speaker 2: think that's the big thing is that it is. It
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  Speaker 2: can be overwhelming, but we try to walk you through
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  Speaker 2: it step by step and we just help you, help
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  Speaker 2: help make it the easiest we can.
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  Speaker 1: Absolutely Now, is getting approved the same or excuse me,
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  Speaker 1: getting pre approved the same as being fully approved for alone?
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  Speaker 1: And if not, what's what's kind of the difference is there?
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  Speaker 4: The difference would be.
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  Speaker 2: We don't verify everything on the pre approval. We don't
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  Speaker 2: go out and verify your income. We don't.
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  Speaker 3: We do run credit.
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  Speaker 2: You'll tell us what your assets are, but we don't
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  Speaker 2: verify those assets. So it is it is different.
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  Speaker 1: Is there a certain kind of range for a credit
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  Speaker 1: score that typically qualifies someone for a mortgage or is
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  Speaker 1: it just not as simple as that.
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  Speaker 3: It's not as simple as that.
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  Speaker 2: There's the programs are going more towards where they're not
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  Speaker 2: necessarily looking at credit score, looking at credit history and
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  Speaker 2: what kind of.
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  Speaker 3: History do you have?
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  Speaker 2: You want to have a couple of years history on
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  Speaker 2: at least one or two tradelines, which is a.
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  Speaker 3: Like a loan or a credit card. If you don't
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  Speaker 3: have all of that.
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  Speaker 2: The other thing we can do is what's called non
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  Speaker 2: traditional credit, or we can look at if you've rented
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  Speaker 2: for at least twelve months, we can get verification of rent.
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  Speaker 3: You can show us that.
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  Speaker 2: You've paid your cell phone bill monthly, but you need
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  Speaker 2: you would want to have at least one tradeline for
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  Speaker 2: twelve months to get make it easier.
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  Speaker 1: Now, say someone you know you have that non traditional option,
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  Speaker 1: but say somebody's you know they've got the patients and
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  Speaker 1: they say, hey, I kind of want to build this up.
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  Speaker 1: You know, do it the right way. Have my credit
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  Speaker 1: score right, have my credit history right about typically how
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  Speaker 1: long would it take to do that, and what are
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  Speaker 1: some of the things they could start to do to
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  Speaker 1: build that for themselves.
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  Speaker 2: What you'd want to do, which is like what I
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  Speaker 2: recommended to my kids when they were growing up, is
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  Speaker 2: you need to you need to get a loan, You
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  Speaker 2: need to get established with a bank. Go out there
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  Speaker 2: and just we have starter loans that we do for
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  Speaker 2: people where you can borrow like one thousand dollars and
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  Speaker 2: we put the money into a savings account and we
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  Speaker 2: use that as collateral. That and then you make your
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  Speaker 2: monthly payments and that will help build your credit up.
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  Speaker 2: You just got to show someone, show a bank that
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  Speaker 2: you can make your monthly payments on time, and they
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  Speaker 2: like to see it for about twelve to twenty.
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  Speaker 3: Four months, so it takes time to get your credit
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  Speaker 3: built up.
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  Speaker 2: The other thing would be to get a credit card,
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  Speaker 2: but you know you have to be careful with them.
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  Speaker 2: You want to make sure you pay it off monthly
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  Speaker 2: so you don't get yourself built up into extra debt.
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  Speaker 1: Yeah. No, the good advice it's a tool or it's
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  Speaker 1: not a toy. It's a cru or a tool, and
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  Speaker 1: that one for buying toys, you can, but probably not
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  Speaker 1: the best option if you're first trying to build things correct. Well,
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  Speaker 1: what's a mistake you commonly see first time? You know,
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  Speaker 1: home buyers make.
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  Speaker 2: I don't know that there really is a mistake. You know,
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  Speaker 2: everybody has their own way of doing things, so I
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  Speaker 2: don't think there really is a miss is a mistake
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  Speaker 2: on it?
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  Speaker 1: Have has there ever been a situation where someone lost
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  Speaker 1: a house they were in the process of trying to
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  Speaker 1: get because they weren't pre approved before they went into
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  Speaker 1: the process.
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  Speaker 2: Oh, I'm sure there is, especially in the market we're
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  Speaker 2: not in as much of a bidding war market as
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  Speaker 2: we were we were in a really big bidding war market,
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  Speaker 2: and if you didn't have your pre approval in there,
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  Speaker 2: someone else could come in and slip you out.
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  Speaker 1: And what are some of the advantages to working with
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  Speaker 1: a local bank like yours instead of like a national lender.
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  Speaker 2: I feel the local community bank were more personable. You're
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  Speaker 2: going to get an You're going to get a person
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  Speaker 2: to talk to, and we are going to walk you
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  Speaker 2: through from application through closing, and then we're also going
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  Speaker 2: to be there after the loan closes because we service
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  Speaker 2: our loans.
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  Speaker 4: So if you have questions or problems.
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  Speaker 2: You can call the lender and talk to them and
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  Speaker 2: ask them, you know, to help you figure out what's
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  Speaker 2: going on, or if you have questions, and it is
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  Speaker 2: just I just think a community bank is the way
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  Speaker 2: to go. It's just a very good personal touch.
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  Speaker 3: I think that because I've.
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  Speaker 2: Been there for thirty seven years and I just feel
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  Speaker 2: like the community bank is just there to help to
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  Speaker 2: help the community.
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  Speaker 1: Absolutely, somebody who's got that kind of experience, knows the
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  Speaker 1: local scene and the area can really point you in
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  Speaker 1: the right direction. If someone's listening right now and they're
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  Speaker 1: thinking about buying a home in the next year, what's
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  Speaker 1: the first step you think they should take, or maybe
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  Speaker 1: the most important piece of advice you want to leave
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  Speaker 1: them with.
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  Speaker 2: Is can talk to us, you know, and tell us
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  Speaker 2: that you're looking to get pre approved and we can
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  Speaker 2: talk about the different options.
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  Speaker 3: We have four.
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  Speaker 2: Consumer loan officers that do really consumer real estate loans
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  Speaker 2: and at different four locations. So Elsa and Franimy are
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  Speaker 2: in the Amboy main office, and then Nannette is at
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  Speaker 2: the Dixon North office in Amboy, and Marion is at
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  Speaker 2: the Franklin Grove office, and Sage is at the Memorro
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  Speaker 2: Center office. And if you call our regular eight one five,
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  Speaker 2: eight five seven three six two five number, you just
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  Speaker 2: asked to speak to a loan officer and they will
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  Speaker 2: get you one that's available. Just because you're calling from
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  Speaker 2: Dixon doesn't mean Sage and Momro Center can't help you.
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  Speaker 2: We work together as a team and we help each
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  Speaker 2: other out.
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  Speaker 1: There you go, if you're considering purchasing home, it's as
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  Speaker 1: simple to start by making a phone call. That could
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  Speaker 1: save you a lot of hassle, a lot of headache,
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  Speaker 1: and have you better prepared to purchase that home. Francine,
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  Speaker 1: was there anything else you want to share this morning?
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  Speaker 2: I can't think of anything. Just give us a call
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  Speaker 2: if you're you know, even pre approval on a home.
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  Speaker 2: But even if you're car shopping you I'll call in
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  Speaker 2: and get pre approved before you go to that car
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  Speaker 2: dealer and we can see what we can approve you
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  Speaker 2: for for a carloan.
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  Speaker 1: Well, there you go. Take the proper first step, folks.
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  Speaker 1: The people at the First National Bank and Amboy are
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  Speaker 1: going to help you start out on the right foot
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  Speaker 1: and make sure you've got all of your your t's crossed,
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  Speaker 1: in your eyes dotted before somebody trips you up because
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  Speaker 1: he didn't do it. Brandie, thank you so much for
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  Speaker 1: coming in.