Why Do I Want To Get Pre-Approved
If you are looking to purchase a home in today’s market, a loan pre-approval is a must have. Most listing agents will not consider a purchase offer without a pre-approval letter accompanying it. And many buyer’s agents won’t start showing you properties until you can show them you are pre-approved as well.
Obtaining a Pre−approval letter is an important step in the home buying process. To start the pre-approval process you will complete a loan application. I give my clients the option to have a PDF application emailed to them, use a secure online application (See Below), or complete the application over the phone.
This information will help your mortgage lender determine which loan program will be best suited for your San Diego Home Purchase.
In addition, you will supply your San Diego Mortgage Broker, Banker, or Lender a copy of your pay stubs and bank statements. If you are self-employed or own other rental properties, you will also need to supply your federal tax returns. Your lender will also pull a credit report.
Once all this information is collected an analysis will be done to accurately calculate your debt to income ratio and loan to value.
Your completed file will be processed through an automated underwriting system which confirms that you are pre-approved based on the guidelines for the loan program you and your mortgage lender choose. At this point, your mortgage lender can provide a written pre-approval letter for you or your agent to use in support of your purchase offer.
With a pre−approval in hand, you now have more power to negotiate. The seller and listing agent will take your offer much more seriously knowing you are already pre-approved by a lender. Being pre−approved can also save up to a week in the loan process while in escrow versus having to start from scratch once your purchase offer is accepted.
But, if you want to even be in a better position…. Keep reading!
Ready to Move Pre-Approval Process
Through my team, The Mortgage Planners at RWM Home Loans, I offer a special program called The Ready to Move Pre-Approval Process. Although getting a traditional pre-approval letter is a great way to start the home buying process, it does not differentiate you from most buyers in the market.
The Ready to Move Pre-Approval Process will! This program is designed to allow you, as the buyer, to become approved by an actual underwriter prior to ever putting in an offer on a home. There is no up-front cost or requirement that you use me to obtain your home loan when the time comes (Your pre-approval would not be good with other lenders).
This is not offered by most San Diego mortgage lenders!
With a traditional loan pre-approval, if your information that is reviewed by the loan officer looks to meet the home loan program guidelines, you are considered pre-approved. Your file is never reviewed by an underwriter to confirm that you are approved for a mortgage.
Once you have an accepted purchase offer, your home loan file would then be submitted to an underwriter and if your loan officer did a good job initially, the underwriter will provide a loan approval. If the underwriter does not agree with the loan officer, or finds something else in the file that a loan officer would not look for, your home loan may not be approved.
At that point, you are in escrow on a property, have spent money on inspections, and are left without an approved home loan.
Even after your loan is initially approved by the underwriter, you will usually have a number of conditions that will have to be submitted to get the file fully approved. These conditions could change the outcome of the approval or just take a long time to gather. These unknowns can cause anxiety, stress, and in some cases, fear that you will not secure the home loan or close on time.
My Ready to Move Pre-Approval Process removes that anxiety, stress, and fear of the unknown so that once you are in contract, you will experience an ease of mind during the escrow period, relax, and think about how great it will be to move into your home in 17 days or less.
This process is designed so that a full loan file, including income, assets, credit report, letters of explanation, and verifications of employment are sent to an underwriter prior to ever submitting any offers. The underwriter will review and grant a full home loan approval with the only conditions being the home appraisal, review of the purchase contract, and the termite clearance if a termite report is required.
This allows you as the buyer to have the confidence to know that you are going to be able to close your home loan without anxiety or stress and be able to make your purchase offer the strongest possible.
The Ready to Move Pre-Approval Process allows you to submit an offer with a home loan that is more like an all cash offer. This is due to the fact that your loan is already credit approved, you can close in 17 days or less, and you can have a short or no loan contingency period.
Can Anyone Take Advantage of The Ready To Move Pre-Approval Process?
This will cover most buyers, but there will be times where a buyer does not fit into one of these programs or may have a very unique situation where we would have to broker your file to a mortgage lender directly for underwriting. If that is the case, we would have to offer a traditional pre-approval letter.
How do I Start the Process?
If you would like to take advantage of this great program, it is easy to get started. Simply click on the Get Started button below and create a secure account to complete the application or give me a call at 858-829-7186.
The benefits of this program are huge and it is definitely worth planning ahead to get this process done prior to searching for homes. With a little initial planning, your offer will be much stronger, you will have less stress, and a better escrow experience. Your Realtor will also be happy because it will make their job much easier.