The problem with Pre-quals and pre-approvals (plus our solution)
The problem with Pre-Quals and Pre-Approvals (plus our solution)
Being a Real Estate Agent, I am sure you have experienced a case where one of your buyers had a problem with their home loan, but it didn’t come up until late in the Escrow period or Purchase contract period.
What could be worse? Especially when you find out that it was something avoidable. This happens and there is a solution. There is a way to avoid this. The first step, which I am sure you are well aware of, is to work with a quality loan officer and a quality lender that is thorough up front and pays attention to the details.
We have a solution to you can avoid that pain, dealing with a family that lost their home they wanted to purchase, and wrestling to get the earnest money back from the seller. We are going to show you how you can avoid that in the first place and have a stress free, smooth closing that moves quicker than the pre-qual and pre-approved loan.
First, we will explain the difference between a pre-qual and a pre-approval. Then we will show you what we have been using for years to make our purchase transactions stress free, smooth and frankly makes our borrowers raving fans of our service. The best part is that it reduces all that stress making for a smooth transaction, without hassle. Even kind of boring, but we believe that boring loans are the best kind, especially during a home purchase.
Pre-quals. That means the borrower and I speak on the phone or in person and we talk about their income, credit, assets, history, etc. (no documentation shared or reviewed). The Loan Officer says: “it sounds like you are good to go”. We don’t believe that does or should give the listing agent and seller any confidence in the quality of that purchase offer. And for good reason, it’s pretty much worthless as there are so many facts to validate and process, which is what Underwriting does. It is important to do that early so that you avoid surprises as much as possible while trying to buy your next home.
Pre-approvals. This is where you apply online or in person, we run your credit, review your income and asset documentation, we look for any red flags. We look at your debt ratios, credit character, credit quality, and give you a thorough review. But that is a Loan Officer and maybe a Loan Processor doing these tasks. We have been doing this for many years, both my processor and I have been doing loans for over 20 years. That is over 40 years of combined lending experience. Our pre-approvals are very solid. But there is still something even better.
The solution. We have discussed pre-approvals and pre-quals. But what do we have that will take care of you and your buyers and help avoid these problems with pre-quals and pre-approvals? Because things pop up during escrows. Big banks use pre-quals. Why? Because a pre-qual requires very little labor and banks like to save money. We are willing to put our money up front on Underwriter, Loan Processor and Loan Officer labor to get your buyer Underwritten upfront, even before the buyer finds a property. We can underwrite 3 of the 5 areas of Loan Approval upfront – Income, Credit, and Assets. This process also allows us to identify and handle and curve balls upfront. Before you put in offers. Then we can issue a full Approval letter.
We call this the Fast Forward Approval. The letter will state that the borrower has been reviewed by an Underwriter and the buyer is Underwriting Approved. All we need to do is add the property and title work. This also allows us to do a quicker Escrow period or Purchase contract period. The biggest delays at this point are Title work and Appraisal, but we can overcome those by working together.
Work with our team to help your clients have a stress free buying experience with the Fast Forward Approval.