Advantages Of Getting Full Credit Approval
What is the advantage of getting full credit approval? First let’s break down the types of lender approvals so we know where we stand. Remember first there is a qualification or even referred to as pre-qualification. In this case a buyer is pre-qualified for a mortgage by having given their information and determined to be able to qualify for a mortgage. However please note there is no verification if the information given was actually true, so this type holds very little weight and I do not recommend it.
Next is the pre-approval or approval of a mortgage, in this case the same happens but there is verification of the information provided. So the income is verified with pay check stubs, tax returns and even banks statements, so this is the preferred way to be approved for a loan.
Full credit approval however is the ultimate form and has really become more popular as the market has become more competitive. In this case the approval goes as far as fully approving the buyer by the lender’s full underwriting standards. In this case the buyer is not only review and verified by a loan officer but also the lender’s underwriter, which is the ultimate decision maker.
Keep in mind this takes up time, the lender’s resources and fills the lender’s pipeline with other buyers who may already have a house under contract. This is something big the lender’s are doing and it s an enormous help to a buyer when it comes to competing for a home in a multiple offer situation. The only thing missing from the lender actually giving you a loan is the contract on a home.
So how is this stronger? You are fully approved, meaning you almost hold as much weight as a cash buyer!!! You are guaranteed as far as your credit approval is concerned. That is big, and getting this done is recognized when it comes to making your offer because now the seller doesn’t have to worry if you will not qualify down the road. The reality is you are ready and approved so your offer holds weight and they are more likely to take your offer over others just for that reason.
Getting fully credit approved takes time and the lender’s resources, so when you have a lender willing to do this realize how important it is. This means that not only are they serious but they know what it takes to help you win those multiple offer situations. If you have the opportunity this is the best route to take, it will put you ahead of the rest of the buyers and get you in a home that much fast. When I tell people how to win in multiple offer situations this is my number one suggestion!
With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate. I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.
Have questions about this or other topics, don not hesitate to contact me.
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Luis Cuevas, Realtor®
RE/MAX Cross Country
1990 Justin Road
Highland Village, Texas 75077
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