Pre-Approved Mortgages Vs. Fully Underwritten Approved Mortgages.
When looking to buy a home, one of the first things you are asked by your Realtor is "Have you been Pre-Approved yet" When the question you should be asking your Mortgage lender is am I fully approved?
What is a Pre-Approval? Just as the name simple states, Its not an approval. Pre, means "before" "in front of,” “prior to, "in advance of" according to freedictionary.com - so why would you settle for this? I've been in the mortgage industry since 2000, and let me tell you what really happens. Mr. and or Mrs Home buyer calls up the mortgage guy or gal that they have used in the past, or maybe a friend referred them to, or maybe they are in there local bank branch. The conversation goes something like this
Home Buyer "Hi, I am looking to buy a home and I know I need to be pre-approved, can you help me please?" Mortgage Person "I'd Love to, I need to pull your credit, you will need to fill out this application, is that ok? Home Buyer "Sounds great, how long will this take?" Mortgage Person "Just about 15 minutes" Home Buyer "Perfect" Mortgage Person takes the all the information required on the application and pulls a credit report Mortgage Person "Mr. and or Mrs Home Buyers congratulations! I have pulled your credit and you are pre-approved to buy a home! Go ahead and start looking and let me know when your under contract and I will submit your file to an underwriter, I have emailed you a letter for you to give to your Realtor so you can start looking for home." Realty is this mortgage has just been "Pre-Approved" and the pre-approval ins't really worth the digital paper is was written on. Don't get me wrong, there are some very good mortgage people out there that know what underwriters are going to want and if a buyer chances are good at being approved. I would say I am even one of those very good Mortgage guys that should know.... but we're not underwriters. Underwriters approve loans, mortgage originators pre approve them. Simple as that.
So why doesn't your mortgage person send it to an underwriter? Sounds simple enough, right? Because that costs money, the bank has to pay the underwriter, and if mortgage originators sent everything to the underwriter, the banks would have to employee a lot more underwriters.... and that is not going to happen. Don't believe me? Ask your mortgage person, say some thing like "Hey thanks for pre approving me, but would you send my file to an underwriter BEFORE I start looking for homes so I am 100% sure I will get my loan and there will be no surprises?" My guess will be 90% of the mortgage originators out there you tell you "I'm sorry, but the underwriter will only look at your file once you are under contract." There are Mortgage Lenders that will Fully underwrite your mortgage before you even write a contract. Yes it's true. You can have more then a pre approval. When you apply simply ask, if your mortgage person says you have to wait, then keep on shopping. There is much more to a mortgage then just the rate... not that rate doesn't matter, it does. But so does closing on your loan, on time with no or little stress.
At Ion Real Estate & Mortgage we offer our buyers fully underwritten loans, we want our buyers to know exactly what is going to be needed, we don't just settle on looking at your credit report. We also offer amazing rates to go with our amazing service. Give us a call or apply online at www.BestMortgagesColorado.com.
We submit your file, you get a fully underwritten and approved mortgage, and sellers know they have a buyer that will actually close with no issues. Giving you the advantage.... and in a fast moving market, we all want the advantage.
Jim Cavoto / Owner & Managing Broker Ion Real Estate & Mortgage
Author:Jim Cavoto Managing Broker Phone: 720-309-3014 Dated: January 3rd 2014 Views: 8,527 About Jim: Jim Cavoto has been serving Colorado Real Estate market since 2000. Jim carries both Real Estate Em...
Ion Real Estate is a hand-picked team of highly respectable experienced Realtors coming together to work with you. Please contact us anytime with any questions. We look forward to serving your Colorado real estate needs. Our experience and dedicated professionalism ensures our clients have exceptional representation every step of the way. At a time where bigger isn't always better, Ion Real Estate has chosen to remain a smaller, highly focused team in order to provide a level of personal service, attention and consideration to our clients that you simply won't find elsewhere. Our decades of experience in the unique world of Denver real estate positions us advantageously to handle all of your real estate needs
It's Spring and a great time of year to sell your home! Here are five&
"My experience with Jim and Ion real estate has amazing. Jim is wonderful to work with. He listened to my challenges and offered suggestion on how to bring my score up to the 640 I would need for a loan to do repairs on the house I am interested in purchasing.
I have been working very hard on making a change in my finances so I can purchase a home in Bailey and it is a pleasure to feel hopeful that this will happen.
I am so grateful to Jim for listening and helping me understand the process.