Here’s how becoming fully underwritten can help you win a home.
It’s no secret that this is a tough market for buyers. If you aren’t careful, it’s easy to make a mistake and turn a difficult situation into an impossible one. That’s why I want to discuss how you can avoid a common home-buying mistake by explaining the difference between becoming pre-qualified, pre-approved, and fully underwritten.
To get pre-qualified, all you have to do is call your lender and send a few emails. Essentially, they’re taking your word that your financial situation is good. Pre-qualifications are very easy to receive, but they also aren’t worth much. If you show a seller that you’re pre-qualified, they probably won’t think much of it.
“Becoming fully underwritten will give you an advantage over the competition. ”
On the other hand, a pre-approval is more involved. Your lender will ask for tax returns, verify your income, check your credit, and get a full picture of your finances. At the end of the process, they’ll be able to verify if you will be approved for your loan. Sellers will feel much more secure accepting offers from you if you’re pre-approved.
So the decision is easy; you should get pre-approved, right? Actually, there’s a third option that almost no one is using: becoming fully underwritten. You’ll go through the entire underwriting process so that your lender only has to plug in the appraisal and the contract to approve your loan. Often, you can close very quickly using this method, and it will give you a leg up over other buyers.
If you have questions about these three options or anything else, please call or email me. I am always willing to help!
