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When a Pre Approval is Not Worth the Paper it’s Written on…and No Better If From a Direct Lender

Written by Clay on . Posted in Homebuyers

It’s a very competitive real estate market and legitimately sellers are choosing which offer to accept based on the strength of the buyer.  Often electing to take a substantial discount in price for a cash offer and a quick closing sellers may unnecessarily leave money on the table. Well-qualified borrowers can miss out on their dream home by not being prepared. The key is getting a solid pre approval. For many years at Signet Mortgage, we have only issued pre approval letters when we have verified a clients income, asset and credit affirmation, as well as obtain automated underwriting from either Fannie Mae or Freddie Mac. In this market that may not be good enough. Not all lenders will allow the processing of a loan without identifying a specific property, this is understandable because not all transactions go through and it is an investment on their part to fully underwrite the loan that may not go through. Signet, operating as a mortgage broker, has access to 10 lenders that will allow a full underwrite of a “to-be-determined” property. We have a full range of investor options as well as competitive lender choices. This approach is an upfront investment by the buyer that can read significant rewards. With a full underwrite, the pre approval letter now would only have contingency on the identification of a property and no loan contingency with respect to the client putting their offer on par with a cash offer. preapproval The idea that a pre approval from a direct lender is any stronger is hogwash. The quality of the pre approval letter is based on the work done on the loan file to support the pre approval and the experience and integrity of the loan officer – period. Again, as a mortgage broker, Signet has access to just under 20 lenders which assures clients that I can find a successful solution to a buyers unique circumstances. Make sure to leave the time to get a full pre approval before making an offer on your new home! That small investment will help your offer to be successful.  Did you know three out of four real estate agents aren’t true professionals? Many agents have backgrounds in other professions and have just recently transitioned into real estate. The problem with this is that a real estate agent relies on his or her experience to properly evaluate, strategically price, market and advertise your home or a home you are interested in. The negotiating skills necessary to correctly represent you throughout the buying or selling process can only be learnt by bringing parties together and closing deals in the Brantford real estate market. As a CPA and Real real estate agent, I approach real estate financing with the care and professionalism that you deserve for one of the largest transactions you will do in a lifetime. If this sounds like someone you would like to work with to get solidly pre approved for your next home please give me a call. My team and I will do the work to make sure that your offer is the one that the seller loves! 

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