This could make the difference in getting your offer accepted.
The Preferred Buyer conditional loan approval is the highest level of loan approval a home buyer can receive. Most lenders do not offer this service or level of approval to home buyers (but we do). Home buyers working with a regular or normal lender will submit offers on homes using a pre-qualification or pre-approval letter. Don’t be normal or regular…..that could cost you a lot of time, money, and emotional distress.
Make sure your loan pre-approval is actually worth something
Most real estate agents would agree that a pre-qualification or pre-approval letter isn’t worth the paper it’s written on. Why? Because the number of buyers who fall out of escrow due to their loan not getting fully approved is alarmingly high! Industry wide, about 41% of all people who apply for a loan are later denied at some stage of the process and about 25% of these denials are wrongly denied! Wrongly denied means that another lender (like me) could have approved the loan.
A regular pre-qualification or pre-approval letter from a lender is just an opinion from the Loan Officer (LO). It is not a commitment to lend. Many LO’s just don’t have the experience to determine up front if your loan will approve….or they just don’t pay attention to the details……or they don’t know the guidelines well enough to know what will approve and what won’t. I know some who admittingly take the shotgun approach…they nonchalantly issue a pre-approval and throw as many loan applicants (like you) up against a wall to see who sticks….like a piece of spaghetti…..often without regard that you may lose your $1,000 to $5,000 earnest money deposit while in escrow if you get denied.
A Preferred Buyer conditional loan approval is achieved by running **DU/LP/AUS and then submitting your entire loan application to underwriting prior to being in contract or even knowing the home address. It’s a review of your credit and determination of your qualifying income by the actual decision maker….the underwriter (loan officers don’t make those decisions…..if they did, everyone would be approved).
Benefits to Achieving a Preferred Buyer Loan Approval:
- It eliminates doubt that you, the buyer, are at risk of not qualifying. This brings peace of mind to you and the seller
- Helps your loan close faster – often in 15-20 days
- Sellers prefer to work with buyers who they know can close their loan quickly (or early) and are not at risk of falling out of escrow due to their ability to qualify for the loan.
If you offer $200,000 for a home with a Preferred Buyer loan commitment from an actual underwriter, and the other buyers offer the same amount (or even more) with a prequal/pre-approval letter, who’s offer will they most likely accept? It’s a no brainer…..slam dunk.
The Preferred Buyer loan approval makes life easier for you……call me (951) 215-6119 to start the approval process or go here to complete this secure loan application
P.S. – Not all loan programs or buyers are eligible for a Preferred Buyer Loan Approval……you need to call and find out.
P.S.S – A Preferred Buyer conditional loan approval is subject to final review and acceptable appraisal, title report, fully executed purchase contract, and satisfaction of any additional conditions.
** DU = Desktop Underwriter. LP = Loan Prospector. AUS = Automated Underwriting System. All three automated approvals are basically just software programs that read a borrowers credit report and income to give a preliminary approval. They are only as good or valid as the info that is input. They can sometimes give a false approval….so a DU/LP approval is almost worth the paper it’s written on.