Don’t Let This Happen To You (Or Anyone You Know)
I just got an email from a nice lady (Sandy) who is trying to assist her son and daughter in law in buying a home.
She had some questions about their specific situation and asked if I thought I could help.
Part of her email made me want to pull my hair out so I thought I would share the part that bothered me.
I don’t want the following story to happen to you or anyone you know.
(Please share this if you know someone thinking about getting a home loan or buying a home)
I’ve heard variations of this story way too many times over the years to not FINALLY share it.
Sandy’s son and daughter in law applied for a home loan recently.
They got a letter from their new lender that said they were approved.
Most people would take that at face value…
“I got a letter that said I’m approved, so I’m approved right?”
What happened to them next is a crying shame.
And it wasn’t their fault.
Here’s what happened…
Based on the “approval” they received they went looking for homes.
They found a home they fell in love with and of course got emotionally attached to this new home (and who wouldn’t)
Figuring they’d found their dream home, they made an offer to purchase the home.
Their offer to purchase was accepted by the seller.
The seller then took the home off the market thinking they had pre-approved buyers and a purchase agreement since the new buyers did have a “preapproval letter”
Son and daughter in law did there due diligence and paid for and completed a home inspection (about $400)
After getting what they assumed was a preapproval…a few days later the lender that supposedly approved them said they were being denied the loan because the way the daughter in law was paid at her job and the length of time on her job.
A ton of wasted time, an emotional rollercoaster and money down the tubes
A very sad story indeed…
First, let me say that there are many great mortgage lenders out there today both online and off.
But as a consumer I want you to protect yourself and get the right kind of approval.
There are three kinds of “approvals” in my mind.
The first is the worst “approval” to have.
This kind of approval involves some lender gathering some verbal info about income, credit score and debt and issuing an approval letter or verbalizing that you are loan approved based on that fleeting glance. BAD
The second kind of “approval” is much better but could be improved upon.
This is where the lender actually gathers some paperwork on income, job history and obtains a credit report.
With this info, the lender can run the file through what is typically known as a desktop underwriter.
This is a computerized system that analyzes the input and gives a loan approval based on what is input to the desktop underwriting system.
This is ok and can be just fine for many circumstances such as those that have been w-2 employees at the same job for more than 2 years, have solid credit scores, good debt to income ratios, good down payment, consistent work hours, etc.
What I really prefer is to gather the proper information from the borrowers and submit it to a “live underwriter” for review and approval.
This is a far superior approval in many ways…
We will know beyond a shadow of a doubt that you actually have been approved.
We will know what may be needed in the form of additional paperwork upfront.
You will not experience a denial after you have made an offer on a house.
The process from the time you make an offer to when you can move in will be shortened.
No unpleasant surprises!
It takes a little more upfront time (about 2-3 days) more for this type of approval…
But you will not experience the emotional roller coaster ( and wasted money) that these nice people had to endure.
Often times having this live underwriter approval can help you win the deal if you are in competition with other buyers as your lender should call the sellers listing agent and explain how strong of an approval you have.
Getting a home loan is not difficult.
You just need to provide the requested documentation.
This documentation can usually be scanned and emailed to your lender, or most lenders are happy to come pick up the paperwork from you (if they are local).
When it comes time to get your loan approved, I would highly encourage you to tell your lender you want your loan approved by a “Live Underwriter”
This is especially important if you have a slightly unique situation such as being self-employed, job changes, less than 2 years on the job, inconsistent hours, commission, bonus, or overtime income, past credit issues Etc.
Asking for the “Live Underwriter” approval is just a superior way to get a home loan.
You will be happy you did
RELATED ARTICLE>>> Top Tips on How and Where To Start The Home Buying Process Without Stress
P.S. The actual “Live Underwriter” approval only takes 2-3 days from when we have collected your documentation.
I would also encourage you to call your preferred lender at least 2-6 months before you want to buy as oftentimes your lender can offer helpful tips to help you get a better loan, a lower rate and a better credit score if needed.
Whenever you’re ready here are 3 ways I can help you now…
#1)-Go here for an easy way to find out how much you can be bank approved for, your price range of home and what your real monthly payment will look like…
#3)- I am here for you…Reach out to me with ANY questions and /or for personalized help.
On Your Team,
Kurt Nilsen-Your Local Mortgage Advisor
Serving Oregonians Since 2002
Sunrise Mortgage Group-Oregon City, OR.