Certified HomeBuyer is the strongest approval in the industry.
The significant difference between this and a pre-approval is the borrower’s income, assets and credit are verified upfront. Your new mortgage is guaranteed.
In today’s lending environment, getting pre-approved is not enough. Before you even get in your agent’s car you should get a Certified HomeBuyer designation offered only by The Family Mortgage Team at Leader One Financial. Note the Certified HomeBuyer difference:
There are three distinct levels of qualification that could be provided by you by a mortgage lender
A pre-qualification letter is not worth the paper it is written on. This would be where the mortgage lender gives its opinion on how much you can borrow based on the information you have provided. It is an informal analysis of their income, assets and debts. Credit may or may not be pulled. There is no actual verification of the information provided.
This is a much stronger endorsement of the prospects ability to obtain financing. It is typically completed in the following manner:
- The prospect completes a loan application
- Credit is pulled and verified with the borrower
- The file is then uploaded electronically through an automated approval system which renders an instant approval. These systems are offered by the quasi governmental agencies Fannie Mae or Freddie Mac or a number of the larger national lenders have their own proprietary systems.
This is the strongest approval in the industry. The difference between this and a pre-approval is that the borrowers income, assets and debts are verified. The file is pre-underwritten upfront before you even have a contract. The following items will be validated:
- Satisfactory credit report obtained and approved
- Sufficient income documented to qualify
- All funds for closing verified.
- The present home does/does not need to be sold
- The present home does/does not need to be leased
- No other known credit issues exist to prevent closing
There are significant advantages to being a Certified HomeBuyer
- We will provide you with a “rock solid” approval letter, strengthening the purchase offer. You can tell the listing agent that your buyer has been pre-underwritten and can close in 15 days. That is negotiating from a position of strength.
- You will know for sure what you can afford, what the payment will be and how much cash will be necessary at closing, right up front.
- You will be in a position to get a better interest rate because we can close on the loan within a 15 day period. The lenders provide better pricing for shorter lock-in periods.
- Much less stress during the contract period. You have done all the heavy lifting for the mortgage up front which makes for a happy ending!
- If you are short on cash or struggling to get to a certain down payment threshold, we may be able to suggest some creative ways to get to the goal line, assuming we have some lead time.
- If there are credit score issues, we are experts in ways to improve your scores. This can make the difference between qualifying and not qualifying or taking a higher rate. If we have some time, simple strategies can make a big difference.
- You will not be wasting your time looking for a house you can’t qualify for. Times have changed and even if you are strong financially, it pays to know everything is OK on the front end.
These are just a very few of the many potential challenges that may arise if not understood up front. If you become a certified home buyer you and the seller can rest assured you’re capable of closing on the loan quickly and efficiently.