In today’s competitive home-buying market, it’s not uncommon for sellers to receive multiple offers on their home soon after listed for sale. How do sellers decide between those offers? Of course, the price is the primary driver but if the price difference between two or more offers is relatively close, often the sellers will look to the financial strength of the buyer to determine who to sell their home to. In most cases, buyer’s agents will submit a pre-qualification letter along with the offer. Savvy Realtors, however, know if they submit a pre-approval letter with the offer, the likelihood of a smooth on-time closing is greatly increased, making the offer more appealing to the seller.
What’s the difference between Pre-Qualification and Pre-Approval? When a buyer has been pre-qualified, the lender has taken a loan application and reviewed credit, but in most cases has not received all of the income and asset documents for review. In this scenario, pre-qualification strictly relies on what the buyer reveals in terms of income and funds available at the contract closing date. A pre-approval means the buyer has submitted an application, credit has been checked, and they have provided income and asset documentation that has been reviewed by the Loan Officer, Loan Processor, and Underwriter. In addition, it has already been determined that all paperwork submitted complies with the underwriting requirements for the particular loan program that was determined to be the buyer’s best option.
Taking our clients toward our signature pre-Approval program, known as EXPRESS PASS, we’re able to move quickly toward getting our clients pre-approved. By moving our clients through this program before they have a home under contract, we’re able to establish a contract negotiating advantage for our client and their Realtor. To a seller the pre-approval offer is as close to a cash offer as you can get, enabling the borrower to close quickly.
With Express Pass, the buyer receives the exact same level of service, but at an accelerated pace. Each of our clients that goes through the Express Pass program still receives our full in-depth consultation to ensure we’re structuring the best loan program to meet their financial goals.
If you’d like to learn more about our Express Pass program, please contact us at 512-672-4729 x303.