mortgage lending

Proactive TBD underwriter approval

Homebuyers Need to Be Proactive in Todays’ Market

Horror story or victory dance? You control your narrative.

As a first-time home buyer1, the home-buying process can be overwhelming, stressful, and confusing, especially when it comes to the mortgage lending process. There are many horror stories of people who had put an offer on their “Dream Home” without fully understanding the mortgage lending process and then having to race through it, only to learn that their loan was denied, and they lost the home. Racing through this process causes stress, anxiety, uncertainty, and fear. Doubt creeps in and you begin to second-guess yourself with questions like:

  • Will the loan be approved? What if it’s not and we lose the house?
  • What if this is the wrong house?
  • What if we picked the wrong loan officer?
  • What if there are extra hidden costs that we did not consider, and we can’t truly afford this?

Here at Unlimited Mortgage Lending, we believe in eliminating those doubts and fears by being Proactive2not Reactive. BEFORE you find your “Dream Home”, the best way to be proactive is to get your loan package underwritten by the lender’s underwriter (the god in the industry) who will issue a Full Approval subject to the property that you find. This is called a “TBD Underwriter Approval.”

Pre-qualified is NOT Pre-approved

Many first-time home buyers think that they are ready to go “big house hunting” with a
pre-qualification letter or even a pre-approval letter. But not all letters are created equal. Sadly, many home buyers make this mistaken assumption. Let’s break them down:

“Pre-qualified” is when your mortgage lender pulls your credit report and uses your information that you provide verbally such as income, bank balances, retirement amounts, credit info, etc. They are not using any supporting documents. Pre-qualified is basically the mortgage lender estimating the loan amount that you should qualify for. This is just an estimate, NOT a guarantee.

  1. Someone that has not any ownership interest in a residential property for the last 3 years
  2. Being proactive means anticipating what might happen, planning ahead, preparing in advance and acting ahead instead of simply reacting to circumstances.

“Pre-approved” means the mortgage lender has pulled your credit report and collected your financial documents. They will submit this information to an automated program (called Desktop Underwriter) that will determine if you are “Approved” or “Ineligible”. The information is not verified or validated. You know the old saying “garbage in, garbage out” well if the loan officer is not experienced you might get a “false positive Approval”. What this does, is give you an estimate of the maximum loan amount that you could be “Approved” for. But this is STILL not a guarantee. Why? Because your application and supporting documentation has not been verified or validated.

Proactive TBD underwriter approval Unlimited Mortgage Lending

“TBD Underwriter Approval” takes the Pre-approval one step further and puts your loan application and supporting documents in the hands of an actual underwriter as if you had found your house, made an offer, and now need the loan. They will scrutinize, verify and validate all your

documentation and determine the exact amount that you are being approved for. The only contingency left is to actually find the property. That’s the “TBD” part—To Be Determined.

In short, the mortgage lending process is 90% prep work and 10% execution. The reality is that in the mortgage lending process -the underwriter is God and what s/he says about your loan application is the Bible. So, by doing the 90% up front, you virtually eliminate any surprises on the back end. No last-minute calls the day before closing to stress you out.

You have been proactive and have done the financial part (the 90%), the rest is relatively easy (the 10%), finding that “Dream Home.” It’s like winning that “Willie Wonka chocolate bar with the golden ticket”.

Advantages of the TBD Underwriter Approval

The advantages of doing this process first are invaluable. Imagine the peace of mind and confidence you’ll have as you check off these boxes:

  • You eliminate the stress of not knowing if your loan will be approved.
  • You eliminate the stress of a rush request from your mortgage lender needing this document or that document signed—before you close!
  • You eliminate the stress of something going wrong at the last minute that would jeopardize the offer on your “Dream Home”.
  • You eliminate stress on your realtor, freeing them up to focus on making sure everything else is moving smoothly such as the home inspection, the disclosures, etc.
  • You position yourself as a serious buyer with a serious offer. In fact, with some sellers your offer may even be considered equal to or better than cash offers.
  • Because your loan is TBD Underwritten, you can offer as little as a 21-day closing period on your contract since all that’s left is the appraisal, insurance, and title work.
  • You can enjoy the experience of shopping for your “Dream Home.”

Now that you know…Don’t risk losing your “Dream Home!” Invest some time now by getting a “TBD Underwriter Approval.” It’s not a matter of “if” you need underwriting, but “when.” Don’t wait for crunch time with an offer on the line: Position yourself now to bid on that “Dream Home” with confidence and peace of mind. Contact us—Florida’s best mortgage brokers—to be Proactive and get started today!

Source: Unlimited Mortgage Lending, LLC

[1] Someone that has not any ownership interest in a residential property for the last 3 years

[2] Being proactive means anticipating what might happen, planning ahead, preparing in advance, and acting ahead instead of simply reacting to circumstances.

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Check if you Qualify for a Loan

Before you start shopping for a home, you need to know exactly how much you can actually qualify for.

Answer 6 simple questions to make sure that you meet the simple basic requirements to qualify for a mortgage.  Once in our “Exclusive Pre-Qualifying Mortgage Calculator,”  all you have to do is plug in your numbers to see if you qualify.  This calculator is based on the income, debt, and purchase price that you enter and will show you if you qualify or not for a Conventional Mortgage Loan or an FHA (Federal Housing Administration) Mortgage Loan.

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