As a mortgage professional I always look for ways to make real estate agents' job much easier and the one thing at the top of my list is to have buyers not just pre-approved but have a a Firm Lender Commitment form an underwriter before making an offer on a home or in some cases even looking for a home. Everyone has their own system when prequalifying a person however the final approval is going to come from the underwriter and not the loan officer or the processor unless all three are the same person, then that's an entire different issue. (Don't laugh I've heard worse)
The best way that your buyer can secure financing is to have a Firm Lender Commitment (FLC) as opposed to a Pre-approval or Pre-qualification. A pre-approval or pre-qualification is a letter that states that the underwriter might approve you but a FLC is a letter stating that the buyer is approved and can only be issued by an underwriter. In some cases a real estate agent may not be able to see the FLC due to privacy laws however if the buyer has the desire to show you then it's perfectly fine. If that is not the case than you should ask the lender or broker for something in writing that states that the buyer is credit approved by the underwriter. If you are using broker than you may want to request the name of the lender be placed on the letter and of course all approvals come with conditions but at least you have a buyer who actually has their file on the underwriter's desk.
Having a FLC will reduce the risks of any surprises at the closing table because your buyer will already have financing secured. In addition the FLC will already haveterms, payment, closing costs and rate already spelled out and approved. Having an FLC means that the underwriter, the person that has the only say when it comes to approving a mortgage, has reviewed and verified all documentation an issued a FLC with conditions that are usually technical in nature such as appraisal, title and insurance requirements.
Usually and FLC is good for 120 days from the initial approval which is normally how long the initial credit report is good for that was submitted with your file. However, some underwriters may require updated pay stubs and banking statements every 30 days.
In summary, having an FLC from your buyer make take an extra 24-48 hours to obtain pending on what your buyers states on the application and what is verifiable but at least you will know that you have a serious buyer who is qualified by an underwriter.
Hope this helps!
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