TBD Approvals and Why They're So Important

Wow!  Is it busy out there or what!  It's hard to get an offer accepted any more.... and with underwriting, appraisals and everything else backed up, there's more and more opportunities for things to wrong.  And with everyone now asking for 45+ day contracts- that leaves more TIME for things to go wrong. Honestly, you're half as likely to some have issues (like a borrower losing a job, getting cold feet, getting sick or transferred or whatever) with a 30 day contract as a 60 day contract.  Ick!

And if underwriting and appraisals are backed up.... that means it's later and later in the process before some issues come out that could have been taken care of earlier if you wouldn't have had to wait and wait your turn to be underwritten..... which equals DELAYS. :(  Yuck!

So what's a TBD Approval anyway?
A TBD approval is a loan approval by an underwriter prior to the borrower going under contract.  You want the same underwriter to review and approve your buyers file BEFORE they go under contract that will be issuing the final approval. That way all of those loose ends are taken care of UP FRONT instead of the week before closing (or worse!). Then once you go under contract all you have to worry about is the appraisal and the property itself. WHEW!

Buyer's Agents: HOLD YOUR HORSES!!!
I know how it works. You get a call from a buyer who has never talked to you and never talked to a lender and they have a house they want to write an offer on... and you better be there to show them in 10 minutes.  It's URGENT!  Their lease is up in six weeks and they HAVE to move. (These guys by the way are often the ones with the worst problems...)
Even if the buyer seems SUPER well qualified, that doesn't mean that they don't have SUPER complicated finances that could easily turn into a delay right before closing.
Stick to your guns!  Tell them to hold their horses!  Have them get a FULL TBD approval before you write that offer!  Sure, it will probably take a couple of weeks- maybe even three or four.  Now, I'm not going to pretend like I don't know that a lot of agents out there are excited at the prospect of a quick paycheck, but a slow check is better than no check... .and that's what you're asking for if you rush your buyers into a purchase.
Trust me! It will be SOOOOOOOOO worth it when Buyers, Sellers, you, the Listing Agent, lender and everyone involved can have a stress-free, hassle-free, happy, nice, good, home buying experience.

Seller's Agents: INSIST THAT BUYERS HAVE TBD APPROVALS
I promise, you'll be doing your Sellers and yourself a BIG favor!