A quick story about Brent and Amy who just bought a home with my help. Brent is a partner in a CPA firm, and Amy is a professional photographer who specializes in portraits. Brent and Amy were buying their second home. They recalled from their previous home purchase the importance of getting loan approval
Brent called me about loan preapproval, and he mentioned that he would also be getting a prequalification from Amy’s credit union, a credit union with which I am very familiar.
I said, “Brent, I know Amy’s credit union very well. They do not PRE-APPROVE loans, they just issue a PRE-QUALIFICATION letter that says they still have to process your loan and get it pre-approved after they get a contract on a house. It’s a weak assurance to the seller that you will actually get a loan. Moreover, there will be multiple offers on the house you choose because we have more buyers than houses for sale. Also, your wife’s credit union has a reputation for taking 60 days to close a loan, while mortgage bankers like me can get your loan processed, underwritten, and funded in three weeks.”
“When we issue a preapproval letter, your loan will be fully processed, underwritten, cleared to close any time, and ready to fund. You have almost the same financial power of an all-cash buyer, with an appraisal to protect you from over-paying for the house.”
I went on to say, “Brent, when you sell your house you’ll find out that there are three kinds of buyers: an all cash buyer who asks for no contingencies; a pre-approved buyer who has a contingency for an appraisal, but is otherwise ready to close quickly; and a pre-qualified buyer who does not have an approved loan, and will need 45-60 days to clear any contingencies.”
Brent asked, “How long does it take to fully process my loan pre-approval at AFN?” I replied, “Two to three weeks, depending on the complexity of your financial profile. A pre-approved loan at AFN gives you the financial power to compete with the cash buyers, and we make room on your loan to go higher than the price of the house, just in case you get into a bidding situation.”
Brent said, I don’t want to go thousands of dollars over the other bidders. I would want to bid enough to win the deal, but not too much.” I said, “We’re way ahead of you on that. Ask your agent to show you an Escalation Clause.” Brent asked, “Markita, what do you need from us to get our loan pre-approved?” I gave him the list of documents I needed to get him pre-approved. “Fill these papers out to the best of your ability, then upload them to us through the secure web portal that I will send to you by text message.”
Brent and Amy’s house got nine offers the first week it was on the market. They didn’t choose the highest offer because the buyers had just a pre-qualification letter; they chose of sale with the highest bidder who had the fewest contingencies, and a fully approved loan. We closed the sale in two weeks, and the buyers let Amy and Brent rent back the house for sixty days to get a house under contract, close, move, and get a cleaning crew to deep clean the house.
Meanwhile, they found a 1.5 story house, with the master bedroom on the main level, bid above the asking price, and included an escalation clause to win the bidding. The house backs to a golf course. Brent is an excellent golfer, and he keeps his cart on a battery charger inside the third car garage.
All of the pieces fell into place because Brent and Amy had the good sense to follow instructions from a seasoned veteran of the mortgage market and real estate market.
You can get your home loan pre-approval, starting today. Call Markita Woods, the Queen of Mortgages at 703-929-2274 to get your home loan pre-approved. Or start easily online at www.applywithmarkita.com
Markita U. Woods
(703) 929-2274 direct
(703) 991-5945 fax
Appy Now at www.meetmylender.com