Learning about Mortgages from John Meussner is one of my favorite activities on ActiveRain. He writes clearly and always with a sense of humor! When JM Loans says "MORTGAGE MADE EASY", it's John and his team who make that happen.
John set a goal for himself to qualify in many states. Here in the 'Rain, I've watched the list of states grow as John pursued his goal. Now qualified in Mortgage and Lending in AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, WV NMLS #138061 MMCD #1141 , John has lived in several of those states himself: CT, DE, KS, NC, PA then in SoCal, now living and working in NorCal - Fair Oaks, CA.
His "interests outside of real estate include ice hockey, guitar, hiking, rock climbing, diving and cooking. Love being outdoors, in, or on the water. He enjoys being a part of and serving his local community as well through service & volunteer opportunities including Rotary International, SPCA volunteer and currently active in working with Big Brother/Big Sister OC."
Be sure to read some of his other posts -
- In his post Local Lender Myth, John discusses quality over proximity.
- In Low Mortgage Rates vs. Overall Value, John looks at the big picture.
- Explaining Mortgage Jargon, John compares typical excuses to the truth.
- John wrote about The Compound Effect business book club selection.
- Another special post is How to Win An Appraisal Dispute.
Enjoy your time getting to know John or getting to know him better!
Get Approved Before You Find a House
Closing dates. Financing contingencies. Prequal vs Preapproval. These are just a few things sellers are looking at when it comes to reviewing offers on their home. While there are many reason a seller may or may not accept an offer or choose one offer over another, one thing is for certain - any offer that creates FUD (fear, uncertainty, doubt) is going to hurt a potential buyer's chances of getting the home under contract.
One way to get over FUD is to be a buyer that has been fully approved by their lender before they even see the house. A fully approved buyer can close faster, and more importantly, presents minimal risk to a seller. A relatively large percentage of real estate contracts never make it to a closing table, and of those who don't make it, issues with financing present one of the largest hurdles that lead to a cancelled contract. A fully underwritten buyer removes that risk, so a seller can immediately rest assured one of the biggest reasons a contract fails isn't present in their contract.
A fully underwritten offer has verified credit is acceptable, assets are viable for down payment and closing costs, and income/employment have been vetted by an actual underwriter! While some lenders do not offer underwriting prior to obtaining an executed sales contract, others have different rules in how they handle the process. On our team, we will have an underwriter do a full underwrite on a loan file for a buyer seeking preapproval. This includes a full review of anything and everything non-property specific - eg, appraisal, insurance, title, or any condo documentation. With only those things needed, once a contract is obtained, reviewing the file is made much faster!
An offer with a fully underwritten buyer (from our team) includes a signed certificate from an underwriter verifying the buyer's loan file has been approved and reviewed by an actual underwriter. This adds additional assurance and removes yet another layer of risk from the transaction (the risk that the loan officer or assistant processing the application may have missed something along the way).
In the current landscape, with the immense amount of buyer competition for comparatively little housing inventory, every advantage matters, and our 'Buyers Advantage' pre-underwriting program is a step we're taking with all buyers as part of the preapproval process. While we're not the only lender that offers this, there are plenty of lenders who will not offer an underwriting review. Just the other day, an agent friend called to ask about the process, because her buyer's lender refused, stating that it wasn't possible to have an underwriter review a file prior to an accepted contract. He was mistaken, and unfortunately others working with a company that wouldn't allow it are putting their customers at a disadvantage when up against lenders that do allow underwriting review.
Offer price matters. Creating an offer appealing to an individual seller goes a long way toward getting a home. In addition, with immense competition, every additional advantage helps, and with a pre-underwritten offer, a buyer is comparable in the strength of their financing to cash (and often, can be more competitive if cash buyers are seeking a "discount" on the price of the home). We're currently offering underwriting approvals for all buyers seeking preapproval, and doing all we can to help our buyer clients stand out from the pack in competitive offer situations.
Visit My Website!