It is important to understand the difference between a fully underwritten ‘Pre-approval’ and one that is truly only a ‘Rate Hold’.
- A basic Pre-approval that is not underwritten, and that often does not even include a requirement for all the documents that will be needed to underwrite an actual purchase.
- What you have is a piece of paper that does nothing much more than hold a rate for you, which is only of any value to the borrower if that borrower actually does end up meeting the qualification criteria for a mortgage on an accepted offer to purchase.
- If you don’t qualify, you will have wasted much time and effort, and also that of your Realtor and the Sellers Realtor, and…well you get my point.
- A proper fully underwritten Pre-approval where the borrower submits all the documents that will be later required, and the file is then underwritten by a mortgage lender (not many will do that because such a low percentage (around 15%) of Pre-approvals actually become a purchase.
- Properly done, this gives the borrower a clear path to making a purchase knowing there will be no surprises on the financing element of the purchase.
At Jencor, we will:
- Collect from you all the documents that will ultimately be required so there will be no surprises later on.
- Our professional Underwriting Team will fully review and underwrite your complete file.
- We will also submit your file to at least one Mortgage Lender that will also underwrite your file and will issue a Pre-approval.
- That Pre-approval will also include a rate hold that will protect you from any potential rate increases during the 90 or 120 days that the Pre-approval runs for.
- All of which means that your Pre-approval will be worth well more than the piece of paper it is written on.
So now when your Banker or Mortgage Broker says you are Pre-approved, you now know what to ask them about to know what you truly have. And you also will know what to tell your Realtor what you have.