Must Have Loan Pre-Approvals in Denver Real Estate Market
As many of you know, the Denver Real Estate Market has been on fire since earlier this year. Even the slight rise in interest rates had very little bearing on the number of loan applications we saw come in earlier this summer. Home values are the higest that they have been in years and homes are on and off the market with 3-6 days after being listed.
What does this all mean? It means that for your Realtor to be the most effective, they will require that your offer will not be contingent on the sale of your current home, and that you have a home loan pre-approval. Almost all offers on homes are at or above asking price, with no contingencies and proof that the buyer is a solid, qualified buyer.
Denver Realtor Lane Horung said, "If you are not going to pay cash for a house, it has never been more important to be pre-approved for a loan," and went on to say that if you are not a cash buyer you already at a disadvantage in this marketplace.
Not all of us have hundreds of thousands of dollars lying around to buy a home with, so the next best thing you can do is work with a lender who offers a guaranteed home loan pre-approval in Denver. Please note that there is a difference between a pre-qualification letter and a pre-approval letter.
What is the difference between a Loan Pre-Qualification and a Loan Pre-Approval?
A loan pre-qualification letter from a lender simply means that they have taken a quick look at your financial qualifying factors such as your income, savings, debt, and length of employment. With this information they have given an estimate as to what you could potentially afford in a home loan barring any other factors found during processing and underwriting.
A loan pre-approval letter from your lender means that have processed your loan, and a qualified Underwriter hasapproved your loan application and reviewed the required supporting documentation including W2s, tax returns, income, current debt, debt-to-income ratio, savings and more depending on the loan type and other personal factors. The loan pre-approval letter serves as proof to the seller and their real estate agent that you are a buyer with a lender who has guaranteed to finance your home loan.
Do all lenders offer pre-approval letters?
In short, no. Many offer pre-qualification letters but what the Denver real estate market is demanding is a pre-approval, and written proof from your lender of such.
Does Popish Mortgage Group offer home loan Pre-Approvals?
Yes. As you may or may not be aware, we are a division of Universal Lending Corporation, a lender in Denver for more than 35 years. Universal Lending has developed a program called the Performance Guarantee Program which is not only a pre-approval but is a guarantee that the loan is approved and will be funded by Universal Lending Corporation and in addition to that guarantee, we will guarantee up to $10,000 of the buyers earnest money.
How does the Performance Guarantee work?
The Performance Guarantee is a Conditional Loan Commitment with Guarantee of Earnest Money. This makes you even more competitive
How it works:
1. Borrower makes application, complete with all required documentation. You get them started in the home buying process proactively and with confidence.
2. Loan is submitted to underwriting and receives a “Conditional Loan Commitment with Earnest Money Performance Guarantee.” This is not only a loan pre-approval letter but also a letter that certifies that Popish Mortgage Group a division of Universal Lending Corporation certifies that they will fund the buyer's earnest money up to $10,000. As a buyer, the Performance Guarantee is better than a loan pre-approval and makes you more competitive.
3. A “Certificate of Qualification” will be available when your borrower makes an offer. When your contract is written, the Conditional Loan Commitment with Guarantee of Earnest Money demonstrates the borrowers loan approval and ability to purchase.
Would you like more information on the Performance Guarantee program? Contact Popish Mortgage Group today!