First-Time Homebuyer’s Guide: Part 13
Home loan pre-approval
You’ve just submitted an application through Rate’s Digital Mortgage, making one of life’s smartest decisions easier, faster and more transparent. After a minute or two, you receive credit scores from the three big bureaus, and your “good” credit scores classify you as a low-risk borrower among mortgage lenders. Now it’s time to identify the home loan that best fits your life situation (and since you’ve already used the GRAffordable loan finder tool, this step should go quickly). After you’ve found your perfect home loan, the World’s First Digital Mortgage provides another outstanding benefit: a real approval.
Do you want to turn yourself into a power buyer and compete with cash offers? Supercharge your offer with PowerBid Pre-Approval from Rate and tell sellers and agents that you’re ready to buy.
Getting your loan pre-approved used to take days, not minutes. Applying for a mortgage online through Rate streamlines the process because of the automated underwriting system, which analyzes your financial information and credit scores electronically to produce instantaneous results. The benefits of securing loan pre-approval are significant:
- No time is spent looking for homes outside your price range.
- Real estate agents and sellers know you’re a serious buyer.
- Purchase offers are backed by official documentation.
Though a real approval gives you an advantage over other buyers, don’t confuse it with a final approval.
Final approval is granted when you close on your home. This happens when the underwriter is satisfied with the documentation and information you and your loan officer have provided, and a “Clear to Close” notice (CTC) is issued.
With a real approval letter from Rate, you can go forward with confidence, clarity and a better sense of control. The painful discussion that starts with, “Well, do you think we can afford it?” will be entirely avoided because you’ll know exactly how much you can finance. And real estate agents are more likely to make the extra effort on your behalf, knowing that your search for the perfect home is legitimate and serious. In other words, in their eyes, you’re not just walking into their store and ‘browsing’. It can often be hard to tell when someone means business, but with a real approval letter in your hand, you leave no doubt as to your intentions.
In next week’s First-Time Homebuyer’s Guide…
Part 14: Securely upload and digitally sign your loan documents
*“Real Approval” means an automated underwriting system approval based upon credit information supplied by applicant and subject to Rate’s review of loan documents. Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Rate for current rates.
Disclaimer
PowerBid Approval (the “Approval”) is contingent upon receipt of executed sales contract, an acceptable appraisal supporting value, valid hazard insurance policy, and a re-review of your financial condition. Rate, Inc. reserves the right to revoke this Approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation and/or if any information contained your application is untrue, incomplete or inaccurate. Receipt of an application does not represent an approval for financing or interest rate guarantee. Not all applicants will be approved for financing. Restrictions may apply, contact Rate for current rates and for more information.