Negotiate Better with a Fully Approved Loan!

Posted by George Beasley on Tuesday, May 1st, 2018 at 3:56pm.

By Melissa Holt, Cardinal Financial

With the different terminology floating around it is difficult to decipher exactly what type of a loan approval you have.  And why does it matter?  Imagine you are fully packed, the moving truck will arrive in 2 days and you’ve got the vision of your new life dancing in your head.  Suddenly you receive a phone call from your lender stating that you are no longer approved for a home loan.  Now what?  

How do you protect your dream?  How do you give the seller confidence that your financing will not fall apart?  How do you negotiate better so your offer stands out amongst the competition?  It’s easy!

The key is to understand the process and know what to ask for.  In the typical pre-approval process, the loan originator will take the loan application, request documentation from the borrower and then run the data they have through an automated underwriting system to see if the loan is approved based on the information provided at that time.  It’s important to know that not every loan originator is trained or has experience doing the underwriter’s job to determine if a loan approval is valid.

What does a loan underwriter do?  The underwriter is the fact checker.  The underwriter will review all necessary documentation to confirm or update the data accordingly.  Only an underwriter can issue a loan commitment on behalf of the lender and based on the changes in data, generally the approval is modified or in a worst-case scenario, declined all together.  

To avoid a nightmare of your own, ask your loan originator to submit your loan package to an underwriter for full review and approval BEFORE you go home shopping! Doing so will give you greater success when making an offer, will make the transaction easier, faster and will save you time, money and frustration.

For more information contact Melissa Holt at Cardinal Financial

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