At some point in your home shopping process you will be asked if you have been “pre-approved”, a commonly misunderstood home financing term. Knowing the difference between a pre-approval and Get Committed® will help you avoid surprises when you are in the process of applying for a mortgage loan.
In order to be approved for a loan, a lender must verify various aspects of your finances and of the home you are purchasing. Typically lenders begin this process with a pre-approval.
To get a pre-approval, the lender will run your credit score and fill out a loan application with the information you provide regarding income, employment history, assets, etc. The lender will analyze this information and issue a decision on whether or not you are eligible for a loan. If you are qualified for a loan, the lender will issue you a pre-approval that states your qualification subject to verification of certain items, such as income and assets.
Our Get Committed Program takes pre-approval a big step further. To verify the financial information discussed with your loan officer during pre-qualification, you will be asked to provide various documents including tax returns, W-2s, pay stubs, bank statements, and source of funds for your down payment and closing costs.
Your loan officer will then submit the application, along with the necessary documents, to an underwriter. Once the underwriter has reviewed and fully analyzed your credit package, Compass Mortgage can issue a Get Committed loan commitment.
This loan commitment provides the details of the mortgage Compass has agreed to provide. Getting Committed means that you are fully approved, subject to an appraisal before finding a home.
Why is this so important?
A client who participates in Get Committed can beat out other bids on a property because they have the advantage. This better-than-cash offer stands out to a seller, and they’ll take your offer over the others that come in. This allows you to get into the home you want because you’ve risen about the competition.
Our Get Committed Program allows you to:
- Present a “better-than-cash” offer! In a multiple offer situation, this shows that you are a serious buyer, ready to purchase the property, and have the capability to quickly complete the transaction.
- Have peace of mind. You already have a reliable commitment from your lender for your purchase. The homebuying process will be smooth sailing. The hard work is done, and you just need to find a property you love.
- Act quickly. Having your loan ready to go, prior to finding a home, will allow you to expedite the loan process.
In today’s tough market, it is essential to stand out from other potential buyers. Stand out with a loan commitment!
It is important to note that the rate presented with your loan commitment is a qualified rate not a locked rate; rates are subject to change based on the market at the time you find your home to purchase.
Thinking of purchasing a home? Our Mortgage 101 Handbook is the ultimate guide for first-time homebuyers.