Posted on 09/27/2013

Pre-Approval vs. Get Committed®

3 minute read

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 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 review various aspects of the borrower’s finances and several important details about the home being purchased. Typically, lenders begin this process with pre-approval.

To obtain pre-approval, Compass Mortgage (or any other lender) will run your credit score and fill out a loan application with the information you provide regarding income, employment history, assets and possibly other financial details. The lender will analyze this information and determine whether or not you are eligible for a loan. If you qualify, the lender will agree to a pre-approval that states your eligibility, subject to verification of the financial documentation you provided.

Get Committed®—Compass Mortgage’s distinctive program which results in a loan commitment—takes pre-approval a big step further. Think about it: A loan commitment is a promise from Compass Mortgage to fund the loan for which you are applying! To secure this loan commitment, we will ask you to corroborate the financial information discussed with your loan officer during the process of pre-qualification by providing several documents including tax returns, W-2s, pay stubs, bank statements and the source (or sources) of funds for your down payment and closing costs.

Your loan officer will then submit the application and all the necessary documents to an underwriter. Once the underwriter has reviewed and fully analyzed your credit application, Compass Mortgage can issue a Get Committed® loan commitment.

This loan commitment provides the details of the mortgage Compass has agreed to provide. A Get Committed® loan commitment means that you are fully approved, even before you find a home (subject to an appraisal once you identify a home you would like to purchase).

Why is this so important?

A client who qualifies for 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, making your offer more attractive than others that come in.  This allows you to get into the home you want because you’ve risen about the competition.

Get Committed® 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 Compass Mortgage for your purchase.  And that means 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—even 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 Get Committed®—a confirmed loan commitment!

With Get Committed® Plus, you have the added benefit of a locked (guaranteed) rate acquirable at any point during the application process.

Thinking of purchasing a home? Our Mortgage 101 Handbook is the ultimate guide for first-time homebuyers.

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