PARAMOUNT MORTGAGE - LENDER'S BLOG

“A very important step in the home buying process is for the buyer to arm himself with a pre-approved mortgage,” writes Ray Pugel, Coldwell Banker agent on the Payson Roundup news web site.

“Pre-approval is a lender’s commitment to lend money to the home buyer that specifies the loan amount for which the buyer is eligible,” continues Pugel. “This gives the home buyer confidence” and increases the buyer’s “negotiating power” in multiple offer situations.

Pugel has “seen sellers accept offers from pre-approved or cash buyers over buyers with higher dollar offers who have not been approved for a loan.” Pre-approval may be viewed by the seller as having cash in hand.

Starting the approval process requires the borrower to gather all of her personal financial information such as income, debts and assets.

The major items needed include pay stubs from the past 60 days, two months of complete bank statements, two years of tax returns, divorce decree if applicable, and for renters, their present lease agreement.

The borrower should be prepared to fill out an application which will include the price of the home they are interested in along with other details including date of birth, social security number and contact information.

Pre-approval is a detailed process undertaken by a Paramount underwriter to verify financial information. Once completed and approved the borrower is one step closer to closing.

A Paramount mortgage banker can provide assistance and answer all of the borrower’s questions.

Having a mortgage in place gives the borrower another distinct advantage. For those buyers who have started the loan process early on in their home buying quest, they may be able to shorten the escrow period by one or two weeks.

Pugel states that sellers will often consider and evaluate offers “on how quickly the buyer can close escrow on the property.”

If the seller is moving up to a new home and wants to close quickly, it would be advantageous to select a pre-approved borrower over one who is not.