There is a lot of chaos with home buyers finding homeowner insurance options in California now… here is a general outline of what has been provided to insurance agents looking for guidance...
As a proactive measure, we strongly encourage buyers check for insurability before making an offer.
We also encourage seeking insurance coverage indication quotes to include in disclosures on behalf of the sellers.
Pete Sabine & Leslie Whitney
Let's talk about the ins and outs of pre-qualification, pre-approval, and TBD approval.
They may sound similar, but each one is a different stage in the mortgage approval journey.
Pre-Qualification: Just Testing the Waters
Picture pre-qualification as a friendly chat with a loan officer. You'll share your income, assets, debts, and credit score, and they'll give you a ballpark figure of what you might qualify for. Plus, they'll suggest the kind of loan that suits your needs.
But here's the catch: pre-qualification is based on your word, not on verified documents. It's a great way to gauge your purchasing power, but it's far from a mortgage approval guarantee.
Pre-Approval: Things Are Getting Serious
Pre-approval is a step up in the mortgage approval process. Now we're talking about a deep dive into your financial qualifications, including income, employment history, assets, debts, and credit score. You'll need to supply some paperwork like pay stubs, tax returns, and bank statements to back up your claims.
Once the loan officer verifies everything, you'll get a pre-approval letter stating your mortgage loan eligibility up to a certain amount. It's a solid indication you're on the right track to secure that mortgage.
TBD Approval: The Ace up Your Sleeve
TBD (to be determined) approval is pre-approval's mysterious cousin. It's underwritten without a specific property address but requires the same thorough financial review as a regular pre-approval. When you finally find your dream home, your lender will need an appraisal to confirm the property's value and finalize the loan terms.
Why bother with TBD approval?
It's perfect for home shoppers who want a head start on the mortgage process or who want to compete with cash buyers by showing sellers they're serious contenders with an underwritten loan approval.
Comparing the loan Pre-Qualification, Pre-Approval, and TBD Approval
What sets these three apart is the level of verification and lender commitment. Pre-qualification is a casual chat based on your word, pre-approval is a deep dive into your finances backed by documentation, and TBD approval is an underwritten loan pre-approval without a property address.
If you're on the hunt for a mortgage, choose a lender who offers the right approval type for your needs. We recommend an underwritten TBD loan approval to successfully prevail in the competitive home buying process.
Need more info on mortgages and financing? Reach out to us via call or text! We're here to guide you through the mortgage approval maze and find the perfect loan for you.
Pete Sabine & Leslie Whitney
Call or text 925.787.2548.
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