Ensure Your Offer is Taken Seriously with PYT

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to prepare for your home loan and obtain a Credit Approval from your Lender’s underwriting team.  Be sure to ask your Lender if they participate with Protect Your Transaction (PYT), where you can not only obtain an Underwriters’ Credit Approval, you will also receive up to $10,000 in Home-Buying protection.

Even if you are in a market that is not as competitive, understanding your numbers and creating a buying strategy that supports your budget will give you the confidence of knowing that your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have strong relationships with lenders who will be able to help you with this process.  Also, when you do interview your REALTOR®, you’ll want to ask about their knowledge on the Protect Your Transaction service, as there are unique strategies that they can use once you have your Certificate of Assurance.  Once you have select your lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”  Your PYT Loan Officer will use this information to obtain your PYT Credit Approval.

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting PYT Credit Approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many homebuyers do not understand the importance of making an offer with a Credit Approved Pre-Qualification form.  Having your Underwriting Credit Approval upfront will raise the importance of your offer and give you the best opportunity in having the Seller chose yours.  And be sure to have your Loan Officer call the Listing Agent on your behalf as well.

 

Karen Jones is a Licensed Mortgage Loan Officer (NMLS 307015) located in Phoenix and serving Arizona and California consumers with their home lending needs. As a Banker of over 39 years, Karen is dedicated in ensuring that her clients are well educated and prepared for their new home purchase.  Learn more about our 100% Financing programs and obtain your Buyer Credit Approval before you start shopping. Let a home loan specialist guide you by contacting Home Loan Officer, Karen Jones from AmeriFirst Financial, Inc. located in Phoenix, Arizona.

AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2018. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. Click Here for Licensing Information. The services provided by Karen Jones are not a condition, nor do they create any obligation for any form of remuneration for any real estate settlement service related to any referral.  The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Karen Jones does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Karen Jones will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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