Many people face the disappointment of losing their dream homes to other interested buyers for one reason or the other. It’s a harrowing experience: you find your dream home, imagine your life in it and begin making plans — only to find out that another buyer’s offer was accepted.
This can happen due to a variety of reasons, but sometimes, it’s due to a lack of confidence in a particular buyer, for one reason or another. So how can you stand out from other potential buyers?
If you can’t afford to buy a home in cash and avoid having a mortgage altogether, there’s a way to stand out from your home buying competition. It’s called Approved to Move™, and it can help you avoid the disappointment of losing your dream home to another buyer who the seller perceives to be more qualified.
What Does Approved to Move™ Mean?
In simple terms, Approved to Move™ is a mortgage pre-approval on steroids.
It’s a document you, as a potential buyer, can provide a seller that shows you are not only highly qualified to buy their home, but you’re ready to sign on the dotted line. Having an Approved to Move™ document often looks almost as good as cash to a home seller, because the seller can sleep soundly knowing that, more often than not, a buyer who makes an offer backed by an Approved to Move™ document is going to close on the home.
For the seller, the period of time between when an offer is accepted and when the home sale officially closes can be one of the most stressful stretches of the process. That’s because the seller must hope the buyer who presents the offer is actually able to secure the mortgage they’re saying they can obtain.
Sellers oftentimes have multiple offers that are the same in terms of home sale price and contingencies. The sellers, then, must weigh other factors when making their choice of buyer, and the buyer’s likelihood to close is at the top of that list.
How Is Approved to Move™ Different from a Pre-Approval?
From the outside looking in, you might think Approved to Move™ and pre-approval are similar, and you’d be right – but only to a certain point.
Both are documents that show you, as a buyer, qualify for a mortgage up to a certain amount. They are documents a seller needs to see to assure them that the offer you’re making on their home can be legitimately financed.
But the similarities stop there.
Approved to Move™ is a fully underwritten mortgage document from Embrace Home Loans that shows a seller you are 100% qualified to buy their home for the price you are offering. Unlike a traditional pre-approval document, an Approved to Move™ document demonstrates that the mortgage company has completely verified your bank records, tax statements, credit scores, income, and assets, and that your debt-to-income ratios have passed through underwriting.
Most standard pre-approvals aren’t underwritten nor is documentation verified. They are issued with just a quick inquiry from the credit bureaus, as well as the information provided on the loan application.
Home purchases can sometimes hit a snag with pre-approvals when a mortgage company begins to fully underwrite the loan. This is not the case with Approved to Move™, however, which is a rock solid document that shows a seller you’re fully committed and ready to buy.
What Are the Benefits of Approved to Move™?
Getting a fully underwritten mortgage can be a laborious task.
It takes time and a heck of a lot of documentation to serve as proof you can afford the home you’ve made an offer to buy. The mortgage company needs to verify your employment and income for the last two years, as well as all of your assets and debts. From that process will come a fully underwritten mortgage approval.
Since a pre-approval doesn’t include any of these steps, it’s only a very preliminary document that tells a seller that a buyer can “probably” afford the home at the price they’re offering, based on the limited information the mortgage company has received from the buyer. This is where Approved to Move™ can really help you stand out among the crowd.
With Approved to Move™, all of those verification steps have already been completed, which means your mortgage is ready to be signed.
The seller doesn’t have to worry if your income documents will come back in tip-top shape or if your mortgage company will say you have too high of a debt-to-income ratio. An Approved to Move™ document removes those questions and doubts from a seller’s mind because you as the buyer have already gone through that extensive process.
Approved to Move™ is basically as good as cash from a seller’s point of view.
Stand Out from the Competition with Approved to Move™
Now that you fully understand what Approved to Move™ means and how it can help you as a potential buyer stand out among your competition, it’s time to get all your information in order.
To get Approved to Move™, you will need to provide your Embrace loan officer with various financial information. This includes:
- Two years of W-2s from your employers
- Profit-loss statements if you’re self-employed
- Assets including bank accounts and investment accounts
- Debts such as current mortgages, car loans, credit cards, and student loans
Your loan officer will get a lot of your debt information by pulling your full credit report using your Social Security number, but you’ll need to gather the necessary documentation for the income and asset end of it. After that’s done, there may be questions regarding certain debts, income, or assets you’ll need to verify.
Once everything has been verified, you’ll be given an Approved to Move™ document you can take with you as you search for homes and present to sellers as your fully-approved, ready-to-sign, mortgage-backed offer.
If you’re currently in the market for a new home, why not give yourself the upper hand so that when you find the home of your dreams, you’ve stacked the cards in your favor for the seller to accept your offer?
Our goal at Embrace Home Loans is to make the home buying process as easy as possible. And with an Approved to Move™ document in your hand, it will be.
Contact us today to learn more.