It’s hard to believe that the summer is behind us, that kids have returned to school, and the holidays will soon be upon us. The real estate market has been going strong for so long that most people have grown tired of it. But for those who are in the market for a home, without other options, financing is becoming even more difficult. With interest rates on the rise, prices climbing, and inventory remaining low, there is only one way to win – have a crushing offer. The best way to increase your chances of getting the house you want is to skip the pre-approval and go for the real deal. These are reasons to secure non-QM loans in South Carolina.
What is a Pre-Approval?
When you are a potential homebuyer, it used to be helpful for everyone involved, including you, to know how much money you could potentially borrow for the home of your dreams. Although it wasn’t a guarantee, a pre-approval letter used to be an indicator that you were credit-worthy and that if you made an offer, you could put your money where your mouth was. A lot of the credibility behind a pre-approval letter has gone by the wayside, though, because there is no verification that the information supplied will hold up to the scrutiny of the entire approval process.
What is the Difference Between a Pre-Approval and a Full Approval?
So in another type of market, those who were looking for a home could get along with a pre-approval letter – basically because it made them credit-worthy without having to run a credit application that could impact their credit score. After all, an inquiry is considered a hit, but it was verification enough for sellers and buyers in a less-competitive market. In the current real estate market, though, where things literally sell within 24 hours and offers are accepted at a moment’s notice, a pre-approval is not going to cut it and won’t hold up against a real approval.
A Full Approval Means Business
Full mortgage approval makes you jump through hoops to come up with tons of documentation and can potentially negatively impact your credit rating – when ratings mean everything – unless you go about it the right way. Traditional lenders will make you jump through significant hurdles to get approved – not because they want to, but because they have to according to the rules and regulations of the government. A non-QM mortgage, however, differs because it isn’t held to the same standard as a traditional loan, and it allows for a little breathing room and exceptions. But to a potential seller, it is just as good as any other approval loan!
Why a Non-QM Loan Might Be Your Acceptance Ticket
In a seller’s market, beggars aren’t choosers; choosers want to know that you can deliver on what you promise, which means an offer that you can follow through with. Low inventory and high competition mean that you have to show your cards and be ready to pull the trigger or you’ll be out of the buying pool. At Home Spring Mortgage, we specialize in complex mortgage situations where competition is high and approval verification means everything. Contact us today and let us be the backing you need to get your offer accepted!