Pre-Approvals As TBD Subject Property Mortgage Underwriting

This BLOG On TBD Subject Property Mortgage Underwriting Was UPDATED On January 12th, 2018

All pre-approvals at The Gustan Cho Team at USA Mortgage are TBD Subject Property Mortgage Underwriting approvals.

  • What TBD Subject Property Mortgage Underwriting is that a borrowers mortgage loan application is fully underwritten and signed off by mortgage underwriters. TBD Subject Property Mortgage Underwriting approvals are full loan commitments
  • TBD Subject Property Mortgage Underwriting shows strength of home buyers
  • Listing Real Estate Agents are more likely to recommend home buyers who have TBD Subject Property Mortgage Underwriting Approvals

What this means is that the mortgage underwriter has reviewed the following:

  • Borrowers mortgage loan application
  • Credit Scores and Credit Report
  • Bank Statements
  • Tax Returns, W2s, paycheck stubs
  • Bank Statements and Asset Information
  • Other mortgage docs that is applicable to borrowers such as the following:
    • Bankruptcy paperwork
    • Prior foreclosure paperwork
    • Divorce decree and/or child support/alimony docs
    • Letter Of Explanations

Once a mortgage underwriter issues a TBD Subject Property Mortgage Underwriting Approval, the only condition that is missing will be the real estate purchase contract. The property then gets underwritten after the appraisal is ordered and completed.

TBD Subject Property Mortgage Underwriting Versus Pre-Qualification

All mortgage pre-approval letters issued by loan officers are not created equal.

  • There are some loan officers that issue pre-approval letters in a matter of minutes
  • Some issue pre-approval letters without even pulling credit and just taking borrowers words or going off a credit report from Credit Karma or other third part credit service
  • Again, other loan officers issue pre-approval letters without gathering and reviewing mortgage docs. Over 75% of our borrowers at The Gustan Cho Team at USA Mortgage are borrowers who either gotten a last minute mortgage denial or are stressing over their mortgage process with their current lender
  • Loan Officers can issue a pre-qualification letter after the following:
    • Interviewed the borrower
    • Reviewed borrower’s loan application, credit scores, credit report
    • Ran file through Automated Underwriting System (AUS)
    • Collected and reviewed mortgage docs
  • A pre-approval should not be issued by any loan officer
  • All of our pre-approvals at The Gustan Cho Team at USA Mortgage are fully underwritten and signed off by our mortgage underwriters
  • All of our pre-approvals are full credit mortgage loan approvals

Borrowers can rest assured that once pre-approved with us that their home loan will close.

TBD Subject Property Mortgage Underwriting Versus Traditional Underwrites

The traditional way of getting a residential mortgage loan approval is to get a pre-approval from a mortgage lender and then entering into a real estate purchase contract.

  • In order for the mortgage lender to submit mortgage application to start processing and underwriting, a real estate purchase contract is necessary with traditional mortgage underwriting
  • However, with our TBD Subject Property Mortgage Underwriting we can start processing and underwriting mortgage application for a conditional approval without a real estate purchase contract
  • There is no difference than other type of mortgage processing or underwriting
  • The only difference is that the subject property will be a condition
  • The real estate contract can be submitted at a later date along the other conditions after conditional mortgage loan approval

Benefits Of TBD Subject Property Mortgage Underwriting

TBD Subject Property Mortgage Underwriting offers great benefits for those mortgage loan borrowers who have challenged credit or very high debt to income ratios.

  • The TBD Subject Property mortgage underwriter will underwrite the mortgage application the traditional way with the exception of the real estate purchase contract
  • Borrowers need to provide all documents such as the following:
    • Two years tax returns
    • Two years W-2s, recent pay check stubs
    • Two months bank statements
    • Other applicable documents requested by the mortgage loan underwriter
  • TBD Subject Property mortgage underwriting applications are available for both government and conventional loans programs as well as non-qm loans
  • By going the TBD Subject Property mortgage underwriting approval process, borrowers can rest assured that once they get a mortgage loan approval they are approved as long as they find a property
  • Instead of providing realtor a pre-approval signed by a loan officer, the pre-approval letter will be a full credit loan approval that was fully underwritten and signed off the mortgage underwriter
  • Home buyers will be armed with a approval with the only condition being that they enter into a real estate purchase contract and the appraisal

Home Buyers who need a direct lender with no mortgage overlays on government and conventional loans can contact The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com. We are available 7 days a week, evenings, weekends, and holidays. All of our pre-approvals are TBD Subject Property Underwriting Approvals. We close 100% of all of our pre-approvals.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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