A Stronger Pre-Approval for a Stronger Offer.With the Platinum Pre-Approval program from Waterstone Mortgage, you’ll receive a rock-solid pre-approval before you start house hunting – allowing you to make a stronger offer on your new home.
The Platinum Pre-Approval program allows you to present a solid approval that is not subject to any additional credit, income or asset verification when negotiating a purchase contract – thus giving you a stronger offer than buyers who have only been pre-qualified.
Additionally, because the majority of your credit documents are reviewed upfront, a Platinum Pre-Approval can help you get to the closing table (and into your new home) quickly.
How is a Platinum Pre-Approval Different from a Pre-Qualification?
Pre-qualify and pre-approve are often used interchangeably – which can be very confusing. If not understood correctly, it can cost you an accepted offer on your new home. Let us provide some clarity on the difference between the two and show you how the pre-approval process works at Waterstone Mortgage.
A pre-qualification is a lender’s estimate of how much you could be eligible to borrow based on the financial information you supply. A pre-qualification is less formal than pre-approval and does not include an income and asset review. A pre-qualification does not mean you will be approved for a loan – it is only an estimate of your creditworthiness based on the information you provided.
If you plan to start looking for a home, it’s a good idea to get pre-approved. Because a pre-qualification is less formal, getting pre-approved will help you make a stronger offer on a home.
A pre-approval means you have met with a lender; your income, assets, and credit have been reviewed (which involves pulling your credit report); and the lender believes you can readily qualify for a given loan amount.
At Waterstone Mortgage, we will gather the following information from you during the pre-approval process:
· Most recent copies of pay stubs for the last 30 consecutive days
· Copy of W-2 statements for past two years
· Copy of complete personal tax returns for past two years
· Complete copy of personal and business tax returns for past two years if either borrower is self-employed
· Statements for last 60 days from any stocks, bonds or mutual funds you wish to disclose for purposes of mortgage loan approval
· Statement from retirement accounts such as 401(k), IRA, etc. covering last 60 days
· Copy of the divorce decree or marital separation agreement if applicable
· Clear copy of borrower(s) driver license
· Clear copy of borrower(s) Social Security card
· Bank statements (checking and savings) for most recent 2 months
After you have been pre-approved, you will receive a pre-approval letter for an exact loan amount, allowing you to look for a home at or below that price level. Although not a final loan commitment, the pre-approval letter can be shown to listing agents when making an offer on a home. It demonstrates your financial strength and shows that you have the ability to finance a purchase.
Your pre-approval is what we call a “conditional commitment”. It is NOT a guaranteed commitment to lend – you will need to have an accepted offer and a final underwriting review before your loan is cleared to close.
The Platinum Pre-Approval Process
· Before you start your home search, meet with a Waterstone Mortgage loan professional for an initial loan consultation to discuss your mortgage needs and see if the Platinum Pre-Approval program is right for you.
· Work with your Waterstone Mortgage loan professional to fill out a loan application.
· Once your application has been submitted, our Underwriting department will review your credit history, income, assets, and debts to determine if you meet the qualifications and standards for a Platinum Pre-Approval.
· Congratulations – you’ve been pre-approved! You will receive a Platinum Pre-Approval letter outlining the loan amount, rate, and terms of your pre-approval. This letter can be added to your purchase contract to show the seller that you are conditionally approved for this home and your offer is backed by the strength and security of Waterstone Mortgage.
· As soon as your offer is accepted, contact your Waterstone Mortgage loan professional to finalize your financing details.