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New American Funding shares how to put your offer on a new home in first position to get accepted

Posted at 8:00 AM, Aug 07, 2014
and last updated 2014-10-03 12:48:35-04

New American Funding is a paid advertiser of Sonoran Living Live

There are many unfamiliar terms when starting and going through the mortgage process.  One of the first and most confusing parts comes in knowing the difference between getting Prequalified for a mortgage or getting Preapproved or even Approved.

When beginning the process in Arizona, it is necessary to obtain a Prequalification Form from a loan originator.  This form is an Arizona Association of Realtors standard form which must be included with each real estate purchase contract and becomes part of the contract.  Although it not property specific and outlines the buyers name(s), marital status, type of property, amount of the loan and proposed payments, along with the status of the prequalification and how much documentation has been provided by the borrower/buyer for the consideration of the mortgage loan.

With a PreApproval, a prequalification is done and taken to another step further by actually running the desktop underwriting software, to obtain the preapproval on the scenario being represented on the
Prequalification Form.  This is always better for the borrower/buyer and provides a clear representation of the needed documentation and ability to obtain mortgage financing.

If a borrower/buyer wants to be in the best position possible when making offers on homes, they will actually take the process one important step farther, and get a To Be Determined (TBD) Approval.  The TBD approval is when the loan originator actually obtains all documentation, verifications of employment and assets to prepare a complete file for submission to the Underwriter.  The Underwriter will then review and underwrite the file based on a requested purchase price for a property to be identified (TBD) at a later time.  The borrower is then "Approved" for a TBD property and the Underwriter issued a signed Approval specifying the loan amount and TBD property.   (Once a property is under contract, the file goes back to the Underwriter for review of the title report and appraisal for underwriting of the property.  The Underwriter then issues the Final Approval and loan documents are drawn for signature, return and funding of the mortgage loan and the Close of Escrow.

The TBD Approval will put the buyer in the best possible position when submitting offers on a home.  It demonstrates to the sellers that there are no loan contingencies on the buyers and provides confidence in the buyers ability to close escrow on time.  This is especially beneficially to both the buyer (and seller) if there are multiple offers on the property, a TBD Approved buyer will be in first place to have their offer accepted!  Working with a licensed mortgage originator such as Lisa Amato, NMLS #249826, will provide you with the ability to obtain a TBD Approval and have your offer in first place to purchase your dream home!

New American Funding, NMLS #6606, is a Fannie Mae and Freddie Mac Direct Seller/Servicer, FHA Direct Endorsement - HUD Approved, and VA Automatic mortgage lender.  The company is licensed in 33 states including Arizona, BK #0912376, with a local branch in Scottsdale, Mesa and opening soon in Fountain Hills and the West Valley.  Lisa Amato, NMLS #249826, is a Senior Mortgage Consultant with 21 years of experience in finance and mortgage lending. Amato will provide options for your next home purchase or refinance, serving as your resource for information and guidance through the loan process, ensuring that all of your questions are answered while helping you achieve your goals.

New American Funding  
(480) 244-6490


New American Funding is a paid advertiser of Sonoran Living Live