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Real Estate Agents, do you want:

  • Timely Closings

  • Pre-approval letters you can have confidence in

  • To be constantly informed

Working with VanDyk Mortgage allows you to focus on your customer and their needs without the worry of the lending process.  VanDyk Mortgage is a direct lender with over 20 years of experience.

 

Prequalification Letter vs Preapproval Letter 

The terms appear similar, but there is a big difference.  Not only do they cause confusion for home buyers, there seems to be many interpretations from those in the real estate industry as well.

The difference is in documentation and verification.  Is the buyer providing copies of pay stubs and bank statements or is the lender relying on verbal information from the buyer.  While neither is considered to be a Mortgage Committment, obtaining a Preapproval is preferred.

It is possible that the buyer provided correct information and will obtain a Mortgage Committment.  However, there are many circumstances where even though the verbal information is accurate, other details are not mentioned which may have a negative impact on the approval process.  Details like income being off the books, 1099 vs W2, down payment being gift funds, gaps in work history, recent large deposit into bank account, can cause problems obtaining mortgage approval.

Prequalification Letters like the example above are common.  However, not all Lenders provide them in that manner.  At VanDyk Mortgage, we require a more thorough process before providing a Preapproval Letter.  In addition to the credit report, buyers must provide pay stubs or tax returns, bank statements, and a complete application.  We then submit the application to automated underwriting for an initial approval.

At this point, we can submit the buyers application to the underwriter for a Loan Committment.  A Loan Committment essential gives Lender approval for the borrower to borrow up to a certain amount with the conditions that the home appraises properly and there are no title issues.  At VanDyk, we generally continue the process to the point of Loan Committment even before a home has been selected. 

Advantages of a Preapproval Letter:

Although it may seem pushy to require our borrower to provide supporting documentation up front, it is a disservice to our borrower and their Realtor not to get a Preapproval Letter.  The cost to the buyer is high if they don't get qualified in the end.  They will have spent money on earnest money, appraisal and inspections.  They will also have spent a lot of time and emotion in looking for a home.

What is a Realtor Friendly Office

A Realtor Friendly mortgage company is one with: