First to clarify TBD – To Be Determined; meaning the property has yet to be found or under contract.
Many buyers think they need to find a house before getting “Approved” for a mortgage. That is NOT True! In reality the majority of the underwriting process can be done before finding your new home with a TBD file.
Buying a home can be stressful from negotiating the sales price of the home to the loan and underwriting process.
The solution to reducing the stress: a TBD Approval! There is a big difference between getting “Pre-Approved” from a lender and having an “Approval”. And it will carry more weight with the seller and seller’s agent when making an offer.
TBD Process: signing disclosures, providing supporting docs i.e. income, assets etc. The file is then submitted to the lender. Your file will be completely underwritten by an underwriter and fully approved. Then you will go out and find your new home. J
When you find the home you want you will then negotiate with the seller on a price which you both agree on. In the negotiation process you will provide the seller with an “Approval Letter” which carries more weight than a “pre-approval” letter since the underwriter has already seen, analyzed and accepted your credit report, income and assets.
Once you have a property under contract the only thing that the underwriter will require is specific information on the property: appraisal, title, homeowners insurance, inspections etc.
TBD’s are a HUGE benefit to the buyer, seller, Real Estate Agents.
#1. Buyers have more confidence and less stress knowing that the underwriter has viewed, confirmed and approved their financial picture.
#2. Sellers have less fallout when dealing with TBD approvals and TBD buyers are held in higher esteem than buyers who have only been “Pre-Approved”.
#3. The benefit to Buyer, Seller and Real Estate Agents knows that the process will be smoother and take less time to close the sale. Time needed to close will be reduced by 2 -3 weeks!
How do you get TBD approved and enjoy these benefits? Contact Me at: (816) 728-1384 or Cindy@CindySeely.com
I can provide TBD’s on Conventional, VA, FHA and USDA Loan Products.
If you have any questions please don’t hesitate to ask and I will answer.
NMLS # 245378, Mo 10-1649-MLO, Ks 0009720