TBD Underwriting Process For Pre-Approval
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What Is a TBD Underwriting Process Pre-Approval Letter

ByAmanda Witthauer

This article will discuss a TBD underwriting process and a TBD property pre-approval letter. In the following paragraphs, we will explain a TBD underwriting process. A TBD underwriting process pre-approval commands weight because it is a full mortgage underwriting pre-approval less the subject property:

The loan officer wants every deal to close, so they are trigger-happy in issuing pre-qualification letters. The reason we do not do this at Preferred Mortgage Rates is clear.

One of the best services offered by Preferred Mortgage Rates is our TBD underwriting process. I am sure everyone reading this has heard or experienced the nightmare of a closing gone bad. The following paragraphs will cover the TBD underwriting process at Preferred Mortgage Rates.

TBD Underwriting Process versus How Loan Officers Issue Pre-Approvals

Loan officers will receive an application, pull credit, verify assets for the down payment, and issue a pre-qualification letter. The problem with this practice is there is much more to a credit report than just your credit score, such as collections, judgments, disputed accounts, charged-off accounts, and sometimes, bankruptcies.

Clients often cannot close their homes due to an error by a loan officer. Or a loan officer is telling the client what they want to hear, NOT the facts.

A pre-qualification letter is not worth the paper it is printed on. A certified underwriter must sign off the loan documentation, so we do that upfront. We know that NOBODY is happy when a deal blows up before closing or, in some cases, at the closing. The realtors are very upset; the seller is in a horrible situation, and you are not buying your new home.

Is a TBD Underwriting Process a Commitment to Lend?

That being said, wouldn’t you like the peace of mind of knowing that your loan pre-approval is a true commitment to lend? We do this to ensure you don’t lose any earnest money put down on the home! The old-fashioned process of a loan pre-qualification letter from your loan officer does not work anymore. With the ever-changing guidelines and regulations in the mortgage industry, many loan officers DO NOT know all the guidelines.

Have confidence in submitting your offer knowing our underwriting staff has signed off your information! Your realtor will love you when they see your pre-approval letter has an underwriter’s signature at the bottom!

You don’t want to pay for an inspection and appraisal to get your loan denied once it gets to an underwriter. We have also found that our real estate partners are much more willing to work with you and be aggressive because they know the deal will close! Once you have that pre-approval, you know the exact payment amount you qualify for, so it’s happy house hunting for you and your family!

Who Can Use TBD Underwriting Process?

Any home buyer who wants a solid iron-clad pre-approval that has been fully underwritten and signed off by our mortgage underwriters. This process is designed for tricky files or borrowers who another lender has turned down! A TBD underwriting process pre-approval is similar to a loan commitment without a subject property:

We underwrite the file with an address TBD (to be determined). We will qualify you for a payment comfortable for you and your family, or we can tell you the maximum payment you will qualify for.

Many of our clients have been dealing with lenders who have lender overlays are were turned down. The TBD process can save the day! With a TBD Underwriting Pre-Approval, buyers can rest assured there will be no stress and that they will not just close on their home loan but will close it on time.

How Does The TBD Underwriting Process Work?

The process is very simple and similar to the old-fashioned method. After your initial consultation with your licensed loan officer, you will fill out an application link. That will allow the loan officer to start your file and verify your credit report.  While they are working on that, you need to send the following information to get your underwriting process started:

  • Last 60 Days Bank Statements – to source down payment
  • Last 30 Days’ Paystubs
  • Last Two Years, W2
  • Last Two Years’ Tax Returns
  • Driver’s License

Once the loan officer has these documents, they will send you three pages to print, sign, and return. Those documents are:

  • SSA Release SSN Verification
  • Borrower’s Certification & Authorization
  • Loan Request Consumer Information Letter

Remember, this service can take the guessing and apprehension out of the home-buying experience. This process is supposed to be fun, not stressful!

Reviewing Mortgage Documents In The Mortgage Process

Your loan officer will review each document so you fully understand each step. Once these are returned with proper signatures, the file will be moved to the underwriter. I am sure you are wondering how we can underwrite your file if you don’t have a house picked out. The answer is simple. Below, you can download an “Underwriting and Loan Approval Process” by FDIC.gov. Once you receive your pre-approval, you can shop for a house.

Please remember that you are approved based on your current situation and debt-to-income ratio. So it is your responsibility to keep your financial situation stable while you shop for houses.

Here are a few examples of killing your pre-approval: Take out new debt – buying a car during this process is not a good idea. Lose your job. Spend your assets we used to approve you. In today’s competitive real estate market, most realtors will not even talk to you without approval. Please get in touch with us at Preferred Mortgage Rates at 844-90-RATES. Or text us for a faster response. You can email us at gcho@gustancho.com to get your approval started and make your underwriting process smooth.