I recently had the chance to speak with certified mortgage advisor Wally Elibiary of Fairway Independent Mortgage regarding the state of our market, and I’m excited to share our full conversation with you today.

First of all, it’s a fantastic time to move up. Home prices have risen dramatically over the last several years, meaning homeowners who have built up equity over that time can now apply it toward purchasing their next home.

This is especially true given the recent influx of inventory. Increased supply equals, first, an increased number of choices for today’s buyers, and second: greater leverage.

If you are interested in purchasing a home, you’ll need to get pre-approved. According to Wally, there are three basic types of pre-approval: pre-qualification, conditional loan approval, or my personal favorite: the TBD pre-approval.

With a pre-qualification, the lender may offer a letter that tentatively asserts you’re qualified to buy a home. This isn’t very concrete, however, and won’t garner much faith when presented to a seller.

“Getting a TBD approval is a great way to solidify your chances as a buyer.”

A conditional loan approval, on the other hand, involves turning in your paperwork and having lenders produce a letter stating that they’ve verified your capacity to secure a loan. This option is better than the first, but still not as strong as the TBD approval.

TBD approvals put you through the underwriting process up front, so that you can (potentially) submit a non-contingent offer when you find the perfect home. A TBD approval could even help you beat out a cash offer.

All in all, getting a TBD approval is a great way to solidify your chances as a buyer.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.