Mort­gage banker guar­an­tees a 21- day clos­ing on Bethel home

Connecticut Post (Sunday) - - Real Estate - Dave Stam­bone Dave Stam­bone, To­tal Mort­gage Ser­vices, 203- 240- 9611, [email protected] dav­es­tam­bone. com

Mort­gage banker: Dave Stam­bone

Home value: $ 365,500

Prop­erty type: Sin­gle- fam­ily pur­chase in Bethel

Loan amount: $ 328,950

Loan terms: Con­ven­tional, 30- year fixed at 4.75 per­cent, no points.

Back­story: A buyer lost a bid­ding war on a po­ten­tial home pur­chase. He was pre- ap­proved by his bank and had been look­ing for the per­fect home with his Real­tor for months.

To his dis­may, he lost the bid­ding war to a cash of­fer less than his. The seller was at­tracted to the cer­tainty of a cash buyer, a timely clos­ing and not tak­ing the chance a buyer’s mort­gage may be de­clined.

Con­se­quently, most banks and lenders will sim­ply screen a buyer to en­sure their cred­i­bil­ity by preap­prov­ing them. The pur­pose of be­com­ing pre- ap­proved is to de­ter­mine an in­di­vid­ual’s max­i­mum buy­ing power in or­der to pur­chase a home.

This is a nec­es­sary piece that must be done prior to view­ing homes with a real es­tate agent. Ad­di­tion­ally, a pre- ap­proval let­ter from a mort­gage pro­fes­sional is re­quired by the real es­tate agent list­ing a home when ac­cept­ing of­fers on be­half of a seller.

While the let­ter lim­its the risk of a deal fall­ing through and in­creases a buyer’s cred­i­bil­ity, it does not guar­an­tee fi­nanc­ing.

Apre- ap­proval only pro­vides a buyer with an idea of how much fi­nanc­ing he may be ap­proved for and is not a com­mit­ment to lend. It uses un­ver­i­fied fi­nan­cial doc­u­men­ta­tion, may use an un­ver­i­fied credit score, does not give an in- ter­est rate quote or re­duce the over­all loan process.

The buyer’s Real­tor highly rec­om­mended that he have a con­ver­sa­tion with Stam­bone to pre­vent the sit­u­a­tion from hap­pen­ing again. Al­though the buyer did not have the liq­uid funds to com­pete with cash; Stam­bone and his bank of­fered an at­trac­tive al­ter­na­tive called aGreen Light ap­proval.

Un­like a pre- ap­proval, the Green Light ap­proval tells a buyer ex­actly how much fi­nanc­ing they may be ap­proved for, ver­i­fies in­come, as­sets, and debts ahead of time, uses a buyer’s real credit score and can pro­vide a lock­able in­ter­est rate be­fore shop­ping for a home.

Most im­por­tantly, the Green Light pro­gram cuts the mort­gage process down to 21 days and guar­an­tees fi­nanc­ing only sub­ject to an ap­praisal and ti­tle work from a buyer’s at­tor­ney.

Stam­bone met with the buyer and gen­er­ated the Green Light loan ap­proval within 24 hours.

The buyer en­tered the mar­ket days later armed with the ap­proval, which set him apart from com­pet­ing buy­ers. Nat­u­rally, a mul­ti­ple of­fer sit­u­a­tion oc­curred once again. The buyer fi­nally ob­tained an ac­cepted of­fer based on the cred­i­bil­ity of hav­ing a loan com­mit­ment com­pared to a pre- ap­proval and closed 21 days later.

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