Waiving the Financing Contingency
Central Coast Lending allows buyers to obtain pre-approval for any home purchase loan.
Pre-approval is different than pre-qualification. The pre-qualification is an initial, surface look at the borrower’s finances to determine the general price range that the borrower can afford.
The pre-approval is the end product of the loan application process, after the borrower has submitted all proof of income, assets, liabilities, and received “underwriting” approval from the lender.
At this point, the lender has granted the borrower “pre-approval” for a certain loan amount, say $350,000. This process can occur absent of identifying a specific property to purchase.
Pre-approved buyers can then waive the “financing contingency” portion of the process and make their offer more competitive. And because their financing is already preapproved, buyers may confidently make offers with shorter close of escrow timeframes, say 17 or 21 days versus the typical 30 or 45 days.