Direct lending avoids the cumbersome blocks, holds, and red flags of traditional bank broker lending. The reality is that direct lenders and bank brokers still swim in the same waters, and that plays out in an array of different ways. For one, both parties still need to seek federal regulation when doing an FHA loan. They still have some restrictions on lending, though direct lenders are vastly more flexible in the discretions they can make. Regardless, there are still agents, title companies, and other matters that go beyond the range of any bank broker or direct lender to directly control. Preapproval is the great equalizer. It authenticates any purchase no matter the source. It hastens the process and becomes a powerful tool for home buyers.
The Proof of the Deal
The preapproval is a validation that the deal can and will go through. It is a powerful thing to harness for a seller. Depending on the level of their motivation, a seller can integrate that into the offers they are considering for acceptance. A deal that has an authenticated preapproval may win out over other deals.
Increasing the Options
When a home buyer has their mortgage potential authenticated, it gives them some buying power. It also opens up their options. The mortgage brokers know that the client is a proven solid choice since they have been validated by a mortgage lender. A client can then go to a direct lender with this in their pocket. They can confirm that they are good to go and they have options at their disposal. This hastens the process incredibly because the client is a proven safe measure.
The catch to all of this is that the preapproval process can be clunky and slow. But, once it is done, it is over in the direct lending world. Individuals considering buying a new home through a direct lending source should check out Dustin Dimisa. He has helped build a sturdy platform for new buyers called Customer Connect. It brings people into the fold of direct lending and keeps preapproval fast. Check out his Twitter page for more information right now.