THE PRINCETON PRE-COMMITMENT: A STEP BEYOND A PRE-APPROVAL


THE PROBLEM WITH THE CURRENT MARKET


The housing market is incredibly competitive and can be frustrating in the best of times, but why is the market still so competitive even as the market slows?


Supply and Demand in Action

Home prices have skyrocketed since 2020. One of the causes of this is that housing inventory is at historic lows. Because of the lack of houses available, demand has remained high even with the rise in rates.


Out of Town Offers


The wide adoption of work from home that was brought on by the Covid-19 lockdowns has added to the more competitive environment. Not only are workers able to live anywhere, but you have many who are making “big city” money disrupting smaller real estate markets.


We have also begun to see a resurgence in overseas buyers reenter the market.


Cash is King

One of the side effects of prices (and rates) going up is that many home buyers are finding themselves in competition with buyers who have more options when it comes to buying a home. Specifically, buyers who have the ability to offer all cash.


HOW CAN YOU COMPETE IN A COMPETITIVE MARKET


While the market might be competitive, that does not mean that more traditional buyers should just give up. While being able to offer all cash is a competitive advantage (and a luxury!) mortgage applications are still being processed and homes are still being financed.


So how are these traditional offers competing?


The reason that a seller might choose to accept a cash offer is obvious – they know for a fact that they are going to get paid. There is no worrying that financing is going to fall through, sending them back to the market.


At Princeton Mortgage we are countering this concern with something known as Upfront Underwriting. We call it our Princeton Pre-Commitment.


WHAT IS THE PRINCETON PRE-COMMITMENT?

The Princeton Pre-Commitment is a pre-approval that has already been through underwriting. Therefore, instead of a price range for which you qualify, your Loan Originator gives you an exact dollar amount for which you have been conditionally approved.


PRE-COMMITMENT PROCESS

Step 1: Borrower submits application along with qualifying documents.

Step 2: File is reviewed by Loan Originator and sent to Underwriting on the same day as application.

Step 3: The Princeton Pre-Commitment is typically issued 24-hrs from time of your submission

Note: Loan Originator can issue a Pre-Qualification during the 24hrs turn time if the Agent needs to submit offer.


HIGHLIGHTS OF THE PRINCETON PRE-COMMITMENT

  • Have your buyer underwritten BEFORE you take them to show houses. (This is the Gold Standard!)

  • Faster Closing times! Princeton Mortgage has close times that are up to 50% faster than industry average.

  • In multiple offer situations the Princeton Pre-Commitment can complete with cash while putting Pre-Qualification offers in the backseat.

  • Loan Types: Conventional, VA, FHA, USDA

  • PEACE & Certainty given to everyone in the transaction.


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