Buying Your First Home

What’s the difference between pre-qualification, pre-approval and the CLS Ultimate Approval?

A pre-qualification is typically after an application has been taken and credit has been ran. If the credit and information given by the borrower qualifies, a pre-qualification letter may be prepared. Many times, the income and assets have not yet been reviewed and verified by the lender. This is not CLS’s preferred qualification approach.*

At pre-approval, an application and qualified credit has been completed. Income and assets have been received and reviewed for qualification. At this time, we will run AUS (automated underwriting system) for approval. There are two systems: one is Fannie Mae’s DU (Desktop Underwriter — sometimes called Desktop Originator) and the other one is Freddie Mac’s LP (Loan Prospector). CLS offers a Keys on Time Guarantee (GREG – link to the flyer). This program guarantees that the loan will close on or before the close of escrow, if not sooner. If the loan does not meet the close of escrow, a credit of $895 will be applied to the buyer at the close. All of this is part of the pre-approval at CLS Financial.*

The CLS Ultimate Approval Package helps get your offer accepted faster. The biggest benefit to this type of approval is a full bank underwritten approval before a property is found; helping the offer to stand out from the competition. An application and qualifying credit have been completed; income and assets have been received and reviewed with an AUS approval. This allows the ability to submit an offer with no loan contingency to compete with cash offers. You can shop with confidence knowing your purchase power and close your escrow in a shorter period of time. Take advantage of the option to lock in your rate before you find your property with the CLS SecureLock (GREG – link to the flyer) program. This program allows a borrower to lock their interest rate even BEFORE a property has been identified or built. This provides peace of mind in a rising rate environment. If the rates drop before closing, then you can take advantage and reduce the locked rate. CLS prepares a professional digital book which includes full loan approval, proof of credit, estimated loan worksheet with proof of funds with the Keys on Time (GREG- Link to the flyer) certificate and SecureLock confirmation (if applicable). Your Close Loan Specialist will contact the listing agent to review the package in detail and endorse the strength of your qualification.**

*Qualified and reviewed by licensed NMLS loan officer.

**Qualified and reviewed by a certified bank underwriter.