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When it comes to mortgage approvals, having a mortgage approval that has been fully vetted gives an important boost of confidence to buyers, sellers and their agents that the transaction can move forward. Unfortunately, not all mortgage approvals mean the same thing.

To help with this, Quicken Loans® offers a Verified ApprovalSM Letter (VAL). We’ll get into the advantages for agents of buyers and sellers’ agents later, but first let’s talk about what it is and what sets it apart.

Prequalified Approval Vs. Verified ApprovalSM

When lenders give a mortgage approval that specifies how much someone can afford, it generally falls into one of two categories.

The easiest thing to get is a Prequalified Approval, where credit is checked and a client gives estimates of the income they have available for the calculation of debt-to-income ratio (DTI). They’re also asked to estimate the amount of assets they have for down payment, closing costs and any necessary reserves.

The problem with any sort of Prequalified Approval that doesn’t actually document income and assets is that it’s just an estimate, so until actual underwriting is done, it doesn’t really mean anything.

A seller’s real estate agent is much more likely to take an offer seriously if they know a lender has done their due diligence. In order to give your client the best possible chance of having their offer accepted, it’s necessary to have them take the next step and get a Verified ApprovalSM.

In a Verified ApprovalSM, we again start by verifying your client’s median FICO® Score. But then we work with them to verify income and asset data. As a buyer’s agent, you can be confident that a buyer is likely ready to buy a home and that the number shown on that piece of paper is real. For seller’s agents, accurate approvals get you closer to closing.

Let’s take a deeper look at the advantages for both buyer’s and seller’s agents next.

Buyer’s Agents

As a buyer’s agent, you likely have many concerns to think about when signing on clients. When your client gets a VAL, how much they can afford and negotiating power don’t have to be among them.

When a client goes through the Verified Approval SM process, you know exactly what they can afford, and the absolute highest price point they can offer. That way, you can narrow homes down to their price range and have an idea of a topline in negotiations.

You can go in with confidence that a VAL will get your buyer a step closer to closing. Because income and assets are already verified, this will save time in the underwriting process as well. While nothing is guaranteed until the keys are exchanged, you can be confident that the deal won’t fall through from a financial standpoint.

Seller’s Agents

As a representative of a seller, while you want to get the most money possible for your client, you also value certainty. From that standpoint, cash is best, but you don’t always get those offers. A Verified Approval SM is the next best thing. Because it’s an accurate approval that’s gone through underwriting, you can feel confident when you get one that you’ve gotten close to the closing.

As America’s largest mortgage lender1, we stand behind our Verified Approval SM, so you can go to the closing table with confidence. We’ve looked at the financials, and the buyer can afford what they say they can. It’s an added sense of security. Any real estate transaction is stressful, but at least you know you can be certain in the offer before moving forward.

With a Verified Approval SM, both buyers and sellers can get to the closing table with confidence. For even more information for real estate agents, visit our Agent Relations page.

1 Based on Quicken Loans data in comparison to public data records.

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