In 1937 under one of many initiatives set forth by the Roosevelt administration, The Housing Act of 1937 unwittingly created the most robust housing system in the world. Even withstanding the Great Economic Recession of 2007 (albeit publicly funded). This Act is the Great Grandfather of our lending environment today. Why the history? Simple; if you understand (as a consumer) the nature of the loan process you can educate yourself to use the loan process and its features to make stronger offers without offering more money. The most significant tool you that have as a buyer is to show a seller you can close fast and reliably, regardless of the loan.
LOCK and SHOP
For example, at Skyline Home Loans (a federally regulated Mortgage Bank (NMLS# 12072), you can have your loan approved before you make an offer. You can come in with a NO Loan Contingency Offer.
The spirit of LOCK and SHOP is to help you as a buyer compete with All- Cash Buyers and to eliminate similarly priced offers that have a loan contingency. By getting your loan approved ahead of time you eliminate the stress and disappointment that comes with losing the house you really want. You also save money by closing faster and locking in your rate for up to 60 days, ensuring that you avoid any rate hikes.