What is a TBD Approval? TBD (To Be Determined) approvals are for buyers obtaining financing who get their loan file underwritten to the furthest extent possible without having yet identified a property. With a TBD, income, assets, credit, etc are examined leaving only the property itself to be determined. Once the purchase contract is created, the remaining needed items to fund the loan are minimized; appraisal, title report, etc.
Who loves them? Everyone. Real estate agents know they have a solid buyer before going out looking at homes and writing up offers. A deal falling out because of a pay stub or a strange deposit on a bank statement 20 days into escrow is a huge time waste and emotional drain.
Buyers have more confidence with their offers knowing that they 'check out' with the underwriter before pulling out the credit card for an appraisal.
Sellers have less fall out when dealing with a TBD approved buyer. TBD buyers are held in esteem somewhere between buyers who were just 'standard pre-qualled' and all 'cash buyers.'
Basically, a lot of potential unknowns are eliminated, and who doesn't love that?
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