Levels of Qualification
Not All Approvals Are Created Equal
Is there really a difference between a pre-qualification, a pre-approval and a Platinum Approval? Absolutely! Let’s take a moment to explore the differences.
This is the most basic form of approval and in all transparency, it’s not really an approval at all. Rather, a pre-qualification typically amounts to no more than a peripheral conversation between the buyer and a lender to estimate the amount a buyer can borrow. It does not involve a review of income and asset documentation and does not involve a credit report being pulled. Most sellers would scoff at such an “approval” if a buyer made an offer on their property with this level of commitment.
The pre-approval has become the gold standard of the industry. The process includes a lender’s evaluation of the buyer’s income, assets and credit. Through careful examination of this info, the lender will produce a conditional loan approval, Typically a buyer will need a loan contingency when making an offer so that they can “get your ducks in a row” prior to putting their deposit on the line with the seller.
Created to combat the recent lack of inventory and the resulting stiff competition facing many buyers, o2 Mortgage offers the Platinum Approval, which not only an in-person pre-approval takes place to guide clients through options and determine their level of affordability, but also consists of having their file put in front of an underwriter as if the buyer were already in contract. This allows buyers to confidently make offers without a loan contingency. This makes their offers more competitive and enables them to get into contract on the house they fall in love with.
Purchasing a property can be complicated. We have designed our approach to loans so that we can be your partner in the process. When you are ready to make the leap into the homeownership market, let us help you with your approval.
David Setti is the branch manager at O2 Mortgage. Throughout his nearly 20 years in the residential lending space, Dave has been a leader within his company and the industry as a whole. He has been nationally recognized as a top loan originator by Scotsman Guide multiple times in past years. He spends his time now coaching other loan agents on how to be top producers and still enjoys guiding clients through the home loan process.
Raised in Southern California, Dave moved to the Bay Area in the early 90’s to pursue a bachelor’s degree from Santa Clara University. After graduation, Dave found himself in a director’s role in the corporate interiors industry. Following several successful years in the industry, he changed directions to pursue his passion for finance.
Dave has helped thousands of clients discover the joys of homeownership throughout his career. With a focus on affordability over merely qualification, as well as providing a thorough education to his clients on the process of lending, he has helped make the process of securing a mortgage a positive experience.
For the last 5+ years, Dave has served on the board of directors with PACE (Pacific Autism Center for Education), a nonprofit organization, providing high quality programs for individuals with autism and associated developmental disabilities.
He lives in San Jose with his wife and son. In his free time he loves to cook and can often be found at the Shark Tank, rooting on his hometown team to win the elusive Stanley Cup.