You’re ready to take the next step toward homeownership, but want to stand out from the crowd of other buyers when it comes time to put your offer in on the home you’ve chosen. Your dream of homeownership is important to us at American Pacific Mortgage and we’re here to help set you apart from the competition with our Keys On Time loan program.
According to Realtor Mag, one thing homebuyers can do is make their bid competitive. This doesn’t just mean offering the highest bid, but rather offering the an attractive bid. That can be partly accomplished by removing restrictions, removing financing contingencies or being flexible with dates. One of the ways you can set yourself apart is with Keys on Time, one of our specialty home loan programs.
Our Keys on Time program can help you in the following ways:
Get pre-approved so that you can shop for a home with confidence knowing what you can afford and that you have preliminary approved financing.
Waive your loan contingency when you make your purchase offer because you have been fully pre-approved, putting you at the front of the line.
Let the seller know they can be rest assured that your offer will close on or before the close of escrow, giving them confidence that they won’t have to worry about unnecessary delays when they choose your offer.
A competitive market requires ultra-competitive offers -- with APM’s Keys on Time program, you can present your strongest offer without a loan contingency (just an appraisal contingency). This combined with the ability to present sellers with a guarantee that you will close escrow on time will make your offer more attractive to sellers and better able to compete against all-cash or higher offers.
First, there is a Full KOT program and a Lite KOT program.
Full Keys on Time™ Program
The Full KOT program comes with the $2,000* commitment from APM, but buyers must begin working with APM before they make an offer on a house. Buyers who partner with APM before they pick out a home can receive a conditional loan approval, which means that they’ll have a fully underwritten approval before they even put an offer in on a house. This conditional approval covers everything except the property and appraisal, putting your offer in a stronger position.
This is a perfect way to get a leg up with sellers, as they’ll know your offer is backed by a fully underwritten approval. That, combined with our KOT commitment to close on time, provides the type of security sellers could only get through cash offers—until now!
Lite Keys on Time Program
Lite KOT provides the same commitment as the full version, but it comes with a $1,000 guarantee fee if the loan doesn’t close on time. This “lite” version means that the loan wasn’t fully underwritten prior to the offer being made. It’s the same commitment, but it happens a little later in the process.
Other KOT Considerations
If you want to get your offer accepted with APM’s Keys on Time, you’ll also want to understand the program’s basics, including the following:*
Your mortgage must be a purchase transaction
Your closing date must be scheduled no sooner than 28 calendar days from the time we receive formal notice of your Intent to Proceed with the transaction (30 calendar days on a VA loan)
The loan must be for less than $2 million
The loan cannot be for a bank-owned property or a home purchased through a short sale
As with most things in life—and all things mortgage-related—accuracy and timeliness are extremely important when you’re trying to get your loan closed . . . any delays by the buyer, a third party, or the seller can void the guarantee, as can inaccurate or unverifiable information on the application.
To find out more, or to get started - contact us today!