It’s a competitive market out there, but did you know there are things you can do to increase the chances your offer will be accepted? We’re not talking about the standard strategies like improving your credit, paying off debt, applying for pre-approval.
We’re talking about programs like APM’s Keys on Time™ (KOT).
The 411 on KOT
APM’s Keys on Time™ program sets you apart from other bidders competing for your dream house. Why? Because this program provides a commitment to the seller that you’ll close on time, making a KOT offer as good as cash. What’s more, buyers can actually assign the commitment to the seller, giving them the payout if the loan doesn’t close on time. Imagine getting that type of commitment with a buyer’s offer!
Let’s face it. A commitment doesn’t mean much if it’s not backed up, so APM puts its own money on the line to ensure that you close in a timely manner. We will put up to $2,000* back in your pocket if you qualify for our KOT program and fail to close on time. That’s how confident we are in your application and in our ability to get you across the finish line.
It’s simple. The first step is to CONNECT with an advisor and apply for your loan—once you apply and lock, we’ll take it from there. The next step is to COMPLETE the loan. Once you have an accepted offer, you do your part, and we’ll do ours. Your timely responses are required in order to close on time and keep the guarantee in place. The last step is to CELEBRATE! We’ll meet your closing date or you or your seller gets paid. It’s that simple.
Keys on Time™ is an amazing program for anyone who’s looking to get a leg up on the competition . . . so, essentially, everyone. There are some things to keep in mind, however, if you want to get your offer accepted with APM’s Keys on Time.™
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.
TBD Loan Approval
TBD loan approval—short for “to be determined”—is for those borrowers who know they’re buying a home soon but haven’t begun the house-hunting process or made an offer yet. Like a traditional underwriting process when you’re closing on a home loan, the TBD program includes a fully underwritten approval. Not every lender offers this type of approval early in the lending process.
One of the benefits of this is that it lets you address any issues that may hold up your loan process before you find your dream home and make an offer. The last thing you want to do is settle on the perfect house, put in an offer, and then watch things fall apart if the loan doesn’t go through.
A TBD loan approval helps prevent this from happening. You’re taking care of all the steps up front—before you ever even make an offer! Like a pre-approval, you’ll know exactly what your loan budget is, giving you confidence in your homebuying journey.
Sellers, meanwhile, love the peace of mind they can take from TBD loan approvals since they’re backed by full underwritten approval. They’ll know you mean business, that your offer’s strong, and that you can follow through on your promises. What’s more, if you pair a TBD approval with our Keys on Time™ program, you can assign the commitment to the seller—giving them the payout if we don’t close on time! Talk about sweetening the pot when you’re putting your offer together. You can’t ask for more than that, and in a market where many houses receive multiple bids, it can mean the difference between winning and losing your dream home.
Gain your competitive edge with APM’s Keys on Time™ and TBD loan approval programs. Go here to find an APM Loan Advisor near you and get started.
*Program not available in Oregon. For full details of the program, visit www.apmortgage.com/kot.or ask your loan advisor for a copy.
