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How FastTrack Can Give You a Buying Edge in a Competitive Market

California contract purchases have changed. With new sections, including underwriting, there is a need for fast mortgage approval.

With FastTrack, we can accelerate the pre-qualification process so you can make purchase offers with greater confidence.

FastTrack and California Purchases

Changes to the California Contracts

In many states, agents and property buyers count on lawyers to complete purchase transactions. The process can be complicated, so attorneys are used to navigate the numerous details and reach a successful conclusion: the purchase of a property.

In California, however, the process is a little different. (Are you surprised that things are different in California?) In our state, residential real estate purchases are completed through a series of detailed forms, which are created, maintained, and provided by the California Association of Realtors, commonly known as “CAR.” CAR members have access to all of these forms.

CAR uses a team of attorneys to create and maintain these forms. Because these forms layout, in detail, the purchase process, which means the transactions can stay in the hands of real estate agents, escrow professionals, and title representatives.

Essentially, your real estate agent is the beneficiary of all this work. Instead of requiring an attorney to complete the process, they can turn to the forms and go through the purchase process in a step-by-step manner. These forms make all the details clear and universal; they attempt to make the transaction smooth and seamless, allowing for fewer misunderstanding and greater consistency between one transaction and another.

There are many forms that are maintained and overseen by CAR. The most commonly used form, by far, is the Residential Purchase Agreement, or “RPA”.

CAR recently unveiled a thorough overhaul of their forms, including changes to the Residential Purchase Agreement.

Some things, of course, have stayed the same. The transaction process is largely left unchanged, as you still need to use aspects like the initial deposit, loan application, setting a final closing date, and all the other small details. Details like the active contingency and optional liquidated damages have also remained essentially unchanged. Mandatory mediation, which helps avoid potential costs and delays, also remains in place.

Other aspects have changed. The format, for one, as been adjusted to meet current needs. All contract negotiation points are now moved to the very beginning of the contract document. They are laid out in an easy to read format, which should make working through the forms much easier.

There is also no separate summary form needed to quickly find relevant terms. The grid is part of the contract form, increasing the chances that it will be viewed in detail by users.

Thanks to the changes, there will be no fumbling around to find negotiated terms, which should reduce the chances of missing something important. There will also be less struggling to find detailed paragraph terms, as a quick reference grid makes it easier to work through the document.

Overall, the document has been reorganized to the paragraphs are logically grouped together. First is the contingencies and disclosures and second is the liquidated damages and arbitration information.

FastTrack Can Help Speed the Process

FastTrack can increase the chances of having your purchase offer accepted.

With our help, you can use the FastTrack program, which is designed to significantly speed the overall pre-qualification process. With this program, you can show sellers that you are ready to purchase quickly, and your purchase offer won’t be tied up in complex details of mortgage approval. Things will go much faster, which will boost your chances of having your offer accepted.

The time it takes to complete your pre-qualification is extremely quick. You’ll be able to eliminate many of the time-consuming steps that are usually required to complete this extensive process. The phases can either be skipped or expedited, depending on your situation. 

This program holds many unique benefits. One of the most important is the chance to submit purchase transactions to underwriting for full credit approval before you (the borrower and buyer) select a specific property. So before you go shopping, you can be reach a credit approval. Currently, only conventional and FHA purchase loans underwritten by our team are eligible for the program.

Using FastTrack increases purchasing power in a highly competitive market like San Diego. It decreases cycle time from qualification to funding, and there is greater peace of mind for all parties, as the seller knows they are working with a fully qualified borrower.

If you are looking to purchase a large or luxurious home, you may need a jumbo loan. Fortunately, you can still take advantage of FastTrack and use a jumbo loan. This means you can get a large loan that is beyond the conforming loan limits and still enjoy the benefits of the FastTrack program.

FastTrack loans are submitted directly to the loan originator, which speeds the process. This program can get you “underwritten” instead of just prequalified. The difference between these is that when you are underwritten you become more attractive to sellers, as there is less chance for your offer to fall short. Prequalified essentially means that someone has viewed your file and provided a letter saying that you would be approved if all the information provided turns out to be accurate. Having an actual underwriter’s approval holds more weight.

Put FastTrack to Work on Your Next Offer

If you want to learn more about the FastTrack program and how it can benefit your property search, contact our team today. We’ll help you get the information and resources needed so you can make the right decision!

CONTACT SAN DIEGO PURCHASE LOANS TODAY!