Since then, Priority Approval has helped countless homebuyers and their agents make offers that stand out from the rest and get to the closing table faster than ever. So what exactly is it and how do we accomplish it?

Here are a few FAQs about the Priority Approval Program:

1. What is the Priority Approval Program?

A Priority Approval is a fully underwritten credit approval from Southern Trust Mortgage designed to get you a decision in 24 hours or less so that you can make a competitive, strong offer and guarantee a quick closing.

2. Who is a good candidate for Priority Approval?

The good news is that just about anyone who is ready to shop for a home is a good candidate! It doesn’t matter if you are in the middle of your home search, have found the perfect home, or haven’t even begun the process yet…Priority Approval simply expedites the credit approval part of the mortgage loan process so you can confidently look at houses and make offers with a fully underwritten approval letter stating the specific amount you qualify for.

3. How is this a game-changer for the home loan process?

The letter that is given to the Real Estate agent or borrower is a true credit approval, not a pre-qualification or pre-approval. It puts the ability to submit the loan directly to the underwriter in your Loan Officers hands. This means that you don’t have to wait for the “back and forth” that can happen during the processing stage of your loan while still waiting for your approval letter. Your loan officer will simply communicate what they need from you, and once you get it to them, you will have a fully underwritten decision in one day or less!

For Real Estate Agents, this means you can take your homebuyer shopping and rest easy knowing they are already approved. Also, when they go to write the contract there is no doubt that the borrower will qualify.

All parties involved are assured upfront during the first 24 hours of the loan process, rather than having to wait 30 days to make sure it’s a done deal.

4. How is Priority Approval different from a traditional pre-approval letter?

Getting pre-approved by a mortgage lender means that you have completed the loan application and have supplied initial financial and employment documentation. The mortgage company will check your credit, review your documentation provided and issue a commitment letter with the amount you are approved for. This is different from Priority Approval because a traditional pre-approval is conditional on your file still being underwritten. In essence, you really aren’t actually approved yet with a pre-approval letter. There is still the uncertainty of any problems that can arise once your loan goes to the underwriter. With Priority Approval, your file has been expedited straight to the Underwriter and they have issued their decision. A Priority Approval letter states that you are already fully credit approved and good to go – which means all that is left is finding the perfect home!

5. How do I get started?

Starting off your home loan process with a Priority Approval is as easy as giving one of our experienced Loan Officers a call. As previously noted, it doesn’t matter what stage of the home buying process you are in. Your Loan Officer will collect a few basics about you and your situation and have you fill out a loan application. Once your application has been completed, the only documentation you will need to provide to your Loan Officer is:

• your most current pay stubs
• your most current bank statements
• your previous year’s tax returns (self-employed borrowers only)

That’s it!

6. How long will it take for me to receive my Priority Approval?

The time from fully completed application and initial documentation to full credit approval is less than one business day!

Recap : Key Advantages Of Priority Approval

Testimonials From The Southern Trust Team

“In my 18 years of being in the business, 
I’ve never closed a loan this fast”

– Rick Hennen, Branch Manager

“After closing the loan in just 12 business days,
this is how I’ll roll from now on.”

– Carol Hall, Loan Officer

“From ‘Docs Out’ to ‘Clear To Close’ in only 14 business days…
This is absolutely unreal!”

– Ryan Lowry, Branch Manager

What This Means for You!

We know that the mortgage world isn’t always the easiest thing to understand. However, this is one change you want to keep an eye on!

For 2022, conforming loan limits increased by a total of $98,950 from last year! This means that qualified borrowers will now be able to take out larger loans backed by the government-sponsored enterprises, Fannie Mae and Freddie Mac, the Federal Housing Administration, and Department of Veterans Affairs.

This is great news, as conforming loan limits impact how much home buyers can borrow before having to switch to a jumbo loan, which requires a higher credit score, down payment, and interest rates.

In most of the United States, single-family homebuyers will now be able to borrow up to these limits:

Conventional loan – $647,200
FHA loan – $420,680
VA loan – No loan limit for Veterans with full entitlement

Conventional Loan Limits for 2022

Conventional loans are not insured or backed by a government agency and typically come with a fixed rate and term. They are easier to obtain, and only available, for those borrowers with good credit scores and that have cash readily available for a down payment.

More than 60% of home purchase loans are conventional mortgages, making these loans the most common for homebuyers. View the chart below to get an idea of the CLL’s in your area!

*Note that Alaska, Hawaii, Guam, and the U.S. Virgin Islands have their own set of loan regulations and will have a baseline limit of $970,800 on one-unit properties for 2022.

FHA Loan Limits for 2022

FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. The FHA insures your loan, making the loan less risky for your lender, which allows the lender to offer you better terms.

View the chart below to get an idea of the FHA Loan Limits in your area!

*Note that Alaska, Hawaii, Guam, and the U.S. Virgin Islands have their own limits set higher. This is due to the cost of construction. The 2022 limits in these areas are $1,456,200 for one-units; $1,864,575 for two-units; $2,253,700 for three-units; and $2,800,900 for four-units.

VA Loan Limits

A VA loan is insured by the Department of Veterans Affairs, meaning the VA will guarantee part of the loan, enabling the lender to offer significantly better-than-average terms as a reward for the service veterans have provided to America.

The Department of Veteran Affairs removed the maximum loan amount it would grant its borrowers in 2020 following the signing of the Blue Water Navy Vietnam Veterans Act. While there is no maximum on how much you can borrow, VA loan limits help determine how much you can borrow without needing to factor in a down payment.

The standard VA loan limit in 2022 is $647,200 for most U.S. counties.

Note that VA loan limits no longer apply to qualified Veterans with their full VA Loan entitlement. Veterans with reduced VA Loan entitlement must still follow VA loan limits.

Eligible borrowers for VA loans include veterans, active-duty service members, National Guard members, reservists, and surviving spouses.

VA loans also have an upfront funding fee, which most borrowers will roll into the mortgage closing costs. Be sure to ask about this number when going through the VA Loan process!

What Are Loan Limits and Why Do They Increase?

A conforming loan limit is the dollar cap on the size of a mortgage loan that Freddie Mac and Fannie Mae are willing to buy or guarantee.

Following the mortgage crisis of 2008, The Housing and Economic Recovery Act was established to prevent such issues from arising again. According to the FHFA, The Housing and Economic Recovery Act requires conforming loan limits to be adjusted each year based on the average U.S. home price.

The FHFA’s House Price Index shot up 18.05% annually in the third quarter of 2021 so the conforming loan limit increased by the same amount.

This is a positive development for consumers, as it allows lenders like us to offer our homebuyers more flexible down payment and lending options for larger loan amounts.