The Benefits of Getting Prequalified for a Home Mortgage Loan
When you’re ready to buy a home, the first step is getting prequalified – before you start looking for a home. Prequalification starts the loan process. You’ll provide information on your credit, income, assets and debts so PrimeLending can give you an estimate of the size of a loan you can afford. There’s never a charge to get prequalified with PrimeLending.
When you’re prequalified:
- You’ll save time by only looking at houses within your price range.
- You can make an offer on the same day you find the perfect home.
- The seller can expect fewer delays with your offer, making your offer more attractive.
- Sellers are likely to prefer your offer over a buyer who is not prequalified, giving you negotiating power.
- A real estate agent will move quicker knowing you’re prequalified and ready to buy.
What’s the difference between Prequalification and Conditional Approval?
Prequalification is based on a "review" of your income, credit and debt information. A conditional approval is provided after all your information is “verified” and “approved.” It takes a little longer to obtain, but it’s a step better than prequalification. The highest level of approval you can have, it gives you even greater bargaining power because sellers know your offer will likely close without trouble or delay. When you’re ready to buy, you’ll have less paperwork and your loan will close faster.
What is PrimeLending's Float Down Option?
When you get approved for a mortgage loan, the terms are based on a specific, agreed-upon interest rate. In most approved loan agreements, this rate is “locked,” meaning it won’t change even if the market rates go up or down. If they go down, which could save you money, you have the right to not accept the loan. But that can mean starting over with another lender, potentially losing the house you made an offer on.
PrimeLending’s Float Down Option is a way to get a lower interest rate if the rates go lower after you lock your rate. There’s a fee attached to this option, but it can be a good idea if you plan to get prequalified and not make a purchase right away.
Protecting Your Interest Rate.
Ready to get prequalified or conditionally approved? Think the float down option will work for you? To get started contact us online or call 800-317-7463.