So, you’re ready to buy a home. Before you can begin looking in earnest, however, you need to get prequalified. Prequalification is what 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.
Reasons to get 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.
Preapproved vs Prequalified
Being prequalified means there’s been a review of your income, credit and debt information; you become preapproved after all your information is “verified” and “approved.” Preapproval is a step above prequalification, and it takes a little longer to obtain, but the higher level of approval you have, the more power you have at the bargaining table because sellers know your offer will likely close without trouble or delay. When you’re ready to buy, you’ll also have less paperwork and your loan will close faster.
What is PrimeLending's Float-Down Option?
PrimeLending’s Float-Down Option is a way to get a lower interest rate if the rates go down after yours is locked. 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 simple and flexible way to avoid having to go back to square one.
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.