So, you’re ready to buy a home. Before you can begin looking in earnest, however, you need to get qualified. Qualification 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 qualified with PrimeLending.

• 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 qualified, giving you negotiating power.
• A real estate agent will move quicker knowing you’re qualified and ready to buy.

A qualification is an estimate of what you qualify for based on the information you provide, an approval means an underwriter has reviewed your income, credit, and debt information; you become approved after all your information is “verified” and approved.”  Approval is a step above qualification, 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.

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. That protects your rate from rising, but what if you learn that rates went down? At PrimeLending, we allow you to make a request to float down* your rate one-time within twenty days of your closing if there has been an adequate market improvement.

The Float Down option gives you the ability to lock in, meaning your rate won’t rise, and also rest easy knowing that if you learn there has been a significant drop in interest rates, you have the option to request to reduce your rate with PrimeLending.

The idea of putting 20% down on a home can make homeownership feel unrealistic, but the good news is that you are not required to put 20% down at closing. That said, it may still make sense to pay 20% of the home’s purchase price if you can. Before you decide, you should weigh the pros and cons of making a large down payment, to see what is not only feasible for you, but what will work best with your finances and goals.