As a society, nobody likes to wait. Very few of us have the patience to wait, which is why Disney World offers the “Fast Pass” and the NFL made the fast line concession stand for season ticket holders. These monoliths know how to manage our waiting expectations. Banks also jumped to this conclusion and later the bandwagon with offering “prequalification.” Once prospective homeowners discovered the type of home that they couldn’t live without, they wanted to “Fast Pass” their way to an answer.
Prequalification is a process in which prospective homeowners give their financial picture to their mortgage lenders. It is a non-binding process that provides preliminary information regarding income, debts, assets and credit to mortgage lender. After evaluating this information, a lender can give you an idea of the size of the mortgage for which you quality.
I get it. I don’t have to wait. What else does prequalification provide? Mainly, a peace of mind and a financial snapshot of they type of home you will comfortably be able to own.
How do I go about getting prequalified? A bank or lending institution helps you figure out the type of monthly payment that you can fit in your budget and the loan amount you will qualify for. The institution calculates this by calculating your borrowing potential. They look at your job, how much money you have available for a down payment, debt, and income. Once you qualify, the bank presents a Prequalification letter (realtors often refer to this a a “pre-qual). This is stamp of approval that says the bank will find the right loan to meet your needs and you have a green light for a mortgage loan for up to a specific amount.
There’s a Marquee Value in being prequalified. Once you locate the house of your dreams, you can put together an offer, and your pre-qualification will do several things. You’ll know they amount you can afford. There’s no dreaming in this. In black and white you’ll have an answer. More importantly, the current owner sees your prequalification, giving them the certainty that you can back up your offer.
Sellers are often overwhelmed with the uncertainty that a buyer will back out of an offer due to financial challenges. They don’t want ‘to be wasting their time. They have a house to sell! Prequalification takes the guesswork out of the financial details for both the buyers and sellers. It’s a win-win on both sides!
As Disney manages wait time, so does Pacor Mortgage. Come along for the ride and fast-pass your way into answers, information and the loan process. Pacor Mortgage Prequalification takes less than five minutes. Call us (773) 881-7744.
Sources:
https://www.advisory-mortgage.com/WhentogetQualified
https://www.clearmortgagelending.com/importance-prequal/
https://www.realtor.com/advice/finance/pre-approval-crucial-home-search/
https://whttps://www.washingtonpost.com/news/wonk/wp/2015/11/27/what-you-hate-about-waiting-in-line-isnt-the-wait-at-all/?utm_term=.5fa979e9433aww.lendingtree.com/glossary/what-is-prequalification