You need to get your family prequalified for your home loan before you walk in to your first home. It is more than just a good idea; it is smart real estate that saves a lot of time, and more importantly a great deal of possible frustration down the road. No one wants to accept an offer from an unqualified buyer and it is very rare these days that a seller will extend a contingency to a person who still needs to secure personal financing for a loan. If you know that you need financing to close the escrow, and you know you are going to be purchasing a new home, take a few minutes and gather the necessary documents for the mortgage banker and let them work their magic up front. If will give you more leverage, and more credibility when you are ready to write the offer on your next dream home.
Unfortunately qualifying buyers is one of the most overlooked and ignored steps in the real estate profession today. It is a fundamental flaw Realtors make – assuming their client (or potential client) is already qualified for a home loan when in reality they are not. For a client to tell a Real Estate Agent “not to worry, I’ll get approved for a loan” should be a red flag to stop everything and walk them through the prequalification process. Not because the person is not telling the truth, but rather because they are not mortgage bankers. Maybe they think they are going to get a 4% rate but in reality they are going to get a 5% rate because they missed a payment on the JC Penny account 3 months ago – who knows? For failing to pre-qualify a previously unqualified buyer will virtually guarantee a horrible experience for all parties to the transaction somewhere down the road, as it will undoubtedly delay the process somewhere.
BanCorp Real Estate Group through its sister company: UBC Direct Lending offers prequalification for each of our clients upfront. The process takes less than 24 hours and it guarantees an easier and faster™ close of escrow with better written offers and more satisfied clients.