Now on this next part, a lot of people are confused and I do get these questions as well, especially for first-time homebuyers. Don’t worry it will only take a few moments of your time. So let’s get started
6. What is the difference between pre-qualified and pre-approved?
1. Pre-qualification: Getting pre-qualified for a mortgage gives first-time homebuyers an indication of how much they “might” qualify to borrow. Take note of the word “might” here because this mortgage amount is not guaranteed as no information has yet been verified. It provides a general picture to you and the lender of which direction you should take. A letter from the lender may only state that you are “likely” to be approved for a mortgage. It takes one to three days and it’s surprisingly simple all you need to do is provide a lender with your income, credit history, assets, debt, and down payment.
2. Pre-approved: Better yet is getting pre-approved for a mortgage, which is based on a real credit score, and it also puts real estate agents and home sellers at ease. In other words, the information you provided like your income, credit history, assets, and other information has been checked by the lender in several ways. The buyer has more to offer when making a deal and in a competitive market, this can be a definite plus.
7. How do I get the best mortgage?
It is time-consuming to learn about the various rates and terms of mortgages. Once you find your dream home, there is not always adequate time to do your research. So do your homework before searching. It does help if you have a reliable agent who has been in the business for several years.
Pro-tip– Now if you can go for a shorter loan term length, go for it there are 10 years, 15years or 20-years mortgages as well
As mentioned before in Part II of my blog conventional is the way to go and again it’s on a case per case basis.
So, we finally made it to the end of Part III, glad you could stick around. Now the information provided is to get you started, you know to point you in the right direction. If you have any questions regarding Real Estate please let me know, I am always happy to help.