Pre-Approval vs. Pre-Qualification

Pre-Approval vs. Pre-Qualification

If you are first time home buyer or maybe you just didn't know there was a difference between pre-approval and pre-qualification. Well I'm going to make it simple for you today.

Pre-Approval is an informal process by the lender to get basic information from you like your assets, income, and liabilities. These are based on what you tell the lender and this is an important time to be upfront with your lender and provide them with all the information as accurate as possible.

Pre-Qualification is the more formal than the pre-approval. During this process you will provide copies of bank statements, pay stubs, you will sign an application for a mortgage and your credit will be pulled. There are fees associated with this portion of the loan process. 

If you know you are wanting to purchase a home it's good to meet with a lender before you start shopping. This way you know what you can afford and you won't waste your time or your real estate agent's time.

For a more in depth article of the difference between the two you can go HERE

ARMs

ARMs

Although they are normally cast in a negative light, adjustable rate mortgages might be used to your advantage. If you know that you may only be in the home for 5 years or less, you may be able to reduce your interest expense. And if you make payments based on what it would have been for a fixed rate, those additional funds will help build equity. Your mortgage professional can help guide you through the decision making process and help determine if an ARM is right for you.

1st Time Home Buyer

1st Time Home Buyer

One of the biggest changes for first time homebuyers is the ability to use gift funds for downpayment. FHA has always allowed gift funds for downpayment but you can now purchase using conventional financing with as little as 3% down. Its becoming apparent that rents will continue to rise and the value of real estate has risen rapidly over the last 18 months. Now is the ideal time to purchase your first home!

When to Refinance?

When to Refinance?

When is a good time to refinance your mortgage?

  1. When rates drop and you can save on your rate is a great reason to refinance.
  2. When you are wanting to use the equity in your home to do repairs or payoff debts.
  3. What we always try and encourage when someone refinances is a rate and term reduction. If you can lower the term of your loan at the same time you are lowering the rate is the ideal situation.
  4. If you are wanting to lower your payment of your mortgage is another reason some people refinance their loan.

Payment

Payment

What you need to know about your loan payment.