Category : Mortgage Tips

Mortgage Facts

Posted in Mortgage Tips on 28. Jan, 2011

If you learn some facts before you apply for a loan with a bank or mortgage broker, you will be able to secure a better deal. The lender will first look at your debt to income ratio. This will let you and the broker know how much house you can afford and this amount you can calculate yourself.  It is also a good idea to know the difference between pre-approved, pre-qualified and a loan commitment. 

Each of these will effect your offer to buy as well as the contract your receive. There are also bi-weekly plans for mortgage payments and this option can help you pay off your mortgage faster. Be aware of how these work and then find out other ways to lower your interest and pay off your loan quicker.  If you are unable to repay your debt, a lender has a tool to use to recover those funds. Both a deed of trust and a mortgage are security instruments and one lets the lender foreclose easier. 

If you ever feel uneasy about your lender and the questions he asks, keep in mind loan fraud is alive and well in this industry.  If you will be needing home insurance, take a look on discountvouchers.org for deals and coupons for this purchase. 

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Mortgage Tips: Prequalified vs. Preapproved

Posted in Mortgage Tips on 11. Sep, 2009

Mortgage is a great way to finance your house purchase. You can enjoy up to 30 years of mortgage on your house and make buying a house a lot more possible. These days, lenders are offering you amazing mortgage deals to help you get your dream house without problems. When it comes to applying for a mortgage, the term ‘prequalified’ and ‘preapproved’ will pop out. Understanding the difference between the two terms will help you purchase your dream house even faster.

When you are prequalified, the lender thinks that you are meeting all the requirements for a mortgage. It is not based on actual verifications; prequalifying simply means you will most likely get the mortgage, but the deal is not closed yet. Preapproved mortgage, on the other hand, is based on actual verifications; you will get the house paid as soon as you pick one with preapproved mortgage because the lender will give you a mortgage for sure.

You can clearly see that getting yourself preapproved is a lot better than simply prequalifying for a mortgage. You will have that extra safety and assurance knowing that you can search for your dream house and get it as soon as you find the one you love.

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