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Pre-qualification is an assessment by the lender, based on certain basic information given by the borrower, usually employment history, income, asset information, current monthly debt, and credit worthiness. Based on this quick evaluation, the lender makes a tentative decision to...
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A high credit score will earn you better interest rates and present a greater number of loan options. Some credit issues in the past will not necessarily disqualify you from getting a mortgage. Lenders will look for a credit history...
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The interest rate is the cost of borrowing the principal loan amount. It can be variable or fixed, but it’s always expressed as a percentage. The APR is a more comprehensive measure of the cost of your mortgage because it...
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Some buyers feel like once they have signed the application, they are obligated to borrow. That is not the case. Throughout the loan process, none of the documents that our clients receive are contractual until they are actually at closing...
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A point equals one percent of the loan and is usually paid at closing. For example, if your loan amount is $100,000, then one point would equal $1,000 OR one percent. Discount Points are fees paid by the buyer to...
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An appraisal is the standard way to estimate of the value of the home you are purchasing. Professional appraisers are trained in estimating the value of real or personal property. A copy of the appraisal will be provided to you...
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Market value is the likely selling price of a home with a willing buyer and a willing seller on the open market. The location and condition of the property can affect the market value of the property.

When a lender “locks” the interest rate, a homebuyer is guaranteed a specific interest rate for a specific period of time. That period of time is called the lock period. Typical lock periods are 15, 30, 45 and 60 days....
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Closing costs can include items like title insurance fees, attorney fees, pre-paid interest and documentation fees and various other fees. Closing costs can differ for each borrower due to differences in the type of mortgage, the property location and other...
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An escrow account can be created to ensure that real estate tax and insurance bills are paid in full and on time, without the borrower having to save large amounts of money and keep track of various due dates. An...
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