Common Questions
What is the difference between pre-approval and pre-qualification?
The pre-approval process is much
more complete than pre-qualification. For pre-qualification, the loan
officer asks you a few questions and provides you with a pre-qual
letter. Pre-approval includes all the steps of a full underwriting
approval, except for the appraisal and title search. Both can put
you in a better negotiating position, much like a cash buyer.
When does it make sense
to refinance?
Usually people refinance to save
money, either by obtaining a lower interest rate or by reducing the
term of the loan. Refinancing is also a way to convert an adjustable
loan to a fixed loan or to consolidate debts. The decision to refinance
can be difficult, since there are several reasons to refinance. However,
if you are looking to save money, try this calculation:
| 1. |
Calculate the total cost of the refinance |
| 2. |
Calculate the monthly savings |
| 3. |
Divide the total cost of the refinance |
| (#1) |
by the monthly savings. |
| (#2) |
This is the "break even" time. If you
own the house longer than this, you will save money by refinancing. |
Since refinancing is a complex
topic, consult a mortgage professional.
What is a rate lock?
A rate lock is a contractual agreement
between the lender and buyer. There are four components to a rate
lock: loan program, interest rate, points, and the length of the lock.
We work to get you the best loan possible.
Our qualification process is simple and fast!
