What is the difference between a fixed-rate and adjustable-rate mortgage?
A fixed-rate mortgage has an interest rate that stays the same for the entire loan term, while an adjustable-rate mortgage has an interest rate that can change over time based on market conditions. Fixed-rate mortgages provide stable payments, while adjustable-rate mortgages offer the possibility of lower initial payments and flexibility.
How much money do I need for a down payment?
The amount of money you need for a down payment will depend on the type of loan you are applying for, your credit score, and how much house you can realistically afford. Generally, a down payment of at least 5% of the purchase price is required, but some loans may require more. Our mortgage specialists can help guide you through the process and determine how much you need to save.
What is the difference between pre-qualified and pre-approved?
Pre-qualification is an estimate of how much you can borrow based on your income, assets, and debts, while pre-approval is a more formal process where you submit a full loan application and your financial information is verified by the lender. Pre-approval is more valuable because it shows that you are a serious buyer and have already gone through much of the application process.
How long does it take to get approved for a mortgage?
The length of time it takes to get approved for a mortgage varies depending on the lender and the type of loan you are applying for. Generally, it can take anywhere from a few days to several weeks to get approved. Factors such as your credit score, income, and debt-to-income ratio can also affect the approval process. Our mortgage specialists can help give you a better idea of how long the process may take.