Frequently Asked Questions

Indeed a good query! A mortgage is a genre of loan taken out to purchase a house. A mortgage lender enters into a formal arrangement to purchase your home in full with the understanding that you would pay the lender back plus interest over a predetermined period of time. Even if they don’t have the whole amount of money accessible right once, mortgages enable purchasers to buy homes.

Simply put, a pre-qualification is your mortgage advisor’s assessment of your potential to purchase a property. Your credit score and a few other self-reported factors are used to calculate it. A pre-qualification may help you determine which loan program is suitable for you and even how much you might be able to borrow.

Your loan amount is formally confirmed by pre-approval. A more rigorous examination is conducted on your income and asset documentation. You can consider buying a home more seriously after receiving pre-approval. Your consultant will be able to provide some useful advice on improving your credit score, reducing your debt, or overcoming any other financial barriers keeping you from purchasing a property if you are unable to be pre-approved.

Give the lender as much information about your circumstances as possible throughout the communication, and be careful to address any queries they may have.

If they suggest a particular loan option for you, ask them to put it—or a few options—in writing so you may compare them and learn about the advantages and disadvantages of each situation. A good time to inquire about options is now.

Do not be scared to inquire why. Make them clarify any fees or costs that seem strange to you. Move ahead if you’re certain that they seem to understand what they’re talking about and have your best interests in mind. If not, feel free to go somewhere else.

A mortgage broker and a bank, certainly have varied differences. The primary distinction is that a bank mortgage officer solely promotes the products that their institution offers, whereas a mortgage broker acts as an intermediary between other lenders and receives compensation for referring business from those lenders. Moreover, mortgage brokers possess knowledge about the market and what other lenders have to offer.

Private mortgages are intended to be temporary fixes, often lasting one to three years, that assist borrowers to achieve their objectives while building their credit or providing emergency lending.