Getting Your Mortgage

1. Qualification – An opinion that your financial position will qualify you to get a mortgage, home loan, of a certain amount.  This often precedes a

2. Pre-approval – A conditional commitment by a lender for an amount, before you settle on a specific property.It tells you the loan amount or monthly payment.  They can expire if market conditions change.

3. Self-approval or on-line calculation – This involves using a calculator found on line to crunch the numbers.You will need your credit score.  One site: http://www.mtgprofessor.com

4. Lender Approval – This is a commitment by a lender to make a loan for a specific property with all the details like down payment, interest rate, appraisal minimum, and detailed documentation requirements.

5. Lock – This takes the lender commitment one step further by locking in the amount and interest rate.  Often there is a commitment fee.

6. Appraisal – A professional opinion of what the property is worth based on comparison with similar properties.  This will limit how much the property can be financed for.

    Page credits to Jack Guttentag, the mortgage professor