georgia mortgage companies: Pre-Approval and Pre-Qualification

2008-03-26 12:14:12

( Financial )



Need to know about atlanta mortgage rates? Then go to georgia mortgage companies; lenders in georgia can tell you about home loan pre-approval and mortgages in georgia.

What questions do you need to ask georgia mortgage companies?

What exactly is the difference between pre-approval and pre-qualification?

Reputable georgia mortgage companies will tell you that the starting point for mortgage financing is pre-qualification. What exactly is this? An overview of your savings, existing debt, length of employment, income, is taken and this information, once analyzed determines your mortgage loan eligibility.

Pre-approval on the other hand is written documentation showing that a lender will finance you – essentially meaning that an underwriter has reviewed your loan application.

The underwriter will assess how much you can borrow according to your income, savings and debt ratio. At this point you can look around for a house that suits your loan amount category.

Why is pre-approval a good thing? Because it means you can shop around as if you were a cash buyer. It gives you the power to negotiate. Your offer will be taken much more seriously. You can save as much as 15% on the price with this kind of full credit approval.

What about your monthly payments?

This will depend on your loan program of choice. Some lenders in georgia can even give you a spreadsheet which is easy to read and will compare different loan programs which suit your present and long-term goals – thus narrowing your choice.

In this way you can choose a program that makes you feel comfortable before making an offer.

What does pre-approval cost?

It’s free – you lose nothing and you have everything to gain.

What about mortgage refinance?

When should you refinance? Common wisdom says that once you are able to better your interest rate by two points at least, this is the time to refinance. Generally this is true – but really there are other reasons to refinance:

Build equity faster
If you are able to make higher payments each month because of a salary increase or any other reason you can change your 30 year loan program to a 15 or 20 year structure. This way you can build equity faster, as well as save a huge amount of financing fees.


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