Fixed Mortgage Explained
ARM Mortgage Explained
Adjustable Rate Mortgage
2nd Mortgage Explained
Reverse Mortgage
Mortgage Refinancing
Home Equity Loan
Home Equity Line of Credit
Qualifying for a Mortgage
Locking Your Loan
Your Mortgage Down Payment
Closing Statement
APR or Annual Percentage Rate
Common Interest Rate Index’s
PMI or Private Mortgage Insurance
Mortgage, Tax’s, & Insurance
Title Insurance
Freddie Mac
Fannie Mae
Escrow

Criteria used be lenders to determine the eligibility of an individual(s) for a particular loan value.
The most important item a lender will look for when considering an individual for a mortgage loan is that individuals ability to repay the loan. Many lenders arrive at this determination based on how an individuals monthly income compares to his monthly debt. This figure, called the debt-to-income ratio, often is required to fall within a certain percentage range in order to be eligible for a particular mortgage. Also taken into consideration in the loan approval process is the applicants credit score, credit history, and employment stability.
Pre-Qualified & Pre-Approved Whats the difference? Pre-Qualification is the informal determination of how much of a mortgage an individual can afford based on the information given verbally to a lender or mortgage broker. Pre-Qualification is the “quick and dirty” estimate of where you stand without any guarantee. Pre-Approval can mean a couple different things based on how a lender or mortgage broker verifies an applicants information. At the minimum, an individual with a Pre-Approval letter generally will have had his credit verified and a portion of the required financial information submitted and approved. A thorough lender or mortgage broker will have verified an applicants employment information and conducted a complete financial inspection in addition to the credit and financial items described above in order to provide a sound Pre-Approval.
Once again, some more great unbiased calculators to help you determine how much house many lenders think you can afford may be found on Jack Guttentags website by following this link: Home Affordability Make a selection from the options found under the “Housing Affordability” section.
Return to Mortgage Translator →