The Difference between Pre-Qualified and Pre-Approved

It has been rightly said that the future belongs to those who prepare for it. There is no advice better than this for potential homebuyers who need to start preparing for the task of buying their dream home. Without preparation, many potential buyers are in for a disaster, as the list of things that can go wrong is endless.

Most buyers make the mistake of using the terms, pre-qualified and pre-approved interchangeably. 

Whereas, there is a world of difference between these two. If you are also one of those who are confused by these two terms and don’t know what means what, then don’t worry. We’ll help you get up to speed on the difference between these two terms and why a misunderstanding can spell DOOM for your dream of buying a home.

Pre-Qualified

Getting pre-qualified for a loan is the first step of the mortgage process and is a fairly simple one. All you need to do is supply a lender or a bank with your overall financial picture, comprising of your income, assets and debt. The lender evaluates this information and gives you a general idea of the loan amount for which you qualify. 

Pre-qualification is not a lengthy process and can be done over the phone or even online and has no costs associated with it. In order to get pre-qualified for a mortgage, analysis of your credit report and in-depth analysis of your ability to purchase a home is not required.

Because it is a quick process devoid of any legality and based solely on the information that you provide to the banker/lender, your pre-qualified amount is not a sure thing. It’s just a general idea that states you might be eligible for a certain amount of loan. 

‘Might’ is the keyword here. Being pre-qualified for a mortgage doesn’t provide any guarantee. On the other hand, a pre-approved buyer is the one who has been investigated thoroughly and carries a surety that his mortgage will get approved for a certain sum.

Pre-Approved

Getting pre-approved is the second step of the mortgage procedure and follows the pre-qualification stage. Pre-approval is a more in-depth and detailed analysis of your financial condition that requires you to fill up an official mortgage application and sometimes also pay a certain amount of fee. 

Once you complete the application and submit it to the lender, the next step involves submitting the necessary documents so that the lender can perform an extensive check on your current credit rating and financial background.

After performing all the necessary checks, the lender can tell you the exact amount of mortgage that you can secure. The lender also provides you with a better picture of the interest rate that will be charged on your mortgage and you might also be able to lock in a specific rate in some cases.

With pre-approval, you get a written conditional commitment for an exact loan amount that allows you to look for homes within that price level. Moreover, a pre-approval provides you an upper hand in your negotiations with a potential seller, as he will know that you’re one step closer to securing a mortgage.

Another major advantage of getting pre-approved before you start hunting homes is that you’ll know exactly what kind of a house you can afford. Thus, you won’t waste your time in guessing or looking at properties that are out of your budget. 

For instance, if you have been pre-approved for a mortgage of $300,000, you’ll look for homes within that amount and not for a home that costs $500,000.

Getting pre-approved also enables you to move quickly when you find your perfect home because the offer you make won’t be dependent on obtaining financing and that saves valuable time. 

A pre-approval letter also makes sure that the seller knows your offer is genuine and serious. A pre-approval letter basically prevents you from losing the home to another potential buyer.

Conclusion

Pre-approved and pre-qualified are not the same things. Therefore, don’t just assume that a lender will provide you a loan until you get pre-approved. 

Tips For Finding Best Mortgage Companies & Securing Mortgage Loans at Best Rates Infographic

 Mortgage Loan Company

When you plan to buy a home, it goes without saying that you are in it for the long haul due to the reason that a mortgage debt of 15, 20 or even 30 years is accompanied by it. Therefore, it is smart to shop around for a while to find the best mortgage loan company out there to accompany you in this long journey. One wrong move can result in the selection of a wrong mortgage company or a wrong product and then you could end up spending thousands of extra dollars that could have been easily saved.

If you are planning to purchase a home, All Western Mortgage is a name that has been satisfying its customers since 1981. When it comes to residential mortgages, our happy clients speak for our work. To know more about us, just give us a call at 702-850-2790 or visit http://www.awmlending.com/contactus.php

Why Approach a Mortgage Loan Company if You can Pay Cash?

Not many people have hundreds of thousands of dollars just lying around to buy a home with cash, but even if they do have access to such amount of cash, they prefer to approach a mortgage loan company and get their homes financed. Don’t believe us? Here is a fun fact – Facebook founder and CEO Mark Zuckerberg also has a mortgage loan of $5.95 million on his Palo Alto, California estate.

You might be wondering that why would a billionaire like Zuckerberg will go to a mortgage lending company to take a mortgage when he can just pay cash for his house. Well, apart from financial flexibility, here are a couple of reasons why taking a mortgage makes more sense than paying cash for your home.

     Inexpensive Financing: Mortgage rates are at an all time low currently. As of 30^th August 2016, you can easily get a fixed rate mortgage at an interest rate of less than 3.5%.

     Financial Flexibility: If you are planning to buy a home with cash then it is safe to assume that you have done extremely well for yourself and can easily pay $300,000 for a house. However, doesn’t it make more sense to keep that money with you to do as you please instead of tying it down in the house? If you take a mortgage, you can do whatever you do with the money while still making the mortgage payments.

    Tax Deductions: This is common knowledge that mortgage payments are tax deductible. With a mortgage loan, you’ll be able to deduct your interest payments from your taxes.

For best rates on home mortgage loans, contact All Western Mortgage today. All Western Mortgage is a pool of best online mortgage lenders that has been helping people buy their dream homes since 1981. Call us on 702-850-2790 or visit http://www.awmlending.com/

How To Cut Down Your Mortgage Costs?

If you are struggling to pay your monthly mortgage installments, you must take action quickly before you fall into debt and get your home foreclosed. As soon as you realize that you’re finding it difficult to pay back the mortgage, go to your mortgage loan lender and talk to him. Mortgage professionals, like those there at All Western Mortgage, are understanding people who help you in dealing with your crisis by suggesting various ways out.

Here are some things that you can do to cut down on your mortgage costs:

Switching to a Cheaper Mortgage: The best way of cutting down your mortgage costs is looking for a cheaper mortgage deal and taking a refinance. There will definitely be charges involved with refinancing, but if it lowers your mortgage payments substantially then it is worth a shot.

Ask Your Mortgage Lender for Lower Payments: You can ask your mortgage lender to accept lower payments for a limited amount of time. If you have been a good customer till now, have paid your earlier dues on time and the current financial hardship is of temporary nature, then most mortgage servicing companies will understand your grievance and offer you a new payment plan.

  Changing payments on your endowment policy: If your mortgage is an endowment mortgage, you can either reduce the payments or stop the payments altogether. You can make these payments after you recover from the financial hard patch that you are going through. However, this can be a little risky and you should consult your financial adviser before going ahead with this.

Most mortgage lenders are extremely understanding in this regard and talking to them really helps. All Western Mortgage is the best mortgage loan company in such scenarios. If you ever face difficulty in making your mortgage repayments, we’ll work closely with you and help you overcome this hard time. If you have any questions from us, check our FAQ page here or give us a call at 702-850-2790. 

Tips For Finding Best Mortgage Companies & Securing Mortgage Loans at Best Rates

Mortgage Loan Company
When you plan to buy a home, it goes without saying that you are in it for the long haul due to the reason that a mortgage debt of 15, 20 or even 30 years is accompanied by it. Therefore, it is smart to shop around for a while to find the best mortgage loan company out there to accompany you in this long journey. One wrong move can result in the selection of a wrong mortgage company or a wrong product and then you could end up spending thousands of extra dollars that could have been easily saved.

Finding good mortgage loans and a good mortgage lender involves more than just the interest rate. You’ll be handling your mortgage for a minimum of 15 years and therefore, it is important that you work with nothing but the best mortgage company, staffed by professionals, who have your best interest at heart and who can expertly guide you through the entire process. 

Here are some tips that will help you in finding the best lenders and grant you more bargaining power:

Polish Your Credit Score: With great credit score, comes great bargaining power and great bargaining power ensures better interest rates.

Know the Lending Landscape: You’ll have to compare a lot of different type of lenders in order to find out which one suits your requirements the best. Talk to online lenders, credit unions, mortgage bankers etc. You can’t rule anyone out before doing your research and comparisons.

Compare Rates: It goes without saying that you’ll have to sit for hours in front of your computer screen and compare rates and terms nonstop to find the best lender.

Asking the Right Questions: Find out about the lenders’ communication channels, fees, requirements etc. and do it upfront. Don’t be shy in asking the questions.

Read the Fine Print Thoroughly: A mortgage loan is not just principal and interest. There are various other costs and fees associated to it. Before you finalize a lender, grab a magnifying glass and read the fine print thoroughly.
  
If you are planning to purchase a home, All Western Mortgage is a name that has been satisfying its customers since 1981. When it comes to residential mortgages, our happy clients speak for our work. To know more about us, just give us a call at 702-850-2790 or visit http://www.awmlending.com/contactus.php

A Borrower’s Guide to Mortgage Application

What is a mortgage application?

The basic purpose of a mortgage application is helping the lender decide whether to lend money to the borrower or not. But when you apply for a mortgage, filling the standard Uniform Residential Loan Application is a little bit more complicated than that.

There are a total of 5 sections in the application form and here is a section by section summary of the same, which will allow you to understand it better.

Section 1: The first section describes the loan program that you wish to apply for. There are a lot of loan types available like conventional (Fixed Rate or ARMs), VA, FHA, USDA etc. It is important that you have a comprehensive discussion with your loan officer to understand which loan type will suit your financial needs and conditions the best.

Section 2: This section of an offline or online mortgage application deals with the property information and purpose of the loan. If you haven’t yet decided the type of property that you wish to purchase, parts of this section will be checked as “to be determined.” The other info that you need to fill in this section includes, who will own the house, how the title will be held and the source of down payment.

Section 3: This section deals with your personal information, which includes your and the co-borrower’s full name, birth date, contact details etc. This section can be easily filled by you without any help.

Section 4: The 4^th section of a mortgage application deals with your employment information and a two year job history with your present or previous company is the minimum requirement.

Section 5: The final section deals with your financial ability to repay the mortgage and asks for the details of your monthly income and combined housing expenses.

Now that you are aware of all the sections of a mortgage application, fill it up here and avail best interest rates on home loans offered by All Western Mortgage.

Are You Getting The Best Mortgage Deal From Your Mortgage Loan Company?

Mortgage is an extremely heavy and expensive debt and every single penny that you can manage to save on your monthly payments can make a huge difference on the over-all repayment amount. Therefore, it is a good idea to check every now and then whether you are getting the best deal on the home loan from your mortgage loan company or not.

If you are availing the benefits of a special kind of mortgage plan for a fixed period, always check for the availability of a better deal a few months before its expiry. In order to ensure that you don’t end up struggling to make the ends meet, it is necessary that you don’t pay more than what you have to.

Another important aspect that you must remember is that lower interest rate is not the only criterion to focus on while switching your mortgage plan. Your mortgage lending company might charge you for changing your mortgage plan or for closing your account earlier than the agreed upon time. If you switch from your previous lender to another online mortgage lender, there might be costs associated with that as well. So, keep all these factors in mind before making the switch and signing on that dotted line.

Making a switch at the right opportunity in favor of lower interest rates and affordable switching costs can save you thousands of dollars in mortgage payments and can make your life easier Therefore, always be on the lookout for a better mortgage deal.

If you are searching for some professional financial advice regarding the same, contact All Western Mortgage by visiting www.awmlending.com or by calling us directly on 702-850-2790. Our expert mortgage advisors are always there for you to guide you through the complex process of mortgages