What could be more comforting than the peace of mind that goes with knowing your mortgage is fully approved?

You will have a greatly improved negotiating position when you are preapproved for a mortgage. Sellers are more apt to negotiate with someone who already has an approval in hand, it lets them know they are working with a serious buyer. A preapproved buyer can also close on a property more quickly. Obtaining a preapproved mortgage is essential in a “seller’s market” or where supply is limited.

Preapproval uses basic information as well as electronic credit reporting. It is a true mortgage commitment. Which means a commitment to financing your home and an indication of the total mortgage amount available to you. Zino Mortgage, as well as others can help you through the loan process.

Prequalification, on the other hand, is not full mortgage approval but an estimate of what you can afford. When you prequalify for a mortgage, the lender collects basic information regarding your income, monthly debts, credit history and assets, and then uses the information to calculate an estimated mortgage amount.

Fixed Rate Mortgage is a traditional why of financing a home. The interest rate stays the same for the entire term of the loan-usually 15 or 30 years- so the interest and principal portions of your monthly payment remain the same. Many fixed rate mortgages cannot be assumed by the subsequent buyer.

Adjustable Rate Mortgage, the interest rate is linked to the financial index, such as a treasury security, so your monthly payments can vary over the life of the loan. Usually 25 to 30 years. Most adjustable rate mortgages have a lifetime cap on the interest rate to protect the buyer. The lower initial payments on the ARMs make it easier for buyers to qualify. Some ARMs may be converted to fixed rate mortgages at specified times, usually within the first five years.

There are many different loan packages out there! There is one for every buyer; you owe it to yourself to check into them, even if you have bad credit or no money to put down. The lenders are competing for your loan and a mortgage broker can find the right one for you.