A Few Misconceptions About Mortgage PreQualification
A Few Misconceptions About Mortgage PreQualification
If you are shopping around for mortgages, you have most likely heard about pre-qualification processes – or maybe even received a pre-qualification offer letter in the mail. Some prospective homeowners have misconceptions about what exactly pre-qualification is and how it works, and that can sometimes even lead to less than optimum mortgage deals.
However, by understanding how pre-qualification works, you will be able to find the right mortgage for you – at the best possible rate. Here are two common pre-qualification myths that you may have heard.
Myth: Mortgage Pre-Qualification Commits You to a Specific Lender
Some homeowners mistakenly believe that being pre-qualified for a mortgage commits them to a specific lender. In truth, being pre-qualified only creates an opportunity for a lender to work with you.
The pre-qualification process does not involve any loan contracts and does not require you to pay the lender. Few homeowners know this, but you are actually not at all committed to any particular lender until you sign closing documents.
Pre-qualification is also generally a free process, although some lenders will ask you to pay a $25-$30 fee that it costs them to check your credit report. Typically, no lender will ask you to pay more than that during pre-qualification.
Myth: Rate Shopping Hurts Your Credit Score
Another common myth is that shopping around for the best mortgage rate will hurt your credit score because of having multiple credit checks done. There may be afew lenders who might tell you this is true in order to discourage you from checking out other lenders, however, according to FICO, mortgage inquiries are not handled the same way as other credit inquiries.
Mortgage pre-qualification may seem like just another hassle during your house hunt, however, it really does make the home buying process and the mortgage process faster and simpler. It is important to note that if you have been pre-qualified for a mortgage,you will still need to go through the standard application process before you are approved for your loan.
If you are just starting to look for your dream home, or are in the process of doing so, and you do not have a Trusted Advisor | REALTOR® assisting you, Call or Text a Trusted Advisor | REALTOR® from Martin Real Estate Advisors, a JP & Associates Realtors® Company, at (469) 262-5411 or visit our website at www.martinrealestateadvisors.com. We will gladly assist you with your home search, and get you in touch with one of our lending partners who can assist you with all your mortgage needs.
Author:Annette Bruen Phone: 972-977-3221 Dated: August 28th 2015 Views: 515 About Annette: Before making the move to help families realize their real estate dreams, Annette made her professio...
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
General Inquiries: email@example.com
Office Number: 1 (800) 683-5651
Texas Real Estate Commission Consumer Protection Notice
How Do I Get A Good Interest Rate In Dallas Fort Worth TxThe interest
"Chandra Harper is the perfect person to aid a potential buyer or seller of any real estate property. She has devoted her life towards putting the needs and concerns of others before her own. Chandra has had countless years in serving others in various capacities from the low end to the highest end of occupations. Her experiences give her a breadth of knowledge, people skills, and investigative analysis. I have full confidence in her desire to put in the work, do the research, and log the man-hours in helping any of her potential clients buy or sell in the best situation for their criteria.
Chandra has shown herself to be the consummate professional any and everywhere she has been. She typically outworks her peers and she aims to please her clients in all she does. Chandra gets my highest recommendation as both a professional and as an honest, hardworking, ethical and high character person.