Get Prequalified

Knowing how much of a loan you qualify for removes the stress of wondering if you'll be approved, lets potential sellers know you are a serious buyer and gives you greater negotiating power.

In addition, prequalifying will allow you to see which mortgage programs you may qualify for. This gives you more options as a buyer and more time to decide how you want to finance your home. Be aware that a pre-approval of your loan is not the same as the final approval your loan receives from an underwriting department.

Select a Loan Program

Choosing the right mortgage program can be a difficult decision. An unbiased loan counselor will review your options and recommend the best loan to fit your needs. Typically ...

• If you are going to be in your house long-term, you might want a fixed rate mortgage.
• If you plan to relocate in two or three years, then an adjustable rate program might be best for you.

Mortgage Terms

• Private Mortgage Insurance (PMI): Insurance written by a private company protecting the mortgage lender against loss resulting from a mortgage default; if your down payment is less than 20 percent of the cost of the house, you will have to pay for PMI.
• Locking the Rate: A guarantee for the borrower that the rate quoted will be the actual mortgage rate if the applicant qualifies and closes within an allotted time period.
• Cap: The maximum allowable increase in either payment or interest rate during the life of an adjustable rate mortgage (ARM).
• Annual Percentage Rate: Reflects the cost of your mortgage loan as a yearly rate. It will be higher than the interest rate stated on the note because it includes, in addition to the interest rate, loan discount points, fees and mortgage insurance.
• Application Fee: A fee to cover the initial mortgage processing expenses such as appraisal and credit report.
• 30-Year Fixed Rate Mortgage: A long-term loan in which principal and interest (P&I) are repaid to the lender over a 30-year period. Your monthly payment remains the same for the life of the loan, offering a sense of stability.
• Adjustable Rate Mortgage (ARM): One of the most popular programs in which the interest rate changes over time, according to terms specified, using a calculation tied to short-term Treasury Bill interest rates.