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Getting Pre-approved For a Loan
For a first time home buyer, you are taking on a monumental task, undoubtedly the largest task you will ever venture upon, financially speaking that is. Unfortunately, most of us don t have huge sums of money sitting around in our bank accounts to go out and pay for a house in cash. We must find a lending institution that will allow for us to borrow the money. The fun part of buying a home is going out to look at various houses for sale, and walking through what could very well be your dream home. But before you spend all of your time visiting open houses and walking through homes for sale, you will want to figure out how much you can afford. The last thing you want happening to you, is finding your dream home, making a bid, having your bid accepted by the seller, than finding out a week later that you will not be purchasing the home because you don t have the income to back it up. To avoid this heart breaker, you will want to acquire a preapproval from a lending institution. The preapproval process involves an in depth look at your financial situation. The lender will examine your credit, verify your employment and annual salary, take a close look at your outstanding debt as well as your assets, and determine what money if any you have available for a down payment. The preapproval process could take as long as a week, but it is time well spent. Once you are armed with a preapproval, you will know exactly how much you can spend. The preapproval is also very powerful because the seller of the home wants to be sure that you have the financial backing to purchase their home if they decide to sell it you. The preapproval is not to be confused with the pre qualification. The pre qualification is determined by a quick conversation with a loan officer who determines your spending power from a verbal standpoint. You are asked a series of questions about employment, outstanding debt, credit, assets, etc. Once this information is taken, the process pretty much stops right there. What the lender believes you can afford is merely an estimate on their part, no verification of is done on the information you provided them with. Be careful, this estimate could come back to haunt you if it was over estimated, so take the time and get a preapproval. When purchasing a home, allow for time to be on your side. Take your time and find the right lender and realtor for you. And most of all, take your time, so that you may find the perfect home for you.

Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.

A Fixed Rate Mortgage Could Be the Right Choice
In today s economy, a fixed rate mortgage is the best route for most people to go through. With the interest rates threatening to rise, locking in a low rate today could save you lots of money in the future. A fixed rate mortgage is usually a little higher than an adjustable rate mortgage. This is because the lender is forced to offer the same rate no mater what the prime rate may rise to in the future. In the 70 s and early 80 s, people with fixed rate mortgages were in a nice position as flexible rate mortgages climbed into the 20% rates. There is an exception to the fixed rate rule, but it takes some serious discipline. If you can make yourself pay off the loan BEFORE the first interest rate hike then a flexible rate will work for you. You get a lower interest rate which means you pay less in finance charges. If paying off your mortgage early is your goal then you need to check with your lender to make sure there are no prepayment penalties. Some companies write in a clause to prevent you from paying off the loan early so they are sure to get all their finance charges. What ever direction you choose to go with your mortgage, whether you get a fixed rate mortgage or a flexible rate mortgage, aim for the shortest term length you can manage. It will mean higher payments on the front end, but it will mean a great savings in the finance charges on the back end of the loan. For the first time buyer or for those who have had financial difficulties in the past, a fixed rate mortgage could keep them from being pushed into future financial problems. Keep in mind that as times change, and interest rates fall, it is a good idea to examine your mortgage situation to see if a new route could be a better one.

Kathryn Lang is a freelance writer covering the finance industry. She has written various articles on <a href="http://www.fairinvestment.co.uk/mortgage.aspx">fixed rate mortgage</a> products and <a href="http://www.financemarkets.co.uk/category/mortgages/">mortgage news</a> in general.

Getting a Mortgage: Dos and Don’ts
So you’ve established a great credit rating and are ready to visit a lending institution to see about getting pre-qualified for a mortgage. Here’s a few tips for what to do or not do.Do keep paying yo