A pre-approval letter is a document from a lender that states that they are willing to lend to you up to a certain loan amount. Receiving this can give borrowers an advantage when buying a home because it lets the seller know that you are serious and that you are backed by a lender.
A down payment is a percentage of the purchase price that homebuyers pay upfront at closing. The down payment amount will change depending on the loan you choose, the property type, and the price of the home.
A loan principal is the amount of money you borrowed that you agree to pay back.
A loan term refers to a scheduled length of time it takes to repay a loan completely.
From underwriting to closing, it can take anywhere between 15-20 days for a loan to process.
A loan or mortgage broker acts as an intermediary between lenders and borrowers. They can help borrowers find the best lender without the hassle of contacting multiple offices. They also assist with the loan application and approval process.