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| YourDomainHere.com | Name@Email-Address.com 16 Pre-Qualication is Key As discussed earlier, getting pre-approved is a crucial rst step towards homeownership. Pre- approval is different from getting pre-qualied, which typically relies on self-reported information to help buyers know how much home they might be able to afford. The key word here is might. Your nancial information is thoroughly reviewed and veried with pre-approval, including your credit score, income, assets, and debts. Pre-approvals require a few more steps, but they give buyers more condence in their purchasing power and more leverage in negotiations. In many markets, buyer demand for homes remains strong due to historically low mortgage rates. Some homes are selling quickly, even receiving multiple offers. Pre-approval gives buyers the agility to move fast on properties they love and help a buyer's offer stand out from competing offers. Research lender options and rates One of the primary goals for buyers is to nd the lowest interest rate and the best loan terms. Locking in a low-interest rate is critical, and your choice of lender has a signicant impact on the entire mortgage experience. A small difference in interest rates can have a substantial impact on the bottom line. The difference in savings between a 0.5% and 1.0% interest rate is rather large. For example, a $300,000 loan with a 30-year xed-rate mortgage with a 1% difference in interest rate could cost you an extra $60,275 in interest payments over the course of the loan! Adjustable-rate vs. xed-rate mortgages Mortgages are usually repaid over 10-year, 15- year, 20-year, or 30-year periods. With xed- rate mortgages, your interest rate during that repayment period stays the same. Fixed-rate mortgages tend to be more popular because of the certainty around monthly payments — and borrowers don't need to worry about their payments going up if rates rise. With adjustable- rate mortgages (often referred to as ARMs), interest rates can change after an initial xed-rate period, depending on the interest rate index. ARMs are less predictable because the payment increases if the interest rate increases. Which type of mortgage is best for you might depend on how long you plan to live in the home. If you think you'll move in a few years, an ARM could result in more savings. Yet, with today's historically low-interest rates, the risk of future rate increases isn't usually worth the nominal savings. TITLE CLOSING MOVING PREPARATION INSURANCE FINANCING

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