If you are a first time home buyer, the process of obtaining a loan and actually purchasing a home can seem daunting and confusing. It’s important to understand the language of Baton Rouge mortgage lenders so that you will not make mistakes based on misunderstandings. Here are some basic terms to learn before you begin the house hunt. The better educated you are going in, the less likely you will be to suffer disappointment or make a costly mistake.
Pre-Qualifying and Pre-Approval
There’s a world of difference between pre-qualifying for a loan and being pre-approved. They are not terms that can be used interchangeably, as they apply to different steps in the mortgage loan process. Pre-qualifying for a loan means that you have asked a lender what amount of a mortgage you would likely be approved for based on a few pieces of financial information that you provide. (more…)