Learn the Mortgage Process

• Pre-qualification uses only the information that you supply regarding income and debts, as well as a basic credit report, to give an opinion on your suitability for a mortgage. It commits no one, but it does eliminate most potential questions and strengthens your bargaining position. Apply now!
  
• Pre-approval is a true loan approval, usually subject only to an acceptable appraisal of the property you are buying. All income and debts have been verified and a full credit report has been obtained. This gives you the strongest bargaining position, since the only remaining question is the verification of the value of the home that you are buying.
  
• Final Approval and Commitment is the final step. Although it may be subject to some final documentation (for example, the original copy instead of a fax of an IRS return), all of the necessary verifications, as well as an acceptable appraisal of the property, have been completed. The Commitment Letter informs the Closing Agent that the mortgage process is complete.
• The down payment is one of the first thoughts that a buyer thinks about. Unfortunately, there is no definitive answer. Down payment will vary from 0% up to 25%. On an average, most home buyers make down payments between 5%-15% of the purchase amount, although your own personal situation may dictate more or less down payment.