Will applying for a mortgage affect my credit?
Mortgage credit checks are considered inquiries and may have a small impact on your credit score. However, there are no fees associated with this inquiry.
How is my interest rate determined?
There are several considerations that go into your interest rate, including credit score and debt-to-income ratio. Though rates aren't negotiable, if you current rate is 1-1.5% higher than market rates, lower it.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate of what you may qualify for. Pre-approval requires a credit check and considers your income and debt, so you're receiving a more accurate picture of the amount of home you can afford.
What is PMI?
If you make less than a 20% down payment with a conventional loan, you're required to carry private mortgage insurance (PMI). It's typically a monthly premium added to your mortgage payment.