If you are new to home financing, you may be a little confused by some of the common terms that are used in the process.  These common terms will help simplify getting your home loan and ensure you understand what stage you are at and what comes next. Getting A Loan Pre-Qualification:  This is a term that means you have been provided an estimate of what sort of loan you can expect to obtain based on your credit score and what’s currently available.  It doesn’t guarantee you a loan or any loan terms. Pre-Approval:  This means that you have actually applied for a mortgage and the loan has been approved.  Your approval is usually good for a certain time period during which you are guaranteed the terms of the loan. Locked In:  This is a term that means you have been promised a certain interest rate for a certain time period, usually 30 days. Basics Of Loans Principal:  This is the amount that is owed on the loan, the actual amount financed excluding interest. Interest Rate:  This is the amount of interest, expressed as a percentage, that you will be paying on your loan. APR (Annual Percentage Rate):  Often confused […]
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