WHAT IS THE DIFFERENCE BETWEEN PREQUALIFIED AND PREAPPROVED?
These terms refer to the status on the loan approval process. Prequalification is a determination of your probable ability to obtain a loan. preapproval means that the mortgage lender has already verified and approved your credit and income. Obtaining a preapproval will make your offer more attractive to the seller.
WHAT IS EARNEST MONEY?
Earnest money is a “good faith” deposit submitted with your offer and shows the seller you are serious about purchasing their home. Earnest money is generally a required part of the offer. There is no set amount that is required, but the amount sometimes make a difference in the negotiation process.
WHAT ARE CLOSING COSTS?
Closing cost are charges paid to various entities during the real estate transaction. They can include escrow fees, document preparation fees, and lender fees.
WHAT IS A POINT?
A point is equal to one percent of the loan principal. Some lenders charge points, in addition to interest and fees, at closing.
WHAT IS TITLE INSURANCE?
Title insurance protects against loss from any defects in the legal title, liens against the property or other adverse claims. The lender usually requires title insurance.