Google
 
Web www.refinance-refinance.net
« Piggyback Mortgage: 103% Financing Option
Prepaying Your Mortgage The Pros and Cons »

Home Loans

Loan Prequalification A Potential Trap
(presented by www.refinance-refinance.net - mortgage lenders)



By Sergio Haros

As with much of the real estate industry, the mortgage industry uses terms that sound great, but really are not what they sound like. The loan prequalification is such a phrase.

If you have shopped for a home, you know all the interesting terms people use to describe their property. A cozy home can be translated to mean the home is essentially a closet with a bathroom. A rustic home often means the place is so decrepit, scientist study it to see if it is breaking the laws of physics by remaining upright. I am sure you have more than a few examples of your own.

In the mortgage world, loan prequalification is an activity and phrase that is interesting. The basic idea is a buyer goes to a lender prior to shopping for a home and attempts to determine what they can borrow. The lender does a cursory interview and maybe looks a paycheck stub. The lender representative then declares that buyer is prequalified for a certain amount. With letter in hand, the buyer heads out to find that unique property that is just right.

(Article continues below)

HOME LOANS ADVERTISEMENT

While this all may sound great, there is a serious problem. A prequalification determination by a lender is not worth the paper it is written on. Anyone can get prequalifed. The lender has really made no determination. All they have done is give you a piece of paper that they hope will get you to come back and actually apply for a loan with them. The bank hasn

===========================================
For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
===========================================

This entry was posted on Thursday, July 20th, 2006 at 5:52 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Comments are closed.