What’s the difference between pre-approval and pre-authorization?
The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provied you with a pre-qualifier letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.
What is your best interest rate?
This is one of the most frequently asked inquiries. Rates vary from 0% to very high. Every borrowing situation is different and certain information is required before this can be answered intelligently. (What is money being used for? What kind of term are you looking for? What priveleges do you require? Etc.) It pays to consult a professional to get this infomation.
How much can I afford?
This is a very popular question. One new home buyers especially want to know. A general rule of thumb is 30% gross debt service (principal, interest & taxes) and 40% total debt services. This is only a rule of thumb and every situation is different. Speak to a professional to get the right answer.
How long will it take?
This also can be quite variable. It depends on the amount, reason, client’s credit, etc. The answer is anywhere from a few hours to a few weeks.