What is a mortgage and how does it work?

What is a mortgage and how does it work?

A mortgage is a loan specifically for purchasing property. You borrow money from a lender and agree to pay it back over time, usually with interest.

What are the different types of mortgages available?

There are several types of mortgages, including fixed-rate, adjustable-rate, interest-only, and FHA loans, each with its own terms and conditions.

How do I qualify for a mortgage?

To qualify for a mortgage, lenders typically look at your credit score, income, debt-to-income ratio, and employment history.

What is the difference between pre-approval and pre-qualification?

Pre-qualification is an estimate of how much you can borrow based on your financial information, while pre-approval is a more formal process that involves a lender verifying your financial details.

What should I consider before taking out a mortgage?

Consider your budget, the total cost of the loan, interest rates, loan terms, and your long-term financial goals before taking out a mortgage.