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Today I'm back with Sandy Davis, and she's here to answer some more questions about the mortgage process. She's going to help keep everyone informed on what is going on in the mortgage market, and I have a few specific questions that I'll be asking her.
How long does the mortgage process take?
From start to finish, 45 days is a realistic timeline from the time you sign your purchase contract until you close the loan. I've closed loans in 29 days, but 45 days is the standard if the borrower has the correct paperwork and is eager to complete the process.
Pre-Approval vs. Pre-qualification, what's the difference?
These are two very different designations, and a pre-approval is much more desirable. A pre-approval scrutinizes your credit and other factors much more than a pre-qualification does, and home sellers would always prefer an approval over a letter of qualification. The pre-approval is highly recommended by lenders and real estate agents alike, and it can also help to streamline the mortgage process.
What's the difference between an interest rate and an APR?
Your interest rate is your note rate, and it's what your monthly payments are calculated from. The APR is the cost of your credit as a yearly rate, it's essentially taking into account the closing costs that you had to pay. Your mortgage payment is not based on your APR, it's based on the note rate, which is the interest rate of the mortgage.
Hopefully this information has been useful to you. If you have any further questions, please don't hesitate to contact Sandy or anyone on my team. We look forward to helping you!
From start to finish, 45 days is a realistic timeline from the time you sign your purchase contract until you close the loan. I've closed loans in 29 days, but 45 days is the standard if the borrower has the correct paperwork and is eager to complete the process.
Pre-Approval vs. Pre-qualification, what's the difference?
These are two very different designations, and a pre-approval is much more desirable. A pre-approval scrutinizes your credit and other factors much more than a pre-qualification does, and home sellers would always prefer an approval over a letter of qualification. The pre-approval is highly recommended by lenders and real estate agents alike, and it can also help to streamline the mortgage process.
What's the difference between an interest rate and an APR?
Your interest rate is your note rate, and it's what your monthly payments are calculated from. The APR is the cost of your credit as a yearly rate, it's essentially taking into account the closing costs that you had to pay. Your mortgage payment is not based on your APR, it's based on the note rate, which is the interest rate of the mortgage.
Hopefully this information has been useful to you. If you have any further questions, please don't hesitate to contact Sandy or anyone on my team. We look forward to helping you!
Sandy Davis
Senior Loan Officer
NJ Lenders Corp.
102 Chestnut Ridge Road | Suite 200 | Montvale, NJ 07645
E-mail: sdavis@formanteam.com
Phone: 201.505.8295 | Fax: 201.591.7965
Direct/Cell: 973-670-9702
NMLS 172843
