![]() 881-960 (Good) – A credit score in this range means you are still eligible for most but not all of the ideal mortgage deals.961-999 (Excellent) – This means that you are more than qualified to afford the best mortgage deals with lower interest rates.The credit score ranges from 0-999 and are divided as follows: ![]() As mentioned, from your financial report, a credit score will be extracted and would serve as a basis to identify a mortgage deal corresponding to your personal financial status or if you even are qualified for one. It basically assesses your financial report to determine whether or not you are eligible for the loan you wish to receive, which mortgage deal best suits your financial status and ultimately, if you have the financial capacity of repaying the monthly installments throughout the whole period of the amortized mortgage. This phase of the process involves a thorough evaluation of income and expenses statements, asset lists, credit history, past transactions, verify your employment history and your credit score. Hence, you must move to the second phase of the process, the Pre-Approval which is advisable for you to proceed immediately rather than having to go through the Pre-Qualification process especially if you are serious about homeownership and purchasing your own property. In this stage, the evaluation will not be as thorough in the assessment of your financial reports because it does not usually involve an extensive read of your asset list and income verification but they should be able to provide you with a rough estimate of how much money you can afford to borrow. Mortgage Pre-Qualificationįor the first stage of the mortgage process, a mortgage lender, usually a bank, is required to run through your credit to determine that you meet the universal guidelines for applying for a mortgage loan. This section of the article will be putting together the phases involved when you apply for a mortgage loan so as you get the general gist of what you will be going through and what you can prepare for to get the best mortgage deals with the lowest interest rates. There are steps one must go through to acquire the requested amount of money before a homeowner can legitimately be referred to as such. Like most things, to purchase a home requires a process that can pose to be a challenging experience if you are unfamiliar with the process of applying for a mortgage loan. We could then say that all contracts are agreements but not all agreements are contracts. On the other hand, a contract is a formal and binding agreement that legally enforces the parties involved to adhere to the terms and conditions agreed upon in the agreement. It is often informal and unwritten meaning it can also be exchanged verbally and does not require adherence from both parties as it generally does not legally bind them to. However, this is not the same for most cases and we figure it should pay to at least distinguish the two for legalities sake and so as the lines between the terms agreement and contract don’t get muddied further.Īn agreement is simply an understanding that the parties involved have reached upon. The terms and agreement and contract are often used interchangeably and understandably so because there is only a minimal distinction between the two but for the case between a Mortgage Agreement and a Mortgage Contract, as mentioned, a Mortgage Agreement sets the terms of the contract and can function as the contract itself once agreed by both parties and signed upon. This then would require the lender to offer the borrower’s request for a loan to purchase real estate and finally live their dream of being a homeowner. While most agreements are informal and have legal force, a Mortgage Agreement could effectively function or at least set the grounds for your contract that once signed will legally bind the parties to adhere to the arrangement.
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