People can confuse prequalification vs. preapproval for mortgages when they are applying for a loan. However, there are noted differences. For example, to become prequalified, you must give a loan officer income and debt information to determine the loan amount you can manage. Preapproval, on the other hand, requires more information gathering and checking on the part of the lender. In other words, the lender must compile your credit report data as well as determine your debt to income ratio. Preapproval makes it easier for you to shop for … [Read more...] about Understanding the Difference Between Prequalification and Preapproval
Real Estate
Buying a Home with Private Mortgage Insurance and Pay PMI Off Early
If you are new to home buying, you will soon find out that most lending institutions require that loan applicants put 20% down when applying for a mortgage, or you will need private mortgage insurance. Of course, there are exceptions to this rule, of course, as some financial institutions will accept applications even in this turbulent home buying market with 10% down. Go online first and contact a couple brokers or several lenders through a service like LendingTree.com which will find you four mortgage loan offers. Buying a Home With … [Read more...] about Buying a Home with Private Mortgage Insurance and Pay PMI Off Early
How To Evaluate The Rate Of Return On Rental Property
Being a landlord is a great way to build your wealth and increase your net worth. In fact, Money magazine listed becoming a landlord as one of its highest rated ways for the average American citizen to become a millionaire. Even after the housing bubble and credit crisis that hit the United States in 2008, real estate is a great way to increase your wealth, save for retirement, and supplement your income with a new stream. So, how do you go about evaluating if rental real estate is right for you. There are a few things that you need to … [Read more...] about How To Evaluate The Rate Of Return On Rental Property