A CLOSED MORTGAGE usually has the lowest interest rate but lacks the flexible features of other mortgage options. Prepayment options are available but are subject to conditions and penalties and these will be discussed with you by your lawyer and your Lender.
The lender can issue a firm commitment once the seller accepts your offer, the home has received a satisfactory appraisal, and your credit has been re-checked.
If all goes well, you've got a mortgage! To help eliminate unwanted surprises, keep these tips in mind:
Make sure a lender's pre-qualification program is underwritten.
Don't divulge your approval amount to a seller.
Be alert. Many lenders use the term "pre-approval", but when you read the fine print, it's really a pre-qualification. If the lender hasn't requested documentation, it's a good bet that you've been pre-qualified rather than pre-approved.
Contact the lender if your financial circumstances change prior to closing. The pre-qualified or pre-approved status may no longer be valid.
A CONVENTIONAL MORTGAGE allows you to borrow up to 75% of the purchase price or 75% of the value of the property, whichever is less. In order to have a Conventional Mortgage, you must pay 25% of the purchase price as a down payment.
Mortgage
