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

The pre-approval process is much more complete than pre-qualification, the loan officer asks you a few questions and provides you with a prequalification. Pre-approval requires documentation of income, job status, etc. It requires all of the steps of a full approval, except for the appraisal and title search.

What is the difference between a mortgage broker and a lender?

A Mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan application. A broker is in charge of ordering all services such as appraisals, title work, and surveys. The lender "underwrites" the loan, which means deciding whether or not you are approved.

What is a full documented loan?

A "full doc" loan verifies income and assets. You can do this by providing pay stubs and bank statements. We can also contact your employer and bank and get verification from them.

When does it make sense to refinance?

Usually people refinance to save money by obtaining a lower interest rate or by reducing the term of the loan. You can also refinance to change an adjustable rate to a fixed rate. Another reason to refinance is to consolidate debts

What is a Good Faith Estimate?

A "GFE" is a list of estimated settlement charges that the borrower has to pay. Usually this is paid at closing.

What are other types of loans?

Besides the "full doc" loans, brokers offer other types of loans. One type is the stated income/stated assets. This is where the income and the assets are stated and the only documentation needed is the job. There is also a stated income/verified assets program. This is where the income is stated and the assets are verified by bank statements or a verification of deposit. These type loans are usually used for 1099 employees or self employed employees.