Mortgage Basics
1. What Is a Residential Mortgage to Buy a Home or Refinance?
A residential mortgage is a loan used to purchase or refinance a residential property. The home or condo you
purchase is the collateral for the mortgage (the money the lender is loaning you).
A mortgage payment typically includes principal, interest, taxes, and insurance.
How It Works: Buy a Home or Refinance → Obtain a Mortgage Loan → Make Monthly Payments → Build
Homeownership & Equity.
2. What Is the Difference Between a Pre-Qualification and a Pre-Approval?
Pre-Qualification: Estimate of buying power, information not verified, starting point.
Pre-Approval: Documentation reviewed, greater certainty, ready to shop confidently.
A pre-approval generally requires supporting documentation such as pay stubs, W-2s, and bank statements.
3. How Long Does It Take to Get a Mortgage?
The timing depends on how quickly a home is found and an offer is accepted. After acceptance, documentation is
reviewed, the appraisal is ordered, and the lender works toward final approval and closing. The average closing though is 30 days from accepted offer with some closing in as little as two weeks.