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Pre-qualification is an initial evaluation based on information you provide to a lender. It's a quick, informal process to give you an estimate of how much you might be able to borrow. Pre-approval, on the other hand, is a more in-depth process. The lender will verify your financial information and credit, and you’ll get a conditional commitment for a loan amount. Pre-approval strengthens your offer when buying a home, as it shows sellers that you are a serious buyer.

There are several mortgage programs available, and the best one for you depends on your financial situation:

Conventional Loans: Standard home financing options often requiring a solid credit history and stable income, offering flexible terms and competitive interest rates for buyers with stronger credit profiles.

FHA Loans: Home loans designed for buyers with smaller down payments or lower credit scores, making homeownership more accessible with flexible qualification standards.

VA Loans: Home loans for eligible veterans and active-duty service members, offering benefits like no down payment and no private mortgage insurance.

USDA Loans: For buyers in rural areas, offering low or no down payment.

Jumbo Loans: Mortgages exceeding conventional loan limits, used to finance high-value properties, typically requiring higher credit scores and larger down payments.

Adjustable Rate Mortgage (ARM): A mortgage with an interest rate that may change periodically, based on market conditions, which can lower or raise monthly payments.

Reverse Mortgage: A loan for homeowners 62 or older, allowing them to convert home equity into cash without monthly payments, with repayment due when they move or sell the home.

Second Home: Used to finance vacation or part-time residences. These loans typically require strong credit, a down payment of at least 10%, and proof the home won't be rented out.

Investment Property: For properties purchased to generate rental income or resale profit. They usually require higher credit scores, larger down payments (15–25%), and come with higher interest rates.

Non QM: Non-Qualified Mortgages cater to borrowers with unique financial situations, such as self-employed individuals. They allow alternative income verification methods but come with higher rates and fees.

Discuss your situation with your lender to determine which program suits you best.

The down payment required depends on the type of loan you are pursuing. Conventional loans typically require at least 3% to 20% of the home's price. FHA loans require as little as 3.5%, while VA and USDA loans can offer options with 0% down. However, putting down more may help you secure better terms and lower your monthly payments.

Down payment assistant programs are available, contact your MSFG professionals for details.

The mortgage process typically takes about 10 to 30 days from the time you apply to closing. However, this timeline can vary depending on several factors such as how quickly you provide necessary documentation, the type of loan, and the current market conditions. Working closely with your lender and being proactive in submitting documents can help expedite the process.