You have probably heard a lot of misconceptions about mortgage. So here I am to set straight 3 mortgage misconceptions:
1. Pre-qualified is the same as pre-approved.
FACT: There is a big difference between pre-qualification and pre-approval. To be pre-qualified, you only need to provide an overview of your financial history. While on pre-approval, you need to provide official documentation which will then be verified by the lender.
2. Being pre-approved guarantees that you’ll get a home loan.
FACT: No. It just means that there is a chance that you will get approved. You need to be cleared with the underwriting process first.
3. Income is the only thing that will determine how much you can borrow.
FACT: To check your capability to finance the loan, lenders won’t only look at your income. They will also look at other factors such as your credit score.
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