What is the difference between Pre-Qualification VS Pre-Approval?
A Pre-Qualification is used to lure you in
A Pre-Approval happens after you have shown documentation (Tax returns, W2s)
Cornerstone goes further with an approach called the Diamond Approval. The Diamond Approval is when a Loan Officer takes a full file has it ran through Underwriting and an Underwriter reviews the file and gives a full approval on the Diamond process. It is important to go beyond a pre-approval because by the time a file can get in to Underwriting things can change with your credit, income, tax return issues, etc…
Heath Keller, a Senior Loan Officer at Cornerstone Mortgage joins Doug on todays show to shed light on what the differences are between a Mortgage Broker, Mortgage Banker, and Banks. Heath also gives insight on why he chose to work for Cornerstone.
Doug & Tammie talk the top ten healthiest zip codes in our area, is one of them yours? Check out the other 80 to see how you rank. Plus, Doug answers a listeners question, how intense do I really have to be with my budget?
Doug explains what a big, long mortgage is and what the advantages of having one are on today’s show.
1. Your mortgage doesn’t affect your home’s value.
2. A mortgage won’t stop you from building equity in the house.
3. A mortgage is cheap money.
4. Your mortgage interest is tax-deductible.
5. Mortgage interest is tax-favorable.
6. Mortgage payments get easier over time.
7. Mortgages allow you to sell without selling.
8. Mortgages allow you to invest more money and to invest it more quickly.
9. Mortgages allow you to create more wealth than you otherwise would.
10. Mortgages give you greater liquidity and flexibility.
11. You’ll never get rid of your monthly payment, no matter how hard you try.
According to the RealtyTrac report, home price appreciation is outpacing wage growth in 76% of U.S. housing markets in the last two years. RealtyTrac showed that nationwide home price appreciation is outpacing wage growth by a 13:1 ratio in the same time period.
What this would mean is that housing prices would become unaffordable again, but is that really the case? Doug digs deeper into these numbers to analyze how they will affect you.