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We realize that the process of getting a mortgage is mentally taxing. More importantly, it can be extremely emotional as you are dealing with your family, your home, and your money - it doesn't get more emotional than that. Our goal is to make your journey easier by not just telling you what we are doing, but educating you as to why we are doing it. 
The Anatomy of a Mortgage
A mortgage payment consists of PITI
P – Principal - The original amount of the money borrowed from a lender.
I – Interest - A fee charged for borrowing money.
T – Taxes - Property taxes paid to your local government.
I – Insurance – Home owners insurance on your property.
Prequalification
You will want to get pre-qualified during your mortgage search. Prequalification isn’t binding but rather it gives you a ballpark idea of what you can afford. The lender analyzes your income, debt and credit history to estimate your maximum loan amount. Combine that with the money you have for a down payment and you have your maximum home price.
The next step is preapproval which verifies your income, debt and credit. Preapproval gives you the following benefits:
- Knowing exactly what you can borrow. You will have an accurate commitment from your lender for the amount you can borrow.
- Credit problem solving. You will know now, instead of while your offer is being evaluated by the buyer if you have any credit issues to be dealt with.
- Stronger negotiating position. Sellers love preapproved buyers. They know your offer will not fall through and will treat you like the proverbial bird in the hand. This can help you negotiate a better price.
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