Why Get Pre-Qualified?

1. Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and is free.

2. While a "pre-qual" is non-binding to the lender (because the information you provide has not been verified), it does serve as a good indication to potential sellers of your general creditworthiness.

3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.



1. A mortgage agreement that provides for a low interest rate for the first year of the loan, a somewhat higher rate for the second year, and then the full rate for the third and later years. "Unless you are able to re-finance the property after the second year"

2. Benefits To The Buyer - 

  • They can save money up front when purchasing a home.
  • A lower interest rate means a lower monthly payment.
  • They may be able to use the extra cash for other expenses associated with homeownership.
  • If the home is sold before the buydown expires, the unused funds will be applied as a loan principal reduction.


3.  Who qualifies for a 2 1 buydown? 

To get a 2-1 buydown, you must qualify for the mortgage at the full P&I rate. Meaning, you need to qualify based on your ability to pay the actual interest rate. The temporarily lower payments for the first two years do not make mortgage underwriting easier.

4. Is it better to buy down interest rate or put more money down?

 If you are buying a home and have some extra cash to add to your down payment, you can consider buying down the rate. This would lower your payments going forward. This is a particularly good strategy if the seller is willing to pay some closing costs.

5. Will mortgage rates go down in 2024?

Inflation and Fed hikes have pushed mortgage rates up to a 20-year high. 30-year mortgage rates are currently expected to fall to somewhere between 6% and 6.7% in 2024.




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