More on Mortgages: Understanding the Underwriting Process

Even though it's probably the largest purchase they'll ever make, few consumers take the time to really go "behind the scenes" to more fully understand the complex world of mortgage lending. Learning the terms and working to understand your mortgage can help save you time, money, and a whole lot of headaches.

Qualifying for a Mortgage

Whether you're looking for a first mortgage on a new home, to refinance an existing mortgage, or take out a second mortgage, the interest rate you'll be offered depends on the same factors:

The Mysteries of Mortgages: Unveiled

With home ownership in the United States now approaching 70% of all households, the chances are good that you've either taken out a mortgage in the past or have one now. However, many homebuyers don't research and act as carefully as one might imagine given the amount of money borrowed and the huge difference even a few basis points (one one-hundredth of a percentage point) can make over a lengthy loan.

Instead, homebuyers often search for the home they want, then apply for a mortgage and hope for the best. A far better approach is to find out how much mortgage you can qualify for, then look at homes you know are in your price range. Known as "prequalification," having this piece of paper in your hand can also set you apart as a serious, committed buyer in hot real estate markets where properties are fetching multiple offers.