A home mortgage is a loan used to purchase a home, where the property itself serves as collateral for the loan. The borrower makes monthly payments that typically cover both the principal and the interest until the loan is paid off. Understanding how mortgages work can help you make informed decisions about homeownership and financing options.

There are several types of home mortgages, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, and jumbo loans. Each type has different terms and conditions, making it important to choose the one that best fits your financial situation and long-term goals.

To qualify for a home mortgage, lenders typically look at factors such as your credit score, income, debt-to-income ratio, and employment history. It’s important to prepare and improve these factors before applying to increase your chances of getting approved for a mortgage with favorable terms.

Pre-qualification is an initial assessment of your financial situation to estimate how much you might be able to borrow, while pre-approval is a more formal process that involves verifying your financial information and creditworthiness. Pre-approval gives you a more accurate picture of the loan amount you can receive and strengthens your position as a serious buyer.