FAQ

A pre-approval occurs when a lender reviews your financial information, including income, assets, debts, and credit history, and issues a conditional letter stating the maximum loan amount you may qualify for. Unlike pre-qualification, which is based on self-reported information, pre-approval involves document verification and a credit check, making it a stronger indication of your ability to secure financing.

A good-faith deposit made by the buyer showing you’re serious. It is applied towards your purchase at closing.

An appraisal is a professional, independent opinion of a home’s value done by a licensed appraiser. It is usually required by the lender during a home purchase.

Home insurance is a type of coverage that protects your home, belongings, and liability in case of damage or accidents.

A contingency is a condition written into a purchase contract that must be met before the sale can move forward.

Closing costs are fees beyond the purchase price. For example, lender fees, title insurance, taxes and escrow costs.