What does it mean to be "preapproved" for a loan?

When someone is preapproved, the lender has already investigated his creditworthiness, and has established that he can borrow up to a certain amount from the lender. A home-buyer often receives preapproval before making an offer on a house, in order to make his offer more attractive to a seller.

Why is it important to be preapproved for a loan?

When comparing offers to buy a home, a house seller would prefer to consider an offer from someone who has a letter from a lender stating that he is already approved to borrow the amount of the sale price of the house over someone who makes the purchase contingent upon getting a mortgage or financing.

What does it mean to be "prequalified" for a loan?

Prequalification for a loan means the bank or mortgage company has looked at the borrower's income and debt to determine the approximate amount of the loan. It does not mean the borrower has been approved for a loan.

Can adding just a few hundred dollars to my mortgage payment help to reduce my debt?

Yes. You can choose to add an additional sum to your normal monthly mortgage payment to pay down your loan principal. The effect can shave several years off your mortgage, and save you thousands of dollars in interest payments, depending on your loan size, your interest rate, and how many months you have remaining on your mortgage.

How many homes are in foreclosure in the United States?

According to experts at Realtytrac.com, as of March 2014 there are 483,224 bank-owned homes in the United States, with 51% still occupied by the former owner or tenant. This is down from a peak of about one million homes in 2010.

The real estate bubble that precipitated the U.S. recession of 2007-2009 resulted in widespread home foreclo¬sures. Even today, home ownership in the United States is at a low not matched since 1960.

The real estate bubble that precipitated the U.S. recession of 2007-2009 resulted in widespread home foreclosures. Even today, home ownership in the United States is at a low not matched since 1960.

How many people risk home foreclosure?

in 2010, 1.7 million homeowners were notified that they were at risk of defaulting on their loan because of missed payments. This means one in 78 homeowners was at risk.

How many U.S. homes received foreclosure filings in 2010?

According to Realty Trac, more than 3.8 million foreclosure filings—including default notices, scheduled auctions, and bank repossessions—were reported on a record 2.87 million U.S. properties in 2010.

How long does it take for a home to be foreclosed?

Within 15 months after you stop paying your mortgage, your home reverts to the lender.

What states have the highest rate of foreclosure?

Nevada, Arizona, Florida, California, Utah, Georgia, Michigan, Idaho, Illinois, and Colorado have the highest rates of foreclosure.

What does the foreclosure rate mean for American home ownership?

The foreclosure rate means that home ownership most likely will fall to its lowest level since 1960, when 61.9% of American families owned their own homes, and perhaps even lower over the next few years.

 
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