Mortgage Insight: A Guide to Home Buying

Blog_Mortgage Insight
By now, you have become familiar with our new blog series Mortgage Insight, where Home Team Mortgage —  a team of knowledgeable and seasoned mortgage professionals — offers tips on purchasing a home or refinancing a pre-existing mortgage.


At the end of each month, HTM will present a Q & A in relation to the home buying process. This week, Alex Parker — Vice President of Sales — will shed some light on a few key factors that go into purchasing a home below:


Q: In order to purchase a home, does my credit score have to be good?


A: One of the biggest misconceptions by most borrowers is that you have to have a perfect credit score to buy a house. However, this isn’t the case. We have loans that allow for a credit score of 600. It is important to note, however, the better your credit score is, the better the interest rate will be.



Q: What is the difference between a pre-qualification and a pre-approval?


A: A pre-qualification means you’ve spoken to a lender and have told them what you “think” your credit score, income and assets are. Pre-qualification letters specifically state that the lender has not verified any of the borrowers qualifying documents. A pre-approval means you have provided your pay stubs, W-2 forms, tax returns and bank statements to the lender and, in return, they have pulled and reviewed your credit history.



Q: At what point should I look into pre-approval for a home?


A: The pre-approval process should start before you start looking for a home. Most of the time, sellers will turn the other way if you have not been pre-approved, especially in today’s market, where sellers are receiving multiple offers on a home. Time is critical in today’s market and sometimes the best way to win a deal is to offer a short closing time. However, you can’t close quickly unless your lender has pre-approved you.



For 19 years, Home Team Mortgage Company has been committed to building long lasting relationships by providing exceptional service with competitive rates. With an office located in each Ebby Halliday Real Estate branch, HTM loan officers offer the convenience of one-stop shopping, coupled with expertise to ensure peace of mind for borrowers and agents alike.


For all your mortgage questions and needs, contact Home Team Mortgage Company, an Ebby Halliday affiliate.