The Importance of Getting Preapproved

Many first time homebuyers mistakenly believe that the first step to buying a home is to find the home they want to live in.  In reality, searching for a home should come only after two important things have been completed:  finding the right real estate agent and getting pre-approved.  Today’s post is about the second step — the all-important pre-approval. Continue reading “The Importance of Getting Preapproved”

Interest Rate vs. APR: What’s the Difference?

When shopping for a new home loan, it’s easy to feel overwhelmed by the terminology that lenders and realtors use to describe various aspects of lending:  PITI, conforming/non-conforming, jumbo, conventional/nonconventional, ARM…  I often tell clients, when in doubt, ask your lender to explain anything and everything to you.  There are no dumb questions in real estate (and in life).

However, a frequent question I come across is what is the difference between an interest rate and an APR (annual percentage rate)? The answer is rather straightforward. Continue reading “Interest Rate vs. APR: What’s the Difference?”