Pre-Qualification vs. Pre-Approval
These terms are often used interchangeably, but they may not mean the same thing.
A pre-qualification is generally an initial estimate based primarily on the financial information you provide. It can be a useful starting point, but the lender may not have verified your income, assets, credit, employment, or other important details.
A complete pre-approval typically involves a more detailed review of your finances and supporting documentation. That additional review gives you a clearer understanding of your buying power and can give a seller greater confidence in your offer.
Not every lender follows the same process, so it is worth asking exactly what has been reviewed before relying on a pre-approval letter.
Estimate Your Payment
When setting your home-buying budget, it is important to look beyond the purchase price and monthly principal and interest. Your actual housing expense may include several additional costs, and those costs can vary significantly depending on the property, location, loan program, and amount of your down payment.
Your estimated monthly payment may include:
Property taxes
Homeowners insurance
Mortgage insurance
HOA dues
Special assessments
Flood insurance or other property-specific coverage
You should also leave room in your overall budget for utilities, routine maintenance, and future repairs. These expenses may not be included in your mortgage payment, but they are still part of the true cost of owning a home. A lower-priced property with high taxes, insurance, or HOA dues could ultimately cost more each month than a more expensive home with lower ongoing expenses.
Use the calculator below to explore how changes in the purchase price, down payment, interest rate, taxes, insurance, and HOA dues may affect your estimated payment. The results are a helpful starting point, but they are not a loan quote or guarantee.
To speak with a licensed mortgage professional for a personalized estimate based on your finances, current rates, and loan options, just get in touch!
Estimate Your Monthly Payment
Estimate your mortgage payment, including the principal and interest, taxes, insurance, HOA, and Private Mortgage Insurance.
Price
Annual Tax
Loan Term (Years)
Down Payment %
Interest Rate %
Monthly HOA
Monthly Insurance
$3,198.20
Estimated Monthly Payment
Principal
$2,398.20
(75.0%)Taxes
$500.00
(15.6%)Private Mortgage Insurance (PMI)
$0.00
(0.0%)HOA
$100.00
(3.1%)Insurance
$200.00
(6.3%)Let’s Talk About Your Financing Options
You don't need to understand every loan program or have all your paperwork organized before contacting us.
Whether you want to work with Mortgage Trust, continue with your own lender, request an independent recommendation, or simply ask a few questions, we will help you identify a sensible next step.
