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When purchasing a home, a pre-approval and a loan commitment are both important steps in the mortgage process, but they are different.

A pre-approval is a preliminary assessment of a borrower's creditworthiness and ability to qualify for a mortgage. To obtain a pre-approval, the borrower typically provides financial and personal information to a lender, who will then review the information to determine the borrower's credit score, income, debt-to-income ratio, and other factors that could affect their ability to obtain a mortgage. A pre-approval letter provides the borrower with an estimated loan amount they are likely to qualify for and can help demonstrate to sellers that the borrower is a serious buyer.

One thing to remember is that NO…

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Dreaming about your first home purchase but still be undecided on whether to choose an FHA loan or conventional loan? While both are popular choices for those looking for a low down payment, some differences may make one loan a better option than the other. 

This article will give you an idea of how they differ and give you insight as to which loan may work best in your situation.

What is an FHA loan?

An FHA loan is insured by the Federal Housing Administration. Lenient qualifications make it a good choice for those with lower credit scores and those with limited funds for the down payment. 

What is a Conventional loan?

On the other hand, conventional loans are not insured by a government agency and have qualifying terms set by…

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