Answers to Frequently Asked Real Estate Questions Continued
What is LTV?
LTV is an abbreviation for "Loan to Value." The LTV is the percentage of a property's value that the lender is willing to finance. The higher the LTV, the lower the down payment. FHA loans are typically 97% LTV, which would call for a 3% down payment.
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What is pre-qualified?
A pre-qualification is a statement by a loan officer that a person appears qualified based on the answers to some questions. None of the information has been verified and neither buyer nor seller should rely on this statement. A pre-approval is more reliable and strengthens the buyer's negotiating position.
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What is pre-approved?
A buyer can be preapproved after they have applied for a loan and had a credit report run. A pre-approval will have some exceptions. The fewer the exceptions, the stronger the preapproval. Remember the preapproval is only as good as the institution issuing it.
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Do you have questions about financing your home purchase? Call or email me - Jackie Martin.
Jackie Martin, Realtor
email: Jackie[at]WeSellStLouis.com
We Sell St. Louis
3424 Missouri Ave.
St. Louis, MO 63118
office: 314-772-HOME (4663)
toll-free: 1-866-971-HOME (4663)
cell: 314-495-4428