According to the Consumer Finance Protection Bureau, there is often not a lot of difference between pre-approval and pre-qualification. Sometimes, lenders use the terms “pre-qualification” and “pre-approval” interchangeably. And different lenders might have different definitions for each. But generally, here’s how the two may differ.

Pre-qualification is often seen as the first step in the mortgage process, and pre-approval is the next step. With pre-qualification, you’ll supply an overview of your financial history to the lender, including income, assets, debts, and credit score. The lender will review this information to give you an estimate of what you would qualify for. Mortgage pre-qualification doesn’t always require documentation of your financial history; it can often be self-reported.

Mortgage pre-approval is very similar, but it usually requires documentation and verification of your income, assets, and debts. And it will often require a credit check, which will result in a hard inquiry on your credit report.

The answer is no!  The percentage of homes that sell as a result of an open house is less than 2%.

How do homes get sold then if they are not being sold at open houses? When selling a home, you want there to be private showings. The majority of homes are sold when a buyer has a Realtor/Agent, requests an appointment, and tours your home privately. The crowd that an open house attracts is more than likely not going to be the crowd that is going to purchase the home. Would you want people walking through your home that cannot afford to buy it? Of course not! It’s also next to impossible to screen open house attendees to ensure they are qualified to purchase the home. If your home is still occupied during an open house it may, although rare, increase your exposure to possible theft and other security issues. When a licensed agent has a private showing of your home with a potential buyer, that agent must log in to an electronic lockbox before entering your home. That information is recorded and given to your listing agent immediately. Should there be a problem, and they are statistically very rare, the recorded info will help in finding a source of the issue.

ABSOLUTELY! Home inspections are used to provide an opportunity for a buyer to identify any major issues with a home prior to closing. Your first clue that a home inspection is important is that it is used as a contingency in your contract with the seller.

In California the RPA/Residential Purchase Agreement defaults to protect the buyer for 17 to 21 days. During this period if for any reason you decide not to move forward with the sale you can back out. You are however still responsible for any inspection fees for services you ordered and an appraisal fee if it was completed by your lender. You cannot be “forced” to buy a property. Once you have completed your inspections and appraisal and want to move forward, you will need to sign a “Release of Contingency” document that states you are ok with the property, it’s condition and are confident with your financing to close the escrow. Should some problem or life event arise that makes the sale not possible after this you can still pull out of the sale. You will however now be in breach of your contract and the seller may be entitled to keeping all or part of your earnest money deposit to cover monetary losses they have accrued.

In most cases the property owner pays the real estate commissions of both the listing agent and the buyer’s/selling agent from the proceeds of the sale.

A home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower’s equity in his/her house.

A jumbo loan is a home loan for more than the conforming limit set by Fannie Mae and Freddie Mac. Interest rates on jumbo loans are comparable to rates on conforming loans. One main reason: Lending standards for jumbo loans tend to be stricter, with larger down payments required.

A condominium, or condo, is a building or community of buildings in which units are owned by individuals, rather than a landlord.

A townhome is defined as conjoined units that are owned by individual tenants. They are architecturally similar to row houses in that owners usually share at least one or more walls.