What is a HARP Mortgage?
Is your current mortgage underwater? Discover how a HARP refinance can help you to refinance your loan and keep your home. What is a HARP mortgage? In response to the number of foreclosures after the housing bubble burst in 2008, the Federal Housing Finance Agency started the Home Affordable Refinance Program (HARP). This program was designed to help homeowners who are current on their mortgage payments but are unable to refinance since the amount owed on the loan is more than the value of their home, known as “underwater.” The HARP program is set to expire at the end of 2016 unless Congress intervenes, but that still leaves plenty of time for eligible homeowners to refinance their homes.
Mortgage Pre-qualification and Pre-approval
PRE-QUALIFICATION - This is an easy first step to show sellers you’re getting serious about buying. In order to get a mortgage pre-qualification letter, a loan officer will make a general assessment of your financial situation. They’ll be able to gauge whether or not you can get a loan and how much money you can get. PRE-APPROVAL - Once you’ve gotten a better idea of your financial picture, you need to get pre-approved. It’s important to time your pre-approval with when you’re ready to buy because a pre-approval letter expires in 60 to 90 days. Pre-approval is a conditional promise from a bank or lender that they are willing to lend to you, and for what amount.