Pre-approved mortgage: How-to and advantages | HSBC
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The two most common types of mortgages are fixed rate and adjustable rate.
A fixed-rate mortgage ensures that your monthly principal and interest payment will be the same throughout the life of the loan. This is because the interest rate stays the same for the entire term of the loan.
An adjustable-rate mortgage (ARM) offers the advantage of an initially lower interest rate. Changes in the interest rate at the predetermined change date(s) will depend upon the state of the economy, since the adjustments are tied to an index (such as the U.S. Prime Rate or the one-year London Interbank Offered Rate, more commonly referred to as LIBOR) that changes based upon economic factors. The three factors that will influence your monthly mortgage payment in an ARM at each change date are the index, the margin and the number of years to the maturity date.
When you're ready to buy a home, consider the advantages you'll have with an HSBC Pre-Approved Mortgage.1
- A written 90-day commitment
- Additional leverage when negotiating with a seller with an approved mortgage amount in hand
- The comfort of knowing exactly how much home you can afford
- The security of knowing you'll receive a competitive rate2
Your pre-approval also includes all the necessary credit and information checks, so it's a real approval. And best of all, there are absolutely no up-front fees3, so you can shop for your new home without any unnecessary hassles or obligations.
1 Final mortgage approval is subject to receipt of a satisfactory purchase contract by commitment expiration date, satisfactory appraisal and title report and completion of all conditions stated in your commitment letter.
2The interest rate is not guaranteed until the pre-approval is converted to a loan application, which must include the identification of a property. You may then elect to lock the interest rate at any time from the date of application until 10 days prior to closing.
3Credit report, appraisal fees and/or application fee (if applicable) are collected when a purchase contract is submitted. Standard processing and third party fees will be collected at loan closing.
Mortgage and home equity products offered in the U.S. by HSBC Bank USA, N.A..Subject to credit approval. Borrowers must meet program qualifications. Programs are subject to change. Geographic and other restrictions may apply. Discounts can be cancelled or are subject to change at anytime and cannot be combined with any other offer or discount.
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