Darren Ahearn
Darren Ahearn
240-317-2722240-317-2722

Frequently Asked Mortgage Questions

Frequently Asked Mortgage Questions

Does the term “amortization” leave you perplexed? Are you unsure how preapproval differs from prequalification? If so, you’re not alone. Here are some mortgage basics to help you become more familiar with the process.

What’s the difference between prequalification and preapproval?
Getting prequalified is often the first step when searching for a home. You supply basic financial information, such as your income, assets and debts, and the lender then provides a preliminary estimate of the amount for which you may qualify.

Preapproval involves an in-depth look at your finances and usually requires an application fee, but this process brings you closer to determining your potential interest rate and monthly payment. Being preapproved also puts you in a better position in a competitive market because it shows you have your finances in order.

What is amortization?
Amortization is the process of paying off a home loan’s principal and interest over time within a consistent, planned repayment schedule. In the beginning, a large portion of each payment goes toward interest, but as the loan matures, larger amounts go toward paying down the principal.

What types of loans are there?
Fixed and adjustable rate mortgages operate as their respective names imply. The former has a rate that stays the same for the life of the loan. The latter’s rate may start low, but it can increase after a predetermined period or depending on market conditions.

Government-guaranteed mortgages include FHA and VA loans. These are usually easier to qualify for and typically require lower down payments than other types of loans.

About Darren Ahearn

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Darren Ahearn

darrenahearn@gmail.com

7210 Corporate Court Suite B, Frederick, MD 21703

240-317-2722240-317-2722 main

240 344 1713240 344 1713 office

240 344 1713240 344 1713 mobile

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7210 Corporate Ct. Suite B Frederick, MD. 21703

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Community Events

LeTip of Frederick meeting

LeTip of Frederick (Business Networking)

Hello All, We will be meeting again at 7:16AM at IHOP! If all goes well, hopefully this will be our meeting place for the foreseeable future. Please arrive no later than 7am to allow time for mingling and ordering your coffee/breakfast. I look...

Meet for informal chess!

Frederick Chess Club

Come joins us for informal games at the Frederick Coffee Company & Cafe, 100 N East St, Frederick, MD 21701

Free Yoga at Shockley Honda

Free Yoga at Shockley Honda

Join Us for Free Yoga at Shockley Honda Every Wednesday at 6:30pm. The class is for ALL Levels. Mats will be provided!