The process of acquiring a mortgage is easily understood if home and condo buyers remember these simple mortgage-related terms; qualification, preapproval, approval and lock.

Qualification is a process that investigates your income, assets and current debts to determine if you (and your spouse) can handle the loan payments for some specified amount.

Preapproval is a commitment by a lender to make a loan prior to the identification of a specific property. But remember, pre-approval is conditional, based on a number of factors just prior to closing on the mortgage.

For approval to occur, a specific property (at an appraised value) is identified, and the loan details are finalized.

Lock is a commitment by the lender to a specified interest rate and points. Since locking normally imposes a cost for the lenders, some charge a nonrefundable fee, which may be credited back to the borrower at closing.

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