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Have students complete the exercise individually as a “mini-test.” Go over the responses as a group.

A note on pre-qualifying for a loan
It is often a good idea to pre-qualify for a loan. That way a buyer will know if he or she is ready to buy a house and how much he or she they can afford to spend. This may also be an advantage in negotiating with a seller who wants to sell his or her house quickly.

 

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Unit 1 : Lesson 3: Your credit report

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Pre-qualifying for a loan

If you are thinking about buying a house in the near future, you may want to talk with a mortgage lender about pre-qualifying for a loan. When you pre-qualify, you give the lender all the information you would need to apply for a loan. The lender will look at your job history and income and then calculate the approximate size of mortgage for which you would qualify. If you are already pre-qualified for a loan, you will have a good idea what prices of houses you will be able to afford. This can be very helpful when you are looking for a house and may help the loan application process go more smoothly if you find a house you would like to buy.

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