Q: I have an excellent credit score and no savings. Multiple lenders have pre-qualified me for more than I can afford. They do not charge PMI, but finance two loans, one for 80 percent and another at a much higher rate for 20 percent of the purchase price.

They also say pre-qualification and pre-approval are the same. Is this true?

A: For some lenders, pre-qualification and pre-approvals are the same. What you need to get is a written commitment to fund your 80/20 loan (also known as a piggy-back loan) provided the home appraises out in value.

You’re looking for the written commitment. The rest is industry jargon.

Good luck, and remember, just because the lender says you can afford the payments doesn’t mean it really works in your life or for your budget.