frequently
asked questions |
Save, prepare and research. Bidding wars for homes are becoming more common as demand for houses continues to grow. According to a report in Ladies’ Home Journal, gone are the days of offering 20 percent under the asking price.
In today’s market, it pays to go in with your highest offer — which requires some careful financial planning. |
| Many people are surprised to learn that the best time to look for a mortgage is BEFORE you look for a house. Beginning your adventure with the search for financing gives you plenty of time to pull together records you will need to get a mortgage when you finally find the home you want to buy. It's a big advantage to get familiar with mortgage lenders in your area in the early stages of your house hunting project. There are also two valuable things you can carry away from your visits with lenders that can help make your home search a little easier. |
Pre-Qualification consists of a verbal or written statement of the maximum amount of mortgage you should be able to receive based on the financial information you've provided.
This helps you and your real estate agent narrow your home search to houses available in your price range. There should be no charge for a Pre-Qualification. |
| A Mortgage Pre-Approval is a formal letter from your lender which indicates to a seller and his or her real estate agent that you have had your credit reviewed and are "credit worthy." It also shows that you have been approved up to a certain loan amount.
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Fannie Mae and Freddie Mac will allow as little as 5% down.
The community homebuyer program allows 3% down.
The Farmers home loan program allows zero down, but it is only for specific geographic regions.
Some lenders will do an 80% loan with the seller carrying the other 20%; Therefore allowing you to purchase with nothing down.
FHA will allow roughly 3.5% down, however, all of that 3.5% can be a gift from a family member.
VA is a true 100% loan to value loan, and the seller can pay all the closing costs. This means you could purchase a home with nothing out of your pocket. |
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