Minimum Down Payment
The very first step of the home buying process is to get a pre-approval letter from a lender stating how much you are qualified for. It’s important to ask your potential lenders some questions to make sure they are a good fit for you.
Don’t understand something your lender says? Stop and ask for clarification. This is your home buying journey, and you deserve to understand the process every step of the way.
A pre-approval, typically, is only valid for 30-90 days, so while you can start talking to lenders, you’ll want to wait on getting that pre-approval letter until you’re ready to buy.
Minimum Down Payment
3%
Conventional
3.5%
FHA
0%
VA
Questions to Ask Lenders
Your lender should then walk you through the pros and cons of multiple loans based on your unique situation.
Depending on your area, the type of property or your circumstances, you may be eligible. A good lender should know what’s available to you.
This question is arguably the most important! Check with the lender about a prepayment penalty. That is, if you pay off the mortgage early (by selling or refinancing). The answer should be no!
APR tells you a mortgage’s true cost. The APR includes interest rate, points and fees charged by the lender, and lets you accurately compare mortgage offers.
If so, for how long? Do you charge to lock in a rate?
Are they a part of my loan, or will I pay them in cash at closing? 3-6% of your loan value is typical.
If you put down less than 20% on a conventional loan, it’s likely you will. Ask the lender if it’s a one-time or ongoing fee.
Trusted Lenders
Gary Burmeister
First Coast Mortgage Funding, NMLS #252082
Purchasing a home should be exciting, yet it can be stressful. Eliminating that stress requires the insight and support of an experienced mortgage professional.