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How much down payment will I need?
The minimum down payment required depends on the mortgage
program you select. Usually at least 3% is required.
If you put down less than 20% on your rate may be subject
to Private Mortgage Insurance, an additional cost.
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When should I start shopping for a mortgage and how
do I know what I can afford?
The best time to look for a mortgage is before you look
for a house. This way you'll know exactly the amount
of money you can borrow. You can use the calculators
on this site to help you determine these numbers as
well as your estimated monthly payments. Get pre-approved
for a mortgage before shopping for a home and you'll
maximize your negotiating power.
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Do I need to sell my existing home before I apply
for a new mortgage loan?
Absolutely not! You can apply for a new mortgage loan
before you sell your current home. However, depending
on your income and debt levels, you may need to sell
your current home before you can close on your new home.
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Why is the Annual Percentage Rate (APR) different
from the interest rate?
The annual percentage rate is intended to reflect the
total cost of your mortgage loan. To calculate the APR,
lenders consider the interest rate on your mortgage
loan, the term of the loan, and other loan fees such
as closing costs, points, etc. Your monthly payment
is calculated based on the mortgage note rate, not the
APR. The APR will be higher than your interest rate,
especially if you are paying any points.
To be used as a valid evaluation tool the APR must be
loan specific. The actual APR will show up on the Truth-in-Lending
statement that you will see once you have submitted
your information and reserved your funds. When comparing
loan programs based on APR make sure you ask each lender
their criteria for determining the APR.
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Can I be pre-approved for a loan if
I have credit problems?
If you are concerned about your credit, or have other
questions about credit, discuss it with your lender. When you're not quite in a position to purchase a home, they often can advise you where to begin to build a new credit rating.
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