FREQUENTLY ASKED QUESTIONS
Putting at least 20% down on a home will increase your chances of getting approved for a mortgage at a decent rate, and will allow you to avoid mortgage insurance. But you can put down less than 20%. The minimum down payment required for a house varies depending on the type of mortgage:
- FHA LOANS, require as little as 3.5% down and are backed by the Federal Housing Association.
- VA LOANS, guaranteed by the U.S. Department of Veterans Affairs, usually do not require a down payment. VA loans are for current and veteran military service members and eligible surviving spouses.
- USDA LOANS, backed by the U.S. Department of Agriculture’s Rural Development Program, also have no down payment requirement. USDA loans are for rural and suburban home buyers who meet the program’s income limits and other requirements.
Some conventional mortgages, such as the Fannie Mae and Freddie Mac, require as little as 3% down. Conventional loans are not backed by the government, but follow the down payment guidelines set by the government-sponsored enterprises Fannie Mae and Freddie Mac.
Down payment requirements can also vary by lender and the borrower’s credit history. The minimum down payment for an FHA loan is just 3.5% with a credit score of 580 or higher, for example, but the minimum is 10% with a credit score of 500 to 579.
Selling your home is a big decision! To assist you with all aspects of selling your home, we highly recommend that you hire a real estate agent who will provide you with a home valuation and a comprehensive marketing strategy to get your home sold as quickly as possible.
A Comparative Market Analysis is a comprehensive report we provide to clients who are thinking about selling, detailing the recent area market activity using the most up to date statistics. It provides the basis for an accurate suggested listing price designed to sell your home for the best price the market will bear.
It makes sense to have your home looking good as possible when you are looking to sell. An agent will be gladly assist you with recommendations of fixes or repairs that will make your home more saleable. You will also want to do common-sense prep such as de-cluttering and cleaning. Hiring a professional staging company isn’t necessary in most cases, however, if you wish to use a staging service to sell your home, we can point you in the right direction.
A seller’s market is when conditions indicate that there are more real estate buyers in the market than there are sellers. When demand is higher than the supply, home prices increase, which benefits sellers.
In our free expert home evaluation, we’ll take several factors into account such as comparable sales in the neighbourhood, similar available and sold properties, and your home’s distinctive features to arrive at an opinion of value supported by data and our knowledge of your neighbourhood. Together we’ll decide on a price in this range of values that will give your home a competitive edge.
There are numerous nitty-gritty details to selling a home. Hiring a professional Real Estate Agent not only relieves you of the stress and pressure of those details, but you’ll find yourself reaping many more benefits. Here are just a few:
- An agent has the pricing expertise to make sure you get the right price for your home.
- Listing with an agent, enters your home into the MLS which enhances your reach to potential buyers.
- An agent will take care of the advertising of your home.
- An agent has the sales expertise to sell your home to potential buyers.
- An agent will help in the writing and negotiations of legal contracts.
- An agent will help you through every step of the process so you won’t miss any details.
Absolutely! For most, buying a home require obtaining a mortgage. Going through the preapproval process not only gives you parameters for shopping for your home, but it also shows sellers that a lender has already vetted you and will lend you money.
The steps for getting pre-approved for a home loan include sharing detailed financial information about your income and debt, and undergoing a credit check. Once you’re approved, you’ll have a solid estimate that real estate agents and sellers can use to help you find your dream home.
PMI or Private Mortgage Insurance is provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. It can make a big difference in how quickly your mortgage loan is approved and how much money you spend on a down payment. It is required if the loan amount is more than 80% of the home’s value.
This insurance benefits lenders and investor, but it also helps homebuyers too. Without mortgage insurance, we would need to require a down payment of at least 20% of the loan amount. We understand that even if you have enough money for a large down payment, you may prefer to use it for other purposes.
Several variables are considered when you apply for a mortgage, your credit score is an important one. Generally, the better your credit score is, the lower your interest rate will be. Your credit score, however is not the only factor considered. Other variables such as your debt-to-income ratio and downpayment amount are also important.
Even though there is no “official” minimum credit score, it will be easier to obtain a mortgage if your score is higher—and the terms will likely be better, too.