Mortgage Basics FAQ

Questions Are low down payment options available for buyers who can't afford a 20% down payment? What is private mortgage insurance (PMI)? What kinds of government loans are available to homebuyers? Does it make sense to pay more points for a lower interest rate? What financial documentation will I need

Qualifying for a Mortgage

Don't start house hunting until you seriously consider how much you can afford to pay. A little advance planning will save you time and money later, because you won't bid on unattainable houses or apply for loans that are out of your ballpark -- or will get you into financial trouble later.

How Fast Can Home Buyers Improve Their Credit Score?

When people set out to buy a home, they often start by checking out real estate ads and open houses, and taking a look into their bank accounts to see whether they can muster up anything close to

Five Reasons to Make a Large Down Payment

If you are lucky enough to have the financial wherewithal to make a down payment on a home that’s greater than the traditional 20%, the question becomes, should you do so? In fact, there are many benefits to making a larger-than usual down payment, as follows: No PMI premiums. If you at least pay 20%

Stricter Mortgage Requirements for Homebuyers

New Truth in Lending rules approved in 2008 by the Federal Reserve should foster more responsible mortgage lending and give consumers additional protection from predatory mortgages. The combination of tougher regulations and stronger consumer rights are designed to help prevent a future credit-based housing crisis, but consumers must also demonstrate greater responsibility when it comes to borrowing for a home.

Where to Shop for a Mortgage

You can save real money if you carefully shop for a mortgage. Even a one-quarter percentage point difference in interest rates can mean savings of thousands of dollars over the life of the loan. Loan terms change frequently, so it's good to compare at least a half-dozen lenders -- or to get the help of an experienced mortgage broker, who can help you sift through the latest offerings.

Ten Things You Should Do Before Shopping for a Mortgage

Finding out whether you're a good credit risk, researching mortgage options, and more.

Five Steps You Need to Take When You Apply for a Mortgage

A systematic breakdown of the key tasks involved in obtaining a home mortgage loan.

How to Find An Affordable Home Mortgage Loan

With a little advance planning, you can significantly increase your changes of finding and qualifying for an affordable loan.

How to Choose and Work With a Mortgage Broker

The majority of homebuyers get their loans through a mortgage broker—a professional who’s in the business of compiling and filtering through the options for you. A mortgage broker acts as your agent to “shop lenders” for the best possible loan terms, given your financial situation and goals.

Mortgage Broker Interview Questionnaire: Download PDF

For many homebuyers, getting the best mortgage involves working with a mortgage broker.

Mortgage Broker Reference Questionnaire: Download PDF

Before choosing a mortgage broker to help arrange financing for the purchase of a home, you’ll want to check references from others who worked with this broker.  Here’s what to ask the mortgage br

Where to Shop for a Mortgage

You can save real money if you carefully shop for a mortgage. Even a one-quarter percentage point difference in interest rates can mean savings of thousands of dollars over the life of the loan. Loan terms change frequently, so it's good to compare at least a half-dozen lenders -- or to get the help of an experienced mortgage broker, who can help you sift through the latest offerings.

Who's Who in the Mortgage Business

Understanding the various players who can facilitate or make you a home loan.

Home Buyers: What You Can Learn From the Truth-In-Lending Disclosure

Although a loan may help you finance your home purchase, it also comes with various costs. These are connected with taking out, closing, and carrying the loan.

Home Buyers: What You Can Learn From the Good Faith Estimate (GFE)

Shopping for a home loan is not much different than any other major purchase. You want to compare the costs and benefits of the available products before you make your choice.

Deducting Mortgage Points When You Buy a House

If you get a home loan one of the charges you'll likely have to pay your lender are "points." A point is equal to 1% of the loan amount—for example, one point on a $100,000 loan is $1,000. These charges are also called loan origination fees, maximum loan charges, or premium charges. Some points are

How to Arrange a Home Loan from Mom and Dad

Many homebuyers, especially first-timers, turn to family and friends for financial help with the down payment or mortgage. The benefits are numerous, including interest savings, flexible repayment plans, easier qualifying, minimal red tape, and saving on private mortgage insurance (typically lenders

Is special paperwork required for money gifted towards buying a home?

My generous parents have offered to give me $10,000 towards the purchase of my new home. Is there any special paperwork I need for this?

Sample Gift Letter

If a relative or friend is giving you gift money to buy your house, your bank and lender will

What to Avoid When Taking Out a Mortgage With Which to Buy Real Estate

When taking out a mortgage with which to buy a home or property, there are a few terms and conditions you should be on the lookout for and, in many cases, avoid. For example, you may want to steer clear of interest-only loans, balloon payments, and adjustable rate mortgages. While not everyone needs

Over 60 and Buying a House: Should I Borrow or Pay All Cash?

Borrowing to buy a home involves risk at any age, but the risk is magnified when one is close to retirement. That’s why determining the right amount of risk for you is key.

Mortgage Rate Locks: How They Work

A mortgage rate lock (also called a lock-in) is a lender's promise to hold a certain interest rate at a certain number of points for you, usually for a specified period of time, while your loan application is processed. A mortgage rate lock -- written and signed by both you and the loan official -- can protect you from rising interest rates while your loan is processed.

I couldn't get a mortgage: Can I get my earnest money back?

Check your purchase contract for contingencies and deadlines affecting whether inability to obtain a loan and close on the purchase also means losing your earnest money to the seller.