Tag Archives | GIft Funds

How Much Money Do I Need for a Down Payment?


The “gold standard” for a down payment is 20 percent of the home’s purchase price. If you can afford to put down 20 percent, you will avoid paying private mortgage insurance (PMI). Private mortgage insurance insures the lender against possible default.

Borrowers who put down less than 20 percent are considered by lenders as higher credit and default risks. In these cases, borrowers must purchase Private Mortgage Insurance (PMI), and pay for it every month along with their monthly mortgage payment. Read More

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What Documents Do I Need to Be Approved For a Mortgage?

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Once you have completed a mortgage application, the lender will provide you with a Loan Estimate within three business days. No matter how large a mortgage you want to borrow, whether it is $100,000 or $500,000, you will need to provide your lender several documents verifying your income and finances. The lender may not require verification documents prior to providing the Loan Estimate. However, you may want to gather documents that are typically requested. Read More

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