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COMMON QUESTIONS

Everything You Need to Know

Can I buy a house with no money down?

The amount of your down payment will depend on the type of loan you choose and the lender’s specific requirements. In general, most lenders offering conventional mortgages will require a down payment. Borrowers who choose a conventional loan and are unable to make a down payment of at least 20% of the home’s purchase price may be required to purchase private mortgage insurance (more on that soon).

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If you’re unable to save a 20% down payment, you may want to look into home loans offered by the U.S. government, two of which I mentioned above (FHA and VA loans). These programs are more lenient and may require a smaller down payment.

WHAT IS PMI AND HOW MUCH IS IT?

PMI is “private mortgage insurance” which is an insurance policy protecting the lender from borrower default. It is a requirement for most mortgages where the down payment is less than 20%. The amount is typically .5%-1% of the loan amount and is included in your monthly mortgage payments. The amount is also partially determined by how much you put down when you purchase the home.

HOW CAN I GET PRE-APPROVED?

To get pre-approved for a mortgage, you will need to complete an application a lender. They will need to see your last 30 days pay stubs, your 2 most recent bank statement, last two years take returns, and they will have to pull your credit report.

Next, the loan officer will hopefully get an automated approval pending conditions. It is at this time when the lender can write your pre-approval letter.

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