- Buying a home might be the most important financial transaction of your life.
- Many people need mortgages to help finance their homes.
Buying a home might be the most important financial transaction you’ll make in your life.
If you’re looking to become a homeowner, you’ll likely be considering a mortgage to help you finance the purchase.
From finding down-payment resources to understanding lender fees, here are eight things Gardner thinks every home buyer should know about mortgages:
A 20% down payment is not a requirement
“The one prevailing myth about home purchasing is that you are required to put down 20%,” Gardner said. While you will usually get a lower interest rate if you have a 20% down payment, he noted, “that is not the threshold for achieving mortgage financing.”
Freddie Mac provides a secondary market to buy mortgages from lenders so they can write more mortgages. While you will never deal directly with Freddie Mac, it has programs designed to help low income borrowers and first-time home buyers qualify for loans with down payments as low as 3%.