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When applying for a mortgage, and have it swiftly approved by the lender, one
generally has to make a 20% down payment, afford closing costs, and have
favorable credit scores and financial ratios (described in
Buyer Tools). 20% down payment mortgages are often quickly sold to other lenders in what's
known as the "secondary market." Mortgages are actually bought and sold almost like stocks or bonds.
If you do not have the 20% down payment, there are many lender promotions
like first-time home buyer programs, 100% financing options, 5% down payment programs,
Fannie Mae foreclosed-properties,
Veterans Administration Loans, and
HUD Loans available. A 401k plan is a risky way of saving if
you do not have 20% down (draw from it with penalty, or borrow from it if
you will be in this job for a long time). Also related, you may be able to
get the Seller to pay Closing costs to reduce up front cash. Please
seek the advise of a financial planner of course, and also read all the
Financial Considerations pages in
Buyer Tools.
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Real Estate 101 Page
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