Answers to your questions FAQ Index | General | Mortgage Tools | Rates & Costs | Loan Decision | Closing   How much down payment will my customer need?     The minimum down payment required depends on the mortgage program selected. Usually at least 3% is required. If a borrower puts down less than 20%, the rate may be subject to our Low Down Payment Rate Adjustment. If your customer is concerned about having enough money to purchase a home they may want to consider our options for rolling closing costs into either the interest rate or the loan amount. Your customer will still need to come up with money for the down payment but this will help reduce the amount of additional money needed at closing.   Back to FAQ index   When should my customer start shopping for a mortgage and how do they know what they can afford?     The best time to look for a mortgage is before looking for a house. This way each customer can know exactly the amount of money they're able to borrow. You can use the calculators on this site to help you determine these numbers for each customer as well as their estimated monthly payments. By getting approved for a mortgage before shopping for a home, they'll maximize their negotiating power. It's free and will take only a matter of minutes to get a decision, and there's no obligation until your customer wants to reserve funds.   Back to FAQ index   Does my customer need to sell their existing home before they apply for a new mortgage loan?     Absolutely not! Your customer can apply for a new mortgage loan before selling their current home. However, depending on income and debt levels, your customer may need to sell their current home before they can close on their new home.   Back to FAQ index   Why is the Annual Percentage Rate (APR) different from the interest rate?     The annual percentage rate is intended to reflect the total cost of the mortgage loan. To calculate the APR, lenders consider the interest rate on the mortgage loan, the term of the loan, and other loan fees such as closing costs, points, etc. The monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than the interest rate, especially if the customer is paying any points. To be used as a valid evaluation tool the APR must be loan specific. The actual APR will show up on the Truth-in-Lending statement that you and your customer will see once you have submitted their information and reserved their funds. You might wish to advise your customer that, when comparing loan programs based on APR, they should make sure to ask each lender their criteria for determining the APR.   Back to FAQ index   Can my customer be approved for a loan even with credit problems?     We offer mortgage loan options to customers who may not have perfect credit. If your customer is concerned about their credit, go to our Mortgage Tools and complete the Qualification calculator to determine the likelihood that they will be approved.   Back to FAQ index