- A potential home buyer should get a mortgage pre-approval to know what financing is available and have an advantage over buyers who are not pre-approved. - Programs exist for buyers putting down only 5% for a principal residence or those who are self-employed with at least 2 years of income documentation. - A credit score is determined by factors like past payment history, credit utilization, credit history, types of credit used, and credit inquiries, and estimates the risk of a buyer failing to make payments.

2. 5% Down Program Designed for those who don't have 20% set aside for a down payment. The 5% down program is for principal residences only (cannot be rental property). Must provide proof of down payment plus 1.5% of the purchase price for closing costs. Wide variety of payment terms!

6. Closing Costs Description Amount Appraisal $350 Home Inspection (approx.) $350 Legal Fees (approx.) $900 TOTAL: $1,600 Survey, Tax Adjustment, Interest Adjustment & Property Transfer Tax fees may apply. Additional costs involved above the minimum down payment, include:

7. What is a Credit Score? A credit score is a rating used by a lender to help determine whether you qualify for a particular credit card, loan, or service. Based on information in your credit file, the credit reporting company analyzes your information using a complex mathematical model to yield your credit score. Most credit scores estimate the risk a company incurs by lending you money or providing you with a service, specifically, the likelihood that you'll fail to make payments in the next two to three years. The higher the score, the less risk you represent. Your score is calculated by a mathematical equation that evaluates many types of information found in the credit file.