A: A down payment is a percentage of the home’s purchase price that you pay upfront. A larger down payment reduces the amount you need to borrow and can lower your monthly payments. Aim to save at least 20% of the purchase price for a down payment to avoid private mortgage insurance (PMI).
Q: How does my credit score impact my mortgage eligibility?
A: Your credit score is a key factor in determining your mortgage eligibility and interest rate. A higher credit score indicates a lower risk to lenders, which can translate into better loan terms and lower interest rates. Work on improving your credit score before applying for a mortgage.
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