Help

Buying a Home

• What will a lender look at when I apply for a mortgage?

  Lenders typically look at your credit, assets, down payment, income, and debt. Learn more about the loan process.

• What does it mean to get prequalified?

  Prequalification is an estimate of how much you will be able to borrow. You supply the lender with some basic information about your income, debts and assets. The lender checks your information and gives you a general estimate of home loan amount and monthly payments. Prequalification only takes a few minutes and it’s free.

• What does it mean to get preapproved?

  With preapproval, lenders review some basics about your finances and provide you with an official letter that states that as long as you meet certain conditions, you will be approved for a specific loan amount and loan program. That allows you to shop with confidence, as sellers often require a preapproval when you go to bid on a home. Learn more about the preapproval step in the loan process.

• Do I have to have a specific property in mind?

  No. Often before shopping for a home, prospective homebuyers set a budget. Get prequalified or preapproved and we’ll help you determine how much of a monthly mortgage you can afford and how much you might be able to borrow. Call us at 1-877-941-4622, see hours of operation or get started online to get prequalified.

• What is the minimum down payment I can make on a home?

  It depends. Generally speaking, lenders require you to put down between 3.5% to 20% of the home’s value. See the side by side comparison of the mortgage programs.

• Will I have to pay for Private Mortgage Insurance (PMI)?

  Typically, if your loan amount is more than 80% of the home’s appraised value, you will be required to obtain private mortgage insurance known as PMI.

• What is the difference between a second home and an investment property?

  A second home is a home you use personally. The mortgage process for a second home is very similar to your primary home mortgage. An investment property is a property you rent out (become a landlord) or buy for the purpose of fixing up and selling at a higher value. This could be an apartment property, condominium, or single family residence.

• What if I have had credit problems? Will I be turned down for a loan?

  Not necessarily. Even if you have had credit problems, you may still qualify for a loan. Your credit score is only one of the factors to qualify for a loan. Lenders also look at your employment history, income, debt, and cash reserves.

• Can I apply a gift towards a down payment?

  FHA loans allow homebuyers to use gift funds to help cover the cost of the down payment. In many cases, some or all of the down payment may be a gift from a family member, the borrower’s employer or labor union, or a charitable organization. To learn more, call us at 1-877-941-4622, see hours of operation.

• How can I find a property available through GMAC Mortgage?

  Search our listings of homes available through GMAC Mortgage.