From NAR
NAR’s Consumer Guide: Mortgages and Financing explains the basics buyers need to understand before choosing a loan, and it’s a great handout to reinforce your advice.
It covers what a mortgage is and what impacts loan options (credit, income, debts, employment history, down payment, interest rates, and lender guidelines). It also breaks down common loan types, including fixed-rate and adjustable-rate mortgages (ARMs), and explains how down payments work (including that higher down payments often mean lower monthly payments and that assistance programs may be available).
The guide also compares conventional vs. government-backed loans, highlighting options like FHA, VA, and USDA loans, and notes ways buyers may reduce upfront costs, such as negotiating seller concessions or asking a seller to cover the buyer’s agent compensation as part of the offer (while noting agent compensation generally can’t be financed into the mortgage).
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