writing and keep it for your records. A deed-in-lieu of foreclosure is one type of loss mitigation.
Down payment A down payment is the amount you pay toward the home upfront. You put a percentage of the home’s value down and borrow the rest through your mortgage loan. Generally, the larger the down payment you make, the lower the interest rate you will receive and the more likely you are to be approved for a loan. Down Payment Assistance Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. Many lenders offer down payment assistance. Check with your mortgage originator. More than 2,000 of these programs are available nationwide. State, county, and city governments run many of them. To find DPA in your area (not offered by a lender) visit this website https://themortgagereports.com/33553/complete-guide- to-down-payment-assistance-in-the-usa#state . Earnest money Earnest money is a deposit a buyer pays to show good faith on a signed contract agreement to buy a home. The deposit is held by a seller or third party like a real estate agent or title company. If the home sale is finalized or “closed” the earnest money may be applied to closing costs or the down payment. If the contract is terminated for a permissible reason, the earnest money is returned to the buyer. If the buyer does not perform in good faith, the earnest money may be forfeited and paid out to the seller.
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