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48 | | Spring 2017 R eports estimate as much as one-third of potential homebuyers do not understand some basic facts about buying a home and taking out a mortgage. Among the areas of confusion: The down payment It's estimated that 31 percent of buyers didn't know it was possible to get a mortgage with a down payment of less than 5 percent. If you're among that group, know this: The Federal Housing Authority (FHA) insures loans that require as little as 3.5 percent down. If you've already saved a down payment of 10 or 20 percent, that's even better. But if you're having trouble saving and you meet FHA requirements, you could get a mortgage with a down payment of just 3.5 percent. Or contact American Airlines Federal Credit Union and inquire about their 3-percent-down options. powered by House hunting? Make sure you do your homework. SPOTLIGHT The pre-approval process As much as 26 percent of buyers admitted that they believe that once they're pre-approved for fi nancing, they're obligated to close the deal with those loans. This isn't true. There's no obligation to use pre-approved fi nancing, and if you fi nd better rates and terms, you should take them. Where to get a mortgage When shopping for a mortgage, your fi rst instinct might be to go to the fi nancial institution you use for checking and savings accounts. This is not the worst impulse. However, you can often lower your interest rate by shopping for a mortgage at the Credit Union – and even if doing so only saves you half a percentage point, you could save more than $10,000 over 30 years. Chris O'Shea is a regularly contributing writer for SavvyMoney. To get your own fi nancial checkup with Savvy Money today, visit SavvyMoney.com/aacu. According to a new survey, potential homebuyers have some things to learn.