In recent years, lenders have become more aggressive about the amount of financing available for a purchase transaction.

Years ago, unless at least a 20% down payment was made, banks tended to require mortgage insurance (not tax deductible).

Today, for tax reasons (i.e., to deduct the interest on the interest) and because of limited liquidity (i.e., no available cash), the goal for many home purchasers is to highly leverage (i.e., borrow heavily) on the purchase of a home.

Routinely, mortgages up to 95% of the purchase price are available. Indeed, on a case-by-case basis, mortgages up to

103% of the purchase price may be possible-- and sometimes even more. In such instances, the particular facts and circumstances drive the total amount that a bank may entertain lending.

In addition, with a pre-qualification letter or pre-approval in your pocket when house hunting, you can usually present yourself as a stronger potential purchaser to both sellers and realtors.

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