The first step is getting pre-approved for a mortgage. This will give you a clear idea of how much you can afford and demonstrate to sellers that you are a serious buyer. Pre-approval involves submitting financial information to a lender who will assess your credit, income, and debt-to-income ratio.

The down payment required can range from 0% to 20%, depending on the type of loan and your financial situation. For example, VA and USDA loans may offer zero down payment options, while conventional loans typically require up to 20%. We offer conventional loans with 97% LTV, which means you only pay 3% down. There are also down payment assistance programs available that can help reduce your upfront costs. It’s important to consult with a loan expert to find the best option for your needs.

Closing costs are fees paid at the end of the home buying process, covering services like title insurance, appraisal, and attorney fees. They typically range from 2% to 5% of the home’s purchase price. Some loan programs may allow the seller to cover a portion of these costs.

Most lenders prefer a credit score of 620 or higher for conventional loans, while FHA loans are more flexible, allowing scores as low as 580. VA and USDA loans also have lenient credit score requirements. A higher score may help you qualify for better interest rates.

Pre-qualification is an estimate of how much you can afford based on your financial situation, while pre-approval involves a more thorough review of your credit and finances, giving you a conditional commitment from a lender. Pre-approval is stronger and more appealing to sellers when making an offer.