For most buyers, the home search really begins with financing. Knowing how much you can borrow, what your monthly payment will look like and how much cash you will need at closing lets you shop with confidence and make strong offers.
We are not a lender, but we work with buyers through every step of the financing process. Below is a simple overview of how home financing works, the loan types buyers commonly use and what lenders will usually ask you for.
A written pre-approval from a lender shows sellers you are a serious, qualified buyer and tells you exactly what price range to shop in.
The amount you qualify for and the amount you are comfortable paying each month are not always the same. Decide your own monthly budget first.
Talk with more than one lender and compare interest rates, lender fees, down payment requirements and loan terms before you choose.
Having your paperwork ready speeds up the approval process and helps avoid delays once your offer is accepted.
Beyond your down payment, budget for closing costs such as lender fees, title and escrow fees, prepaid taxes and insurance.
Avoid opening new credit, making large purchases or changing jobs until after closing. Changes to your finances can affect your final loan approval.
Not backed by a government agency. Often a good fit for buyers with solid credit and a steady income.
Insured by the Federal Housing Administration, with flexible credit guidelines and a lower minimum down payment.
For eligible veterans, active-duty service members and qualifying spouses, often with no down payment required.
For eligible homes in qualifying rural and suburban areas, with income limits and often no down payment required.
Every buyer's situation is different. A lender can tell you which loan programs you qualify for.
