Financing FAQ's

Getting pre-approved helps you understand your budget and strengthens your offer when you find a home you love. Sellers take pre-approved buyers more seriously.

Pre-qualification is an estimate based on basic financial information you provide. Pre-approval is a more detailed review of your credit, income, and assets and carries more weight with sellers.

Many lenders look for a credit score of 620 or higher for conventional loans. However, some loan programs may allow lower scores depending on your financial situation.

Down payments vary depending on the loan type. Some programs allow as little as 3–5% down, while others may require 10–20%. Your lender can help you determine what works best for you.

In addition to your down payment, plan for closing costs, inspections, appraisal fees, insurance, and potential moving expenses. A good rule of thumb is to budget an extra 2–5% of the home’s purchase price.

Lenders look at your overall debt-to-income ratio, not just individual debts. Many buyers successfully purchase homes while managing student loans or other payments.

There are several mortgage options available to home buyers, each designed for different financial situations and goals. Common loan types include Conventional Loans, FHA Loans, VA Loans, and USDA Loans. Conventional loans are popular for buyers with strong credit, while FHA loans offer more flexible requirements for first-time buyers. VA loans are available to eligible veterans and active-duty service members, and USDA loans may help qualified buyers purchase homes in certain rural areas with little to no down payment. A lender can help determine which financing option best fits your needs and budget.