Frequently Asked Questions
How much do I need for a down payment on a home?
It depends on the loan type and your financial picture. 20% is the common benchmark, but many buyers put down far less. Several common loan programs allow a much smaller down payment. There are also down payment assistance programs some buyers qualify for. Want to know what makes sense for your situation? Let's talk it through.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is a quick, informal estimate based on what you tell a lender about your income and debts, no documentation required. Pre-approval is the real deal: the lender verifies your financials and gives you a specific number backed by underwriting, which is what sellers actually take seriously in a competitive offer. If you're getting ready to shop, I can point you to lenders who move fast and connect you with the right one for your situation.
How does my credit score affect my mortgage rate?
Generally, the higher your score, the lower the rate you'll qualify for, and even a small rate difference adds up to real money over a 30-year loan. But credit score is just one piece; lenders also weigh your down payment, debt-to-income ratio, and loan type. If you're not sure where you stand or want to improve your position before buying, I'm happy to walk through it with you.
What are closing costs, and how much should I expect to pay?
Closing costs typically run 2-5% of the purchase price and cover things like lender fees, title insurance, appraisal, and prepaid taxes/insurance. The exact number depends on your loan, the price point, and who's paying what (sometimes sellers contribute). I can give you a realistic estimate once we're looking at actual numbers.
How long does the homebuying process usually take?
From an accepted offer to closing, it's usually 30-45 days, mostly driven by the loan underwriting timeline. Finding the right home first can take anywhere from a few weeks to several months depending on the market and what you're looking for. If you want a sense of what that timeline looks like for your specific goals, let's set up a time to talk.
Can I buy a home if I’m self-employed or have irregular income?
Yes, though the documentation is more involved. Lenders typically want 2 years of tax returns and will look at your average income over that period rather than a single pay stub. There are also loan programs designed specifically for self-employed borrowers. This is one where getting connected with the right lender early really matters, reach out and I can make an introduction.
What’s included in my monthly mortgage payment?
The core is principal and interest, but most payments also include property taxes, homeowners insurance, and, if your down payment is under 20%, mortgage insurance. HOA dues, if applicable, are usually separate. I can break down what a realistic all-in payment looks like for homes in your price range.
What is a 2-1 buydown, and how does it work?
A 2-1 buydown temporarily lowers your interest rate for the first two years of the loan, typically 2% lower in year one and 1% lower in year two, before it settles at the permanent rate in year three. It's a way to ease into a payment, especially useful if you expect your income to grow or rates to drop and you'd refinance later. Curious if this could work for you? Let's run the numbers together.
Who pays for the 2-1 buydown—the buyer, the seller, or the lender?
It varies by deal. Often it's negotiated as a seller concession or builder incentive, but buyers and even lenders can fund it in certain situations. Whether it's on the table often depends on market conditions and how motivated the seller is. Reach out and we can figure out if this is a lever worth pulling on your next offer.
