The amount you need for a down payment depends on the type of loan and your financial situation. While 20% is a common benchmark, many buyers put down less—some conventional loans allow as little as 3%, and FHA loans require just 3.5%. Some of our mortgage lender recommendations offer grants and other programs, which you may qualify for as well.

Pre-qualification: A quick, informal estimate of how much you can borrow based on basic financial information. It’s not a guarantee.

Pre-approval: A more thorough process where the lender reviews your financial documents and gives you a specific loan amount. It’s a stronger, more reliable step for serious buyers.

Your credit score plays a big role in determining your mortgage rate. The higher your score, the lower the interest rate you'll typically be offered. A higher score shows lenders that you're a lower risk, meaning they’re more likely to give you a better rate. On the other hand, a lower score might lead to a higher interest rate, as the lender sees you as a riskier borrower.

Closing costs are fees you pay when finalizing your home purchase, typically covering things like loan origination, title insurance, inspections, and taxes. Expect to pay about 2-5% of the home’s purchase price in closing costs. The exact amount depends on factors like location, the price of the home, and the type of loan you’re using. Sometimes, the seller offers seller's concessions, which can lower that amount, depending on the market.

Before viewing any homes, the buyer has to sign a Buyer's Representative Agreement with their agent. This states the agent's responsibilities to you and their compensation rate. That compensation rate will then be submitted with your offer to the seller. The seller can either agree to pay the full compensation, counter-agree to pay some percentage of it, or not agree to pay anything. 

The buyer's options:

1. Seller counters with a lower percentage - Buyer can either pay the difference out of pocket at closing, raise their offer to finance the difference into the agreement, or walk away.

2. Seller agrees to pay nothing - Buyer can either pay the full compensation out of pocket at closing, raise their offer to finance the commission into the agreement, or walk away.

The homebuying process typically takes 30-60 days, depending on factors like financing, inspections, and negotiations. For a smooth experience, it’s important to stay organized and responsive throughout each step. For luxury homes, the process can sometimes take a bit longer due to more detailed inspections or custom requests like post-occupancy.

Yes, you can buy a home if you're self-employed or have irregular income. Lenders will typically want to see 2 years of consistent income and may require more documentation, like tax returns and bank statements, to verify your financial stability. Having a strong financial track record and a substantial down payment can help strengthen your application.

Your monthly mortgage payment typically includes:

Principal: The amount you borrowed.
Interest: The cost of borrowing the money.
Property Taxes: Local taxes for your home.
Homeowners Insurance: Coverage for damage or loss.
Private Mortgage Insurance (PMI): Required if your down payment is less than 20%.

For luxury homes, your payment might also include fees for things like private community services, HOA, CDD, or additional insurance coverage.

A 2-1 buydown is a temporary mortgage rate reduction where your interest rate is 2% lower in the first year and 1% lower in the second year. After that, it returns to the original rate.

This can help lower your monthly payments early on, giving you some breathing room as you settle into your new home. However, the reduced rate is typically paid for upfront by either the seller or the buyer.