Financing your home
Financing sounds complicated — it doesn't have to be. Here's the plain-language version of how it works, so you walk in informed. Agent can connect you with local lenders who explain the rest.
Pre-approval comes first
A pre-approval is a lender's written estimate of what you can borrow, based on your income, credit, and debts. It tells you your real budget and shows sellers you're serious. It's usually free and takes a day or two.
The main loan types
Conventional loans are the most common; FHA loans allow lower down payments; VA loans serve veterans with strong terms; and jumbo loans cover higher price points. The right one depends on your down payment, credit, and goals — a lender will match you.
Rates, points, and payments
Your interest rate drives your monthly payment. Rates move with the market and your credit profile. "Points" let you pay upfront to lower the rate. Small differences add up over 30 years, so it pays to compare lenders.
Down payment and closing costs
You don't always need 20% down — many programs allow far less. Beyond the down payment, budget for closing costs (typically 2–5% of the price) covering the loan, title, and taxes. Agent can help you plan for both.