FAQs - Buyers

The "20% rule" is a myth for many. Many conventional loans allow for 3%–5% down, while FHA loans start at 3.5%. VA and USDA loans may allow for 0% down for eligible buyers.

 In a competitive market, a clean offer is key. Get fully pre-approved (not just pre-qualified), keep contingencies minimal, and be flexible with closing dates to match the seller's needs.

Generally, 620 is the floor for most conventional loans. However, higher scores (740+) significantly lower your interest rate, which can save you tens of thousands over the life of the loan.

Beyond the down payment, budget for closing costs (usually 2%–5% of the purchase price), home inspection fees, appraisal gaps, property taxes, homeowners insurance, and immediate maintenance reserves.

If you wait for rates to drop, home prices often rise due to increased competition. A common strategy is "marry the house, date the rate"—buy when you can afford the payment now, and refinance later if rates improve.  This question is directly related to the first question in this series.  Preparation is key, talk and run numbers with your loan officer and realtor to ensure you are comfortable with your monthly payment.

A pre-qualification is an estimate based on self-reported info. A pre-approval means a lender has verified your financial documents (tax returns, pay stubs). You need a pre-approval to submit a serious offer.