Pre-Qualification is an early estimate. This gives you an idea of what you may be able to afford based on a few qualifiers. START HERE

Pre-Approval is verified by a lender (bank) and is what gives you real skin in the game to make a strong offer. The process of pre-approval dives much deeper into financial standing and history. Get Pre-Approved BEFORE you make an offer.

Your credit score directly affects:

-Your interest rate
-Your monthly payment
-How much house you can afford
and sometimes whether you qualify at all.
-Lenders use your score to estimate risk.

Generally:

-Higher score = lower risk = lower rate
-Lower score = higher risk = higher rate
-Typical Credit Score Tiers

Credit Score

General Impact

760+ = Best rates available
740–759 =Excellent rates
700–739 = Still strong
660–699 = Moderate increase in rate
620–659 = Noticeably higher costs
Below 620 = Limited loan options

(Loan programs vary — especially FHA, VA, and conventional.)

Why It Matters So Much

- Even a small rate difference changes your payment dramatically over 30 years.

Example on a $450,000 loan:

Rate:
Approx. Principal & Interest =

6.25% ~$2,770/mo
7.25%~$3,070/mo

That’s roughly:

$300 more per month
or over $100,000+ across the loan term.

Closing costs are the fees and expenses paid when a home purchase is finalized — separate from your down payment.

They cover things like:

- Lender fees
- Title work
- Escrow
- Taxes
- Insurance
- Government recording fees
- Prepaid home expenses

The full homebuying process usually takes anywhere from:

30–90+ days for most buyers, sometimes longer for first-time buyers or buyers preparing financially

Typical Homebuying Timeline

1. Preparation & Preapproval
Usually:

- A few days to several months
This stage includes:

- Credit review
- Budgeting
- Lender conversations
- Gathering documents
- Building a game plan

For some buyers, this is the longest phase.

 
2. Home Search Usually:

- A few days to a few months
Some buyers find a home immediately.

Others wait for:

- The right neighborhood
- Price drops
- Lower rates- Bbetter inventory
 
3. Under Contract Usually:

- 30–45 days
This is the “closing period” after an offer is accepted.

During this time:

- Inspections happen
- Appraisal is ordered
- Underwriting reviews finances
- Title/escrow process paperwork
- Final loan approval happens
 
4. Closing Day Usually:

1 day
You sign:

- Loan docs
- Title docs

- Disclosures

Then:

- Funds transfer
- Recording happens
- Keys are delivered

Absolutely - But the process will differ from W-2 employees and requires much more documentation.

Are you one of these: 

- Business owners
- Realtors
- Contractors
- Freelancers
- Gig workers

- YouTubers
- Influencers

- Commission-based employees
- Side-hustle income
- Seasonal income

- Small business owners
- Trades
- Entrepreneurs
- 1099 workers

Lenders typically will ask for:

- Tax Returns

- Business Documentation

- Constant Income Trend

- Debt-to-income Ratio

Most homeowners pay what’s commonly called:

PITI

- PITI = Principal+Interest+Taxes+Insurance

Principal:

This is the portion paying down the actual loan balance.

Interest:

This is what the lender charges for borrowing the money.

Interest:

This is what the lender charges for borrowing the money.

Homeowners Insurance:

Protects the home against:

- Fire
- Storms
- Liability
- Other covered damage

Other Possible Monthly Costs:

Mortgage Insurance (PMI or FHA MI)

Usually applies when:

- Putting less than 20% down on conventional
using FHA financing
This can add:

~ $50–$400+ per month
depending on:

- Loan size
- Credit score
- Down payment
 
HOA Fees:

If the property has an HOA:

- Condos
- Townhomes
- Planned communities
- This is usually separate from the mortgage payment.

 
Special Assessments

Occasionally:

- Metro districts
- Special taxes
- Community assessments

If the interest rate is 6.5%, year 1, it is 4.5%, year 2, 5.5% and years 3-30 6.5%

This helps ease transition, lowers initial payments and is less expensive than a permanant buydown.

Talk to your Mortgage Professional for all the details.

Usually:

- The seller
- The builder
- Lender credit, the money is paid upfront into an escrow account that covers the difference in payment during the first two years.