Get Started - Purchase

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How much money do I need for a down payment?

Down payment requirements vary. Depending on the program, you may be able to put as little as 3% down, while other programs may require more based on your credit and financial situation. In general, the larger your down payment, the smaller your loan balance and monthly payment.

How do closing costs affect my purchase?

Closing costs affect your purchase because they are fees you pay for services such as the appraisal, title search, and lender processing. They usually range from 2% to 5% of the purchase price. Planning for these costs helps you avoid surprises when it’s time to close.

What is earnest money and how does it work?

Earnest money is a deposit you make when you submit an offer on a home to show the seller you are serious. It is usually applied to your closing costs or down payment at closing. If the deal falls through for a valid reason, you may be able to get the earnest money back.

Can I use gift funds for my down payment?

Yes. Many loan programs allow you to use gift funds from a family member to cover part or all of your down payment. Your lender may require a signed gift letter confirming the money is not a loan. This can make buying a home more affordable for first-time buyers.

Does my loan program type impact the type of house I can get?

Yes. Your loan program type can impact what kind of house you can get, because certain programs have property requirements. For example, FHA loans often require homes to meet minimum safety standards, while VA loans may have specific appraisal rules. Your loan officer can guide you on which types of homes fit your program.

Do I need to have a home inspection if I get an appraisal?

Even if you get an appraisal, you may still want a home inspection. An appraisal estimates the home’s value for the lender, while an inspection evaluates the home’s condition for your benefit. Both are important: the inspection helps you understand repairs or issues before you buy, and the appraisal helps secure the loan.

How does the purchase process work?

The purchase process starts with a pre-approval so you know how much you can borrow. After you find a home, you make an offer and apply for the mortgage. Then the lender reviews your finances, orders an appraisal, and works with you through closing.

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