Yes, obtaining pre-approval is advisable. It involves a lender reviewing your financial information to determine your borrowing capacity, giving you a clearer picture of your budget and enhancing your credibility with sellers.

• FHA LoansDown Payment: 3.5%
  (with 580+ credit score)

• VA Loans
  Down Payment: 0%- Eligible Veterans

• USDA Loans
  Down Payment: 0%-Rural/Suburban Properties

• Conventional 97 Loans
  Down Payment: 3%-Home Ready/Home Possible 1st time homebuyers

• Down Payment Assistance (DPA) Loans/Grants
  Down Payment: Varies – can cover partial or full down payment
  May come as a grant, forgivable loan, or deferred second mortgage
  

Closing costs are fees associated with finalizing a home purchase, including:

• Loan origination fees.

• Appraisal and inspection fees.

• Title insurance.

• Prepaid taxes and insurance.

These typically range from 2% to 5% of the home's purchase price.

Various purchase loans are available, including:

• Conventional Loans: Not insured by the government.

• FHA Loans: Insured by the Federal Housing Administration.

• VA Loans: These are available to veterans and service members and are backed by the Department of Veterans Affairs.

• USDA Loans: For rural property buyers, backed by the U.S. Department of Agriculture.

• Non-Qualified Mortgage Loans, such as DSCR (Debt Service Coverage Ratio) for real estate investors or Foreign National Loans, and Bank Statement Loans for Self-employed borrowers.

• Down Payment Assistance Loans that involve grants or forgivable second mortgages for First-time Homebuyers.
  

You need income records (pay stubs, tax returns), bank records, and information about your debts including your credit report.

Yes, many loan programs allow the use of gift funds from relatives or close friends for down payments. Lenders may require a gift letter and documentation to verify that the funds are a gift, not a loan.

Mortgage points (also called discount points or origination points) are fees paid to a lender at closing in exchange for a lower interest rate on your mortgage. Origination points are fees charged by a lender to process, underwrite, and fund your mortgage loan.

Fixed-rate mortgages are better when current rates are low because you can lock them in. If rates are high, an ARM might be better as rates may drop over time. Refinancing is also an option later on to take advantage of rate changes.

Private Mortgage Insurance (PMI) is a type of insurance that protects the lender—not you as the borrower—if you stop making your mortgage payments (i.e., default on the loan). With less than 20% down PMI is required for conventional mortgages.

Some loan programs consider projected rental income to help qualify. A detailed rental income analysis may be required, and often only a portion of the income is considered in the assessment.