A pre-qualification is an initial estimate of how much you may be able to borrow based on basic financial information you provide — like your income, debts, and assets.

A pre-approval is a conditional commitment from a lender stating how much they’re willing to lend you, based on a more detailed review of your finances.

Your credit score directly affects your mortgage rate because it shows lenders how risky it is to lend to you. 

The higher your credit score, the lower your interest rate — meaning smaller monthly payments and less paid over time.

The lower your credit score, the higher your rate — because lenders see you as a higher risk.

Closing costs are the fees and expenses you pay at the end of a real estate transaction, covering things like lender fees, title services, taxes, and insurance.  You can typically expect to pay about 2% to 5% of the home’s purchase price in closing costs.

The homebuying process usually takes 30 to 45 days from the time your offer is accepted to closing, though it can vary depending on factors like financing, inspections, and negotiations.

Yes! You can buy a home if you’re self-employed or have irregular income — you’ll just need to provide extra documentation, like tax returns, profit-and-loss statements, and bank records, to show stable earnings and your ability to repay the loan.

Your monthly mortgage payment typically includes four main parts — PITI:

Principal: the amount borrowed
Interest: the cost of borrowing
Taxes: property taxes
Insurance: homeowner’s insurance (and possibly mortgage insurance)

Together, these cover your loan and homeownership costs each month.

A 2-1 buydown is a temporary way to lower your mortgage interest rate for the first two years. Your rate is 2% lower in year one, 1% lower in year two, and returns to the full rate in year three. The difference is usually paid upfront by the seller, builder, or lender to make your early payments more affordable.

A 2-1 buydown can be paid by the seller, builder, or lender, and sometimes by the buyer. Most often, it’s offered as a seller or builder incentive to make the home more affordable for the buyer in the first two years.