Learn before you borrow.

1. Get preapproved before you shop. It sets your real budget, surfaces fixable issues early, and makes your offers credible. 2. Set a payment you can live with — including taxes, insurance, and HOA dues, not just principal and interest. 3. Compare loan options: conventional from 3% down, FHA from 3.5%, VA and USDA at 0% for eligible buyers, plus down payment assistance. 4. Shop with an agent you trust. 5. Offer accepted: inspection, appraisal, underwriting — usually three to four weeks. 6. Close and get the keys.

Read the full Buy a Home guide

Lenders look at your debt-to-income ratio (DTI) — your monthly debt payments divided by gross monthly income. Many programs allow a DTI in the low-to-mid 40s (sometimes higher), but a loan that’s approvable isn’t automatically comfortable.

• Start from the monthly payment that feels easy, not the maximum approval.
• Budget for the full payment: principal, interest, taxes, insurance, HOA, and mortgage insurance if under 20% down.
• Keep an emergency cushion after closing — don’t empty savings for the down payment.

Try the payment estimator

• Pay balances down, ideally below 30% of each card’s limit — utilization moves scores fast.
• Don’t open or close accounts in the months before (and during!) your loan.
• Pay everything on time — one recent late payment matters more than an old one.
• Check your reports for errors at annualcreditreport.com and dispute what’s wrong.
• Hold off on the new truck or furniture set until after closing. New debt changes your approval.

And don’t fear shopping for a mortgage: credit bureaus count multiple mortgage inquiries within a 45-day window as a single inquiry.

There’s no single magic number. FHA guidelines are generally the most forgiving; conventional loans price by tier, so a higher score earns a better rate; VA has no set minimum from the VA itself (lenders set their own). Requirements vary by lender and change over time.

If your score isn’t where it needs to be yet, that’s a plan, not a dead end — we’ll tell you honestly what to work on and check back in when you’re ready.

Ask where you stand — no credit pull to talk

• Lender & origination fees — the cost of making the loan; varies by lender, which is why we compare.
• Appraisal & inspection — third parties confirming what the home is worth and what shape it’s in.
• Title & escrow — the legal work proving the home can transfer cleanly to you.
• Prepaids — property taxes and insurance collected up front to open your escrow account. Not a fee: it’s your own future bills.

You’ll see every number on a standardized Loan Estimate within three business days of applying, and again on the Closing Disclosure before you sign — they’re designed to be compared.

Week 1: earnest money deposited, inspection scheduled, loan file opened, appraisal ordered. Weeks 2–3: underwriting reviews your file and may ask for clarifying documents — quick responses keep things moving. The appraisal comes back. Final week: “clear to close,” the Closing Disclosure arrives at least three business days before signing, you do a final walk-through, then sign at the title company.

Our job is to make sure nothing on the financing side ever holds up your closing date.

A refinance makes sense when the savings outlast the costs. Divide the closing costs by your monthly savings — that’s your break-even point in months. Staying in the home longer than that? Worth a serious look. Moving sooner? Probably keep the loan you have.

Payment isn’t the only reason: dropping mortgage insurance, consolidating high-interest debt, shortening your term, or accessing equity can each justify a refinance on their own.

Get a free refinance review on our dedicated site ↗

A cash-out refinance replaces your whole mortgage with a bigger one and hands you the difference — one loan, one fixed payment, best when the new rate is attractive. A HELOC (home equity line of credit) sits behind your existing mortgage like a credit card secured by your home — flexible, interest only on what you draw, best when you want to keep a great first-mortgage rate untouched.

Either way, your home secures the debt — so the plan matters more than the product.

Compare equity options

• Rate vs. APR — the rate prices your payment; APR folds in certain fees so loans can be compared honestly.
• Points — optional upfront interest that buys a lower rate. Worth it only if you keep the loan long enough.
• Escrow — the account your servicer uses to pay taxes and insurance from your monthly payment.
• PMI — private mortgage insurance, usually required under 20% down on conventional loans; removable once you have enough equity.
• LTV — loan-to-value: the loan amount as a share of the home’s value.
• DTI — debt-to-income: monthly debts as a share of gross monthly income.
• Amortization — the schedule that slowly shifts your payment from mostly interest to mostly principal.

• File your homestead exemption (in Texas and many states) — it can lower your property tax bill. It’s free; ignore mailers charging for it.
• Expect escrow adjustments. Taxes and insurance change; your payment can move a little each year even on a fixed rate.
• Re-shop your home insurance every year or two — loyalty rarely gets the best price.
• Check in on your mortgage occasionally. If rates drop or your equity grows, a five-minute review can be worth real money.

Request a free mortgage review ↗

Investment property loans differ from owner-occupied loans in three ways: bigger down payments (often 20–25%), slightly higher rates, and reserve requirements (months of payments in the bank). DSCR programs qualify the deal on the property’s rent covering its payment — useful when write-offs shrink your taxable income.

Lenders also count a portion of expected rent toward qualification, so a good deal helps finance itself.

See investor loan options

A fixed rate never changes — the safe default when you plan to stay a while. An ARM (adjustable-rate mortgage) starts lower for a fixed period (say 5 or 7 years), then adjusts with the market — sometimes sensible when you’re confident you’ll move or refinance before the adjustment, but never a way to stretch into a house you couldn’t otherwise afford.

Modern ARMs have caps that limit each adjustment; your loan officer should show you the worst case in writing, not just the teaser.