Loan types, what the rate really costs, how to compare two lenders, and the mistakes between pre-approval and closing that cost people the house.
A mortgage is the largest financial product most people ever buy, and most people spend less time choosing it than choosing a phone. An hour with this page changes that.
3% to 20% down, best pricing with strong credit, mortgage insurance until you reach 20% equity. Most buyers end up here.
Easier qualifying, mortgage insurance for the life of the loan in most cases, and the property has to pass FHA condition standards.
No down payment, no monthly mortgage insurance, competitive rates. If you are eligible, start here.
Larger loans with stricter reserves and credit requirements. Pricing varies a lot between lenders; shop harder.
A lower rate for 5, 7 or 10 years, then it adjusts. Sensible if you will sell before it does, risky if you will not.
Zero down in eligible areas with income limits. Worth a look on the edges of a metro.
Two lenders can quote the same rate with $4,000 difference in fees, or different rates where the lower one costs more because of points. Points are prepaid interest: you pay cash now for a lower rate later, and they only pay off if you keep the loan long enough.
Ask both for a Loan Estimate on the same loan amount, type and term, on the same day. Rates move daily.
Origination, underwriting, processing and application fees. This is the lender’s margin and it is negotiable.
How long, what it costs to extend, and whether a float-down exists if rates drop before closing.
A great quote from a lender who misses closing dates costs you the house. We know which ones close on time.
Twenty percent avoids mortgage insurance and lowers the payment. It is not required, and waiting years to save it while prices rise often costs more than the insurance would have. Put down what leaves you with real reserves after closing: six months of payments is a comfortable number, three is a floor.
Gift funds are allowed on most loans with a letter from the giver. Down payment assistance programs exist at state and local levels and change often; ask a lender what you qualify for before assuming you do not.
Freeze your financial life from pre-approval to closing. Boring is exactly what an underwriter wants to see.
We work with lenders who close on time and answer the phone on a Saturday. Ask for an introduction, with no obligation to use them.
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