Pre-qualification is an informal estimate of how much a buyer might be able to borrow based on self-reported financial information and little to no documentation. Pre-approval is a more thorough process where a lender verifies income, assets, credit, and employment to approve a specific loan amount. A pre-approval carries much more weight with sellers and shows you’re financially ready to make an offer.

Your credit score directly impacts the interest rate a lender offers you — the higher your score, the lower your rate is likely to be. A lower score signals more risk to the lender, which can result in a higher rate and a higher monthly payment. Even a small difference in rate can significantly affect how much you pay over the life of the loan.

Closing costs are the fees and expenses you pay to finalize your mortgage and transfer ownership of the home, including lender fees, title insurance, appraisal, and taxes. Buyers typically pay about 2%–5% of the home’s purchase price in closing costs, though the exact amount varies by loan type and location. Some costs may be negotiated or covered by seller concessions.

The homebuying process typically takes 30–45 days once you’re under contract, depending on financing, inspections, and appraisal timelines. Before that, the home search itself can take anywhere from a few weeks to several months, depending on the market and how quickly you find the right home. Being pre-approved and prepared can help speed things up significantly.

Yes, you can buy a home if you’re self-employed or have irregular income, but lenders will require more documentation. Typically, you’ll need two years of tax returns, profit-and-loss statements, and consistent income history to verify stability. Strong credit, solid savings, and manageable debt can also help strengthen your application.

Your monthly mortgage payment typically includes principal (the amount you borrowed) and interest, plus property taxes and homeowners insurance — often referred to as PITI. If your down payment is less than 20%, it may also include private mortgage insurance (PMI). Some payments can also include HOA dues if applicable, though those are usually billed separately.

A 2-1 buydown is a temporary financing option that lowers your mortgage interest rate for the first two years of the loan. In year one, the rate is typically 2% lower than the note rate, in year two it’s 1% lower, and by year three it adjusts to the full fixed rate for the remainder of the loan. The upfront cost to subsidize the lower payments is usually paid by the seller, builder, or sometimes the buyer.