Frequently Asked Questions

The amount you need depends on the loan type and your situation:

• Conventional loans: Typically 3–20% down payment

• FHA loans: As low as 3.5% down

• VA loans: 0% down for eligible veterans

• USDA loans: 0% down for eligible rural properties

Beyond the down payment, budget for closing costs (2–5% of the purchase price), home inspection, appraisal, and moving expenses. Many first-time buyer programs offer down payment assistance to help reduce upfront costs.

Most loan options begin at 580–620, but it's possible to get approved with a credit score of 500 or better. FHA loans may accept scores as low as 500 with a 10% down payment, or 580 with 3.5% down. Conventional loans typically require 620+. Higher credit scores unlock better interest rates and terms, so improving your score before applying can save you thousands over the life of your loan.

Not required. You can sell and buy at the same time. Many buyers coordinate both transactions to close on the same day or within a few days of each other. Your agent can help structure contingencies to protect you, and bridge loans or home equity lines of credit can provide temporary financing if needed. Selling first gives you certainty on your budget, while buying first ensures you have your new home secured.

The average closing takes 30–45 days from the time your offer is accepted. This timeline includes the inspection period, appraisal, loan underwriting, and final walkthrough. Cash buyers can often close in 1–2 weeks. Delays can occur due to appraisal issues, title problems, or lender backlogs, so it's important to stay in close communication with your agent and lender throughout the process.

No. There are important differences between mortgage brokers and traditional banks:

**Mortgage Brokers:**

• Shop your loan across multiple lenders to find the best rate and terms

• Access to a wide variety of loan products

• Can be more flexible and personalized

• May charge broker fees, but often save you money overall

**Traditional Banks & Credit Unions:**

• Offer their own in-house loan products

• May provide relationship discounts if you bank with them

• Streamlined process if you're already a customer

• Limited to their own rates and programs

Working with a broker often gives you more options and competitive rates, while banks offer convenience and familiarity. It's worth comparing both to find the best fit for your situation.

While not legally required, working with a real estate agent is highly recommended. Agents provide expert market knowledge, negotiate on your behalf, handle complex paperwork, coordinate inspections and appraisals, and guide you through every step of the process. Best of all, buyer's agents are typically paid by the seller, so their services cost you nothing. An experienced agent can save you time, money, and stress.

Closing costs are fees and expenses you pay when finalizing your home purchase, typically 2–5% of the purchase price. They include loan origination fees, appraisal, home inspection, title insurance, attorney fees, recording fees, prepaid property taxes and insurance, and escrow deposits. Some costs are negotiable, and you may be able to ask the seller to contribute. Use our Closing Costs Calculator to estimate your specific costs.

Your home's value depends on location, size, condition, recent upgrades, and comparable sales in your area. The best way to determine your home's worth is to get a Comparative Market Analysis (CMA) from a local real estate agent, who will analyze recent sales of similar homes. You can also use online valuation tools for a rough estimate, but an agent's expertise provides the most accurate assessment. Schedule a consultation to get a free, no-obligation home valuation.

Focus on repairs that offer the best return on investment: fix any safety issues, address obvious maintenance problems (leaky faucets, broken fixtures), freshen up paint with neutral colors, deep clean and declutter, improve curb appeal with landscaping, and consider minor kitchen and bathroom updates. Avoid major renovations like full remodels or adding a pool—these rarely recoup their cost. Consult with your agent early to get guidance on what's worth doing and what's not.

Once you find a home you love, your agent will help you submit a written offer that includes the purchase price, earnest money deposit, financing terms, contingencies (inspection, appraisal, financing), and proposed closing date. The seller can accept, reject, or counter your offer. Negotiations may go back and forth until both parties agree. Once accepted, you'll enter escrow and begin the inspection, appraisal, and loan approval process leading up to closing.

Earnest money is a good-faith deposit you make when submitting an offer, typically 1–3% of the purchase price. It shows the seller you're serious about buying and is held in escrow until closing. If the deal closes, earnest money is applied toward your down payment and closing costs. If you back out for a reason covered by your contingencies (failed inspection, appraisal issues, financing denial), you'll get it back. If you back out without a valid reason, the seller may keep it.

Yes, you can buy a home with student loan debt. Lenders will factor your monthly student loan payment into your debt-to-income ratio (DTI), but as long as your total monthly debts (including the new mortgage) don't exceed 43–50% of your gross monthly income, you can still qualify. Income-driven repayment plans can help lower your monthly payment and improve your DTI. Talk to a lender to understand how your student loans will impact your buying power.