■ Homebuyer FAQs — Financing & Mortgage Questions

What’s the first step in the homebuying process?

The first step is getting pre-approved for a mortgage. This helps you understand what price range you can afford, strengthens your offer when you find a home, and identifies any potential credit or income issues early on.

What’s the difference between pre-qualification and pre-approval?

Pre-qualification is a quick estimate based on self-reported information. Pre-approval is a verified review of your income, credit, and assets by a lender. Pre-approval carries more weight when making an offer — it shows sellers you’re financially ready.

How much money do I need for a down payment?

It depends on the loan type: Conventional loans as low as 3–5% down, FHA loans 3.5% down, VA and USDA loans 0% down (for eligible borrowers). Programs like Florida Hometown Heroes can also provide up to $35,000 in down payment and closing cost assistance for qualified buyers.

What will my monthly mortgage payment include?

Most payments include PITI: Principal, Interest, Taxes, and Insurance. If you put less than 20% down, you may also pay mortgage insurance until you reach 20% equity.

How do I know what loan program is best for me?

Your best loan depends on your credit score, down payment, income, and long-term goals. A good lender will walk you through all options — Conventional, FHA, VA, USDA, and specialty programs — to find the one that fits your financial situation.

What credit score do I need to buy a home?

Minimums vary by loan type: Conventional 620+, FHA 580, VA/USDA often 620+. The higher your score, the better your rate and terms — but don’t assume you can’t qualify if your score isn’t perfect.

What are closing costs and how much should I expect?

Closing costs typically range from 2%–5% of the home price. They cover items like appraisal fees, title insurance, taxes, and lender fees. Some programs and seller negotiations can reduce or even cover these costs.

Can I use gift funds or assistance programs for my down payment?

Yes — many loan programs allow gift funds from family members or state/local assistance programs. We help buyers verify and document these sources properly so they can be used toward closing.

Should I buy now or wait for rates to drop?

Timing the market is tricky. What matters more is finding a home that fits your budget and getting in the market sooner so you can start building equity. You can always refinance if rates improve — but you can’t go back and buy at yesterday’s prices. How long does the mortgage process take? Once you’re under contract, most loans close in 20–30 days (some faster). Getting pre-approved and submitting documents early can help ensure a smooth, on-time closing.

What documents do I need to provide?

Typically: recent pay stubs, W-2s or tax returns, bank statements, photo ID, and proof of any assets. Your lender will give you a detailed checklist after pre-approval. What should I avoid doing during the loan process? Avoid: opening new credit cards or financing large purchases, changing jobs or income structure, making large unverified deposits, or missing payments. These can delay or even disqualify your loan approval.

What’s the difference between rate and APR?

Interest rate is the cost of borrowing the loan itself. APR (Annual Percentage Rate) includes the interest rate plus lender fees and costs — it gives you a better picture of the loan’s total cost.

Can I buy a home if I’m self-employed?

Yes — you’ll typically need two years of tax returns to verify income. We also offer bank statement loans and other programs for self-employed borrowers whose tax returns don’t reflect their true cash flow.

When should I talk to a lender?

As early as possible. Even if you’re 6–12 months out, talking to a lender now can help you plan, fix any credit issues, and understand how much you can afford — saving time and stress later.