The amount you need for a down payment depends on the type of loan and your financial situation. While 20% is a common benchmark, many buyers put down less—some conventional loans allow as little as 3%, and FHA loans require just 3.5%.

Pre-qualification is a quick, informal estimate of what you might be able to borrow, based mostly on numbers you tell the lender (often no documents or full credit check).

Pre-approval is a formal, verified review where the lender checks your credit and documents (income, assets, debts) and gives you a written letter for a specific amount.

To sellers:

Pre-qualification = “Probably can buy.”
Pre-approval = “Has been vetted and is likely to get the loan.”

Your credit score mainly changes the interest rate you’re offered — which then changes your monthly payment and total cost of the loan.

Here’s the gist:

Higher credit score = lower rate

Lenders see you as less risky → they charge you less to borrow.
Even a 0.25%–1% lower rate can save tens of thousands over 30 years.
Lower credit score = higher rate (or denial)

You may still get approved, but at a higher interest rate.
In some cases, if the score is too low, you may not qualify at all or need a larger down payment.
Score “bands” matter more than tiny points

Lenders usually price by ranges (for example: 620–639, 640–659, 660–679, etc.).
Moving from one band up to the next can drop your rate noticeably, but going from 701 to 703 doesn’t change anything.

Closing costs are the fees and expenses you pay at the end of a real estate transaction to finalize the loan and transfer ownership. They’re in addition to your down payment.

What’s included?
For a buyer, closing costs usually cover things like:

Lender fees (origination, underwriting, credit report)
Appraisal
Title search and title insurance
Recording and transfer fees
Escrow/settlement fees
Prepaid items (property taxes, homeowners insurance, some prepaid interest)
For a seller, closing costs are mostly:

Real estate agent commissions
Transfer taxes (in some areas)
Title-related fees and any agreed credits to the buyer
How much should you expect?
Buyers: usually about 2%–5% of the purchase price

Example: $300,000 home → about $6,000–$15,000 in closing costs.
Sellers: often around 5%–10%, mostly because of agent commissions.

From start to keys in hand, there are really two timelines:

Home search: anywhere from a few weeks to a few months, depending on your market, budget, and how picky you are.
Offer accepted to closing:

With a mortgage: usually 30–45 days
Paying cash: can be as fast as 1–2 weeks
So for most buyers using financing, the whole process is often 1–3 months, but it can be shorter or longer depending on how quickly you find “the one” and how smooth the loan process is.

Yes, you can buy a home if you’re self-employed or have irregular income — you just get asked for more proof.

Most lenders will want to see:

At least 2 years of self-employment/income history
Tax returns and/or 1099s (often 2 years, and they usually average the income)
Business and personal bank statements
A solid debt-to-income ratio and credit score

Things to keep in mind:

Lots of write-offs on your taxes can lower the income the lender counts.
Having a larger down payment and good credit can really help.
There are also special bank-statement / non-QM loans, but they often come with higher rates and fees.

So yes—it’s absolutely possible. It just tends to be more paperwork and planning than for a W-2 employee.
 
 
 

.

Most of the time, your monthly mortgage payment is made up of PITI:

Principal – the part that pays down your actual loan balance.
Interest – the lender’s charge for letting you borrow the money.
Taxes – property taxes, often collected monthly and held in an escrow account until due.
Insurance – homeowner’s insurance, and sometimes mortgage insurance (PMI) if you put less than 20% down.

So your monthly payment is usually:

Principal + Interest + Taxes + Insurance (and sometimes PMI)
HOA (Home Owners Association) dues, if you have them, are usually a separate payment, not built into the mortgage itself (unless your lender sets it up that way).

A 2-1 buydown is a way to temporarily lower your mortgage interest rate for the first two years of the loan.

Here’s how it works:

You have a permanent “note rate” (say 6.5%) on a 30-year loan.
With a 2-1 buydown, your rate is:

Year 1: 2% lower → 4.5%
Year 2: 1% lower → 5.5%
Year 3–30: back to the full 6.5%
Because the rate is lower in years 1 and 2, your monthly payment is smaller during those years.

The difference in payment is prepaid upfront as a “buydown fund.”
That cost is usually paid by the seller, builder, or sometimes the lender as a concession (it can be paid by the buyer too).
Big picture:
A 2-1 buydown gives you payment relief for the first two years, but after that your payment rises to what it would’ve been at the full rate.

Any of them can—it’s negotiable.

Most common: the seller (or builder in new construction) pays for the 2-1 buydown as a concession to make the payment more attractive to you.
Sometimes: the lender uses a lender credit to cover it (in exchange for a slightly higher overall rate or fees).
Less common: the buyer pays it directly at closing.
Bottom line: the cost is paid upfront at closing, usually by the seller or builder, but it’s all part of what you negotiate in the purchase contract.