SUN AND SAGE
Explore clear answers to common financing questions, from down payments and credit to affordability, closing costs, and pre approval.
Pre qualification is a self reported, informal estimate of what you can borrow; pre approval is a lender's verified, conditional commitment for a specific loan amount.
The down payment needed to buy a home ranges from 0% (VA, USDA) to 3.5% (FHA) to 3 20% (conventional and jumbo), depending on the loan type used.
The minimum credit score to buy a home ranges from 580 for FHA loans to 620+ for conventional loans and 700+ for jumbo loans.
Home affordability is calculated using a debt to income ratio that factors in income, existing debts, down payment, property taxes, and insurance.
No, 20% down is not required to buy a home. It's the threshold to avoid PMI on a conventional loan, not a minimum purchase requirement.
Closing costs are the fees and expenses due at the close of a home purchase, typically totaling 2% to 5% of the loan amount, separate from the down payment.
Yes, you can buy a home with student loan debt. Lenders factor it into your debt to income ratio using actual payments or a percentage of the balance.
Mortgage pre approval documents include pay stubs, W2s, tax returns, bank statements, a government ID, and records of any existing debts or gift funds.
