How do I get approved to buy a home, and which loan is right for me?

What are the steps to buying a home?

1. Get pre-approved. We review your income, assets, and credit up front, so you know your real budget and sellers take your offer seriously.
2. Pick a payment, not just a price. Work backward from what fits your monthly budget. See how much house you can afford.
3. Shop and make an offer. Your agent handles the house; we keep your approval current.
4. Lock your rate once you're under contract (or earlier, if it makes sense).
5. Appraisal and underwriting. We order the appraisal, clear conditions, and keep you posted.
6. Close and get your keys. Many purchases close in about 30 days; timing varies with the loan and the deal.

Which loan fits me?

Loan	Down payment	Good fit for	Good to know
Conventional	As little as 3% for first-time buyers; 5%+ otherwise	Good credit and steady income	Mortgage insurance drops off as you build equity
FHA	3.5% with a 580+ credit score	Lower scores or higher debt-to-income	Mortgage insurance usually stays for the life of the loan unless you put 10% down
VA	Often 0% for eligible veterans and service members	Veterans, active duty, some surviving spouses	No monthly mortgage insurance; a funding fee applies unless you're exempt
Non-QM	Typically 10% or more	Self-employed, 1099, or bank-statement income	Rates are higher; built for income that doesn't fit a tax return

Not sure which one you are? That's exactly what the first call is for.

What does buying a home really cost?

• Down payment: from 0% (VA) to 20% or more, depending on the loan.
• Earnest money deposit: often 1% to 3% of the price, credited to you at closing.
• Closing costs: commonly 2% to 5% of the loan amount: lender fees, appraisal, title, escrow, and prepaid taxes and insurance. These vary by state and by loan, so I'll give you an exact Loan Estimate for your deal.
• Points (optional): you can pay upfront to lower your rate, or take a slightly higher rate for lower costs. I'll show you both.
• Help is out there: see down payment assistance in CA, TX, FL, and CO, and sellers can often contribute toward your closing costs.

Example scenario (illustrative)

A first-time buyer in San Antonio has a 640 credit score, steady W-2 income, and about $15,000 saved. We pre-approve her for an FHA loan on a home around $325,000 with 3.5% down, and her agent negotiates a seller credit toward closing costs. She knows her payment, her cash to close, and our costs before she ever makes an offer.

Our take

Get pre-approved before you fall in love with a house, and shop by payment, not by the biggest number a lender will approve. I'll put conventional, FHA, and VA side by side for you, with every fee on paper, so you can pick with your eyes open.