THE ANSWER LIBRARY
Your first home, one decision at a time
Start with a comfortable payment, the cash needed to close and the cash left afterward. Then connect those numbers to the loan documents and decisions in front of you.
328 published answers
Should I choose a 15 year or 30 year mortgage?
A shorter term usually requires faster repayment and a larger principal and interest payment for the same balance and rate. A longer term can provide more monthly flexibility but may cost more interest over time. Compare actual offers and keep taxes, insurance, cash reserves and other goals in the picture.
Read the answerWhat credit score do I need to buy a home?
There is no single credit score that guarantees a mortgage. Loan programs and lenders set different requirements, and credit is only one part of the review. Your income, debts, available cash and property also matter. Start by checking your reports and asking which score and loan rules apply to you.
Read the answerWhat happens if the appraisal is lower than the purchase price?
A lower appraisal can change the financing calculation and the cash you need. It does not automatically tell you which choice to make. Review the report, loan terms and contract options with the lender and your real estate professional or attorney. Do not assume you must bring the entire difference in cash.
Read the answerWhat happens to my earnest money deposit?
Earnest money is a deposit connected to your purchase contract. At closing it is generally credited toward the money you owe, rather than becoming an extra charge. Whether you can recover it if the deal ends depends on the contract and applicable law. Review those terms with your real estate professional or attorney.
Read the answerWhat if my credit report has an error before I buy?
Address a possible error early and tell your lender before assuming it will disappear. Gather the records that show what is wrong and use the credit reporting company’s and information provider’s dispute processes. The correction timeline and effect on a mortgage review vary. Do not build a closing plan around an unconfirmed correction.
Read the answerWhat makes a mortgage a jumbo loan?
A jumbo loan generally exceeds the applicable conforming loan limit for its location and property size. Those limits can change, and lender requirements vary. Check the current limit for the actual transaction, then compare documentation, reserves, pricing and cash needed. A larger loan is not automatically a better or worse choice.
Read the answerWhat should I check on my Closing Disclosure?
Compare the Closing Disclosure with the loan and transaction you agreed to. Check the loan amount, rate, payment, costs, credits and cash to close, then ask about changes you do not understand. Read it before signing day so there is time to resolve questions with the lender and closing professional.
Read the answerWhat should I know before using a VA home loan?
A VA home loan benefit can help an eligible borrower buy a home, but eligibility for the benefit is not the same as approval for a particular loan. The lender still reviews the borrower and property. Compare the payment, fees, cash needed and any applicable funding fee before choosing a plan.
Read the answerWhen is my first mortgage payment due after buying?
Use your closing documents and the lender’s confirmed instructions for the first due date, amount and payment destination. Do not infer the date from a friend’s purchase or assume a delay means free interest. Keep enough cash available and confirm any automatic payment setup before relying on it.
Read the answerWhen should I lock my mortgage rate?
A rate lock is an agreement about pricing for a defined period and set of conditions. Ask what it covers, when it expires and what can change the terms. Choose a lock that fits a realistic closing plan rather than assuming anyone can reliably predict the next rate move.
Read the answerWhy are there two kinds of title insurance at closing?
A lender’s title policy and an owner’s title policy protect different interests. The lender’s policy generally protects the lender’s covered interest, while an owner’s policy can protect your covered ownership interest. Review what is included, excluded and optional with the title professional. Do not assume paying for one automatically gives you both protections.
Read the answerWhy does the lender need to review the condo building?
With a condo, the lender may need to review both you and the project. Building finances, insurance, legal matters and other project characteristics can affect eligibility. Your personal preapproval does not establish that a specific condo can be financed. Start the project review early and budget for dues and possible assessments.
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