The majority of loan programs require a typical FICO credit score of 620 or higher. The higher the score, the better chance you have of being approved by a lender. If you do have a lower credit score, it might require more money upfront (or a high interest rate) to mitigate the lenders perceived risk.

Earnest money is often referred to as a "good faith deposit", to show the buyer you are serious about purchasing the property. It is typically 1-2% of the homes final selling price, and is held in an escrow account when the offer is submitted. If your offer is accepted, the earnest money is put towards the downpayment or closing costs. Depending on the contingencies outlined in the offer, the earnest money can sometimes be forfeited to the seller if the sale falls through.

The national average for down payments is 11%, for both first time and repeat buyers. Typically, first time home buyers usually only put down 3-5% on a home. A FHA loan requires a 3.5% downpayment. VA loans and USDA loans can be made with zero down. If your downpayment is less than 20% of the purchase price, most lenders require the purchase of PMI (private mortgage insurance). If you are unsure of what loan type you qualify for, or have questions, fill out the form above for a better understanding of your options! Lets figure it out together.

Closing costs for homebuyers typically range from 2-5% of the homes purchase price. These costs cover various fees and expenses associated with the finalizing of a real estate transaction. Common costs of closing include lender fees, title and escrow fees, home inspection and appraisal fees, attorney fees, property taxes and homeowners insurance, and HOA fees if they apply.