Before stepping foot inside a house, it is crucial to get your financing dialed in. We want to ensure you find a home you can confidently afford without financial surprises at the closing table. Here are six crucial things to consider when it comes to financing your home purchase.

• Choosing Your Lender: Select a trustworthy lender who delivers on their promises, keeping an eye out for hidden fees rather than just the lowest interest rate. Make sure to get a pre-approval letter before we write an offer.
• MAX vs. PITI: Instead of shopping at your absolute “MAX” loan amount, focus on your ideal “PITI” (Principal, Interest, Taxes, and Insurance) so you aren’t left “house poor” with no discretionary income.
• Types of Financing: Work with your lender to determine the best loan product (Conventional, FHA, VA) and check for down payment assistance, as the type of financing dictates exactly how we structure your offer.
• Your “Cash-to-Close”: Remember that your total cash-to-close includes more than just your down payment; it also covers closing costs (typically around 3% of the purchase price) and prepaids/escrow.
• Timeline: Lenders typically need about 30 days to close after a signed purchase agreement, so get pre-approved well before looking at homes and promptly provide all requested documents.
• Do’s and Don’ts: Protect your pre-approval by avoiding new lines of credit, major purchases (like cars or furniture), or moving large sums of money without consulting your lender first.