FAQ
Straight questions. Straight answers.
Search by topic, or type a question.
Getting started
How do I buy my first house?
Get pre-approved first, set a comfortable monthly payment, then start shopping.
How much house can I afford?
Start with the monthly payment you can comfortably afford—not the maximum a lender says you qualify for.
How much money do I need to buy a house?
Potentially as little as 3% down plus closing costs—and sometimes even less.
Do I need 20% down?
No—many first-time buyers purchase with just 3% to 5% down.
Should I buy or keep renting?
It depends on your payment, savings, plans, and how long you expect to stay.
Should I talk to a realtor or lender first?
Talk to a lender first so you know your budget before you fall in love with a house.
How long does buying a house take?
Once you’re under contract, most purchases close in roughly 3–6 weeks.
Down payment
Can I buy a house with 3% down?
Yes—some conventional programs allow qualified first-time buyers to put just 3% down.
Can I buy a house with no money down?
Yes—VA and USDA loans can offer 0% down for eligible borrowers.
Is 5% down enough?
Absolutely—5% down is common and lets you keep more money in savings.
Should I put 20% down to avoid PMI?
Not automatically—keeping cash in the bank can sometimes be more valuable than avoiding PMI.
Can my parents help with my down payment?
Yes—eligible family members can generally gift money toward your down payment and closing costs.
Can my parents pay all of my down payment?
In many cases, yes—your entire required down payment can come from an eligible gift.
Should I put more down or keep the cash?
Don’t drain your savings just to make your mortgage payment a little smaller.
Credit
What credit score do I need to buy a house?
You don’t need perfect credit—loan options exist across a wide range of credit scores.
Does getting pre-approved hurt my credit?
A hard mortgage inquiry can affect your score slightly, but mortgage-shopping inquiries are generally grouped within a designated shopping window.
Does my credit score affect my mortgage rate?
Yes—a stronger credit profile can mean better pricing and cheaper PMI.
Should I pay off my credit cards before buying?
Maybe—reducing certain monthly debts can improve your qualification more than simply increasing your down payment.
Should I pay off my car before buying a house?
Sometimes—eliminating a large monthly payment can dramatically increase your buying power.
Why is my mortgage credit score different from Credit Karma?
Mortgage lenders use different scoring models than many consumer credit apps.
Mortgage rates
What is a good mortgage rate?
A good rate is the best combination of rate AND fees available for your specific situation.
Why did two lenders give me different rates?
Because lenders have different pricing, margins, fees, and loan programs.
Should I shop multiple mortgage lenders?
Yes—a mortgage is one of the biggest purchases you’ll ever make, so compare it.
Will shopping mortgage lenders destroy my credit?
No—credit-scoring models generally provide a shopping window for mortgage inquiries.
Bank or mortgage broker?
Banks sell their own products; brokers can shop among multiple wholesale lenders.
Can I negotiate my mortgage rate?
You can absolutely compare pricing and ask a lender to compete.
Should I pay points for a lower rate?
Only if the upfront cost makes sense compared with how long you expect to keep the mortgage.
Should I lock my rate or wait?
The closer you are to closing, the more risk you take by continuing to float.
What if rates drop after I buy?
You may be able to refinance later—you aren’t married to your mortgage rate.
Monthly payment
What’s actually included in my mortgage payment?
Usually principal, interest, property taxes, homeowners insurance, and possibly mortgage insurance or HOA dues.
How much should I spend on my mortgage?
What you can qualify for and what you can comfortably afford are two different numbers.
Why is my actual payment higher than an online calculator?
Many calculators underestimate or leave out taxes, insurance, PMI, and HOA dues.
Does my car payment affect how much house I can afford?
Yes—monthly debt payments directly affect your debt-to-income ratio.
Do student loans affect my mortgage?
Usually yes, although exactly how they’re counted depends on the loan program.
What is DTI?
Debt-to-income ratio is simply your monthly debt payments divided by your gross monthly income.
PMI
What is PMI?
PMI is mortgage insurance that often allows you to buy a home without putting 20% down.
Is PMI bad?
Not necessarily—cheap PMI can be a useful tool if it helps you buy sooner or preserve cash.
How much does PMI cost?
It varies significantly based on credit, down payment, loan amount, and other factors.
Can PMI eventually go away?
On many conventional loans, yes, once you meet the applicable equity and loan requirements.
Should I wait until I have 20% to avoid PMI?
Don’t spend years chasing 20% down without comparing the potential cost of waiting.
Closing costs
What are closing costs?
They’re the lender, title, appraisal, tax, insurance, and other costs associated with buying and financing the home.
How much are closing costs?
They vary by loan and location, so ask for an actual Loan Estimate instead of relying on a generic percentage.
Can the seller pay my closing costs?
Yes—many loan programs allow seller concessions within certain limits.
Can my lender pay my closing costs?
Potentially—a lender credit can cover some costs in exchange for different loan pricing.
Can I roll closing costs into my mortgage?
Usually not on a purchase, but credits and concessions can reduce how much cash you bring.
What are junk fees?
They’re unnecessary or excessive lender charges that make an attractive rate more expensive than it looks.
First-time buyer reality checks
What’s the biggest first-time homebuyer mistake?
Shopping for the house before understanding the financing.
Should I use every dollar I have for the down payment?
Usually not—being a homeowner with zero emergency savings is a dangerous position.
Should I buy the most expensive house I qualify for?
No—your lender doesn’t know your lifestyle, goals, or what helps you sleep at night.
Should I wait for mortgage rates to fall?
Maybe, but lower rates can also bring more buyers and more competition into the market.
Should I wait for home prices to crash?
Trying to perfectly time the housing market is much harder than buying when the numbers work for you.
Can I switch lenders after my offer is accepted?
Usually yes, as long as the new lender can meet your contract and closing deadlines.
How do I know if I’m getting a good mortgage deal?
Compare the same rate, on the same day, with the same loan assumptions and lender costs.
What’s more important: rate or fees?
Neither by itself—the true cost of the mortgage is the combination of both.
What should I ask every mortgage lender?
“Why should I work with you instead of the other thousands of lenders I could choose?”
How do I avoid becoming house poor?
Choose your payment based on your real-life budget, not your maximum approval.
What’s the smartest first-time buyer strategy?
Understand your financing first, preserve cash when possible, and compare your mortgage before committing.
Explain buying a house like I’m 15.
Figure out your budget, get approved for the money, find the house, inspect it, finance it, close, and get the keys.
One last thing
Let’s get you
your Pure Rate.
No hard credit pull · No SSN · No hidden fees
Takes under 60 seconds · No obligation