The amount you'll need for a down payment depends on the type of loan and your financial situation. While 20% is a the typical benchmark, a lot of buyers put down less. With conventional, some loans allow as low as 3%, FHA loans require just 3.5% (with a certain credit score), VA (veterens and active duty military) and USDA (certain rural and suburban areas) require 0% down. New construction loans are a whole different ball game. For more information about the products that work for your financial goals, contact your lender or contact me for local lenders.

Pre-qualification is a quicker, beginning estimate of how much you can borrow based on stated but unverified income. Pre-approval takes it to the next level. This is where the lender takes a much more indepth look by verifying your financial documents, such as paystubs, credit report and tax returns in order to issue a conditional commitment for a specifed loan amount.

Closing cost generally run between 2-5% of the purchase price of the property.

The overall cost to close on a home/property include amounts prior to closing as well as amounts due at closing:

-Prior to closing: Costs generally paid prior to closing are the earnest money, credit report, inspection costs, termite infestation report, survey and appraisal. 

-Paid at closing: Costs that are paid, all or a combo of some of the items, at closing include prorated taxes, prorated HOA dues and fees, termite bond, downpayment, loan origination fee, loan discount fees/points, private mortgage insurance or MI (mortgage insurance), homeowners insurance escrow amount, title policy insurance, attorney or notary fees, property tax escrow, and wire fees (this list is not all encompassing).