Straight Answers, No Jargon

Pre-qualification is a quick, informal estimate based on what you self-report. Pre-approval actually verifies your income, assets, and credit, and results in a conditional commitment amount — sellers take it far more seriously than a pre-qual letter.

Typically recent pay stubs, W-2s or tax returns, bank statements, and ID. Self-employed borrowers usually need two years of tax returns plus a profit-and-loss statement.

Most pre-approvals are valid 60-90 days, since they're based on a credit pull and financial snapshot that can go stale. Plan to refresh it if your home search runs longer than that.

It involves a hard credit inquiry, which can cause a small, temporary dip. Multiple mortgage inquiries within a short shopping window are usually counted as a single inquiry by most scoring models, so shopping rates doesn't multiply the damage.

Conventional loans aren't government-insured and typically want stronger credit. FHA is government-insured with lower down payment and credit requirements, but has its own mortgage insurance rules. VA is for eligible veterans and service members and allows 0% down with no monthly mortgage insurance, though most borrowers pay a one-time funding fee.

Only on a conventional loan. FHA and VA loans have their own separate mortgage-insurance or funding-fee rules regardless of down payment size.

Often yes, depending on the loan program — but it usually needs to be documented with a gift letter and a paper trail showing the funds actually moved. Ask early, since undocumented large deposits can slow underwriting down.

It varies by loan program and by lender — FHA typically allows lower scores than most conventional programs, but a higher score generally gets you a better rate on any program.

Recurring minimum payments — car loans, student loans, credit cards, other mortgages, child support. Utilities, groceries, and subscriptions don't count.

It depends on which one moves your qualifying numbers more for your specific file — worth actually running both scenarios rather than assuming. That's exactly the kind of question worth a real conversation, not a generic rule.

Commonly 30-45 days for a financed purchase, though it varies by lender, loan program, and how quickly the appraisal and inspection get scheduled.

A deposit showing you're serious about the offer, held in escrow and applied toward your down payment or closing costs at closing. It's typically refundable if you back out for a reason covered by a contingency in your contract, and at risk if you don't.

Yes — inspections catch things that aren't visible on a walkthrough, like roof age, electrical, plumbing, or foundation issues. The inspection contingency gives you room to renegotiate or walk away if something serious turns up.

Commonly 2-5% of the purchase price, covering things like the appraisal, title insurance, lender fees, and prepaid taxes and insurance. Ask for a Loan Estimate early so you're working from real numbers, not a guess.

Your rate applies only to the loan balance. APR spreads points and fees across the loan term into one comparable rate, which is why it's the better number for comparing two different loan offers apples-to-apples.

In some markets and situations, yes — a seller will sometimes contribute toward buyer closing costs as a negotiated concession. Whether that's realistic depends heavily on your specific market and price point.

On most conventional loans, it's automatically removed once you reach 22% equity, and you can usually request removal yourself at 20% equity based on original value. FHA's annual MIP has its own separate rules and often doesn't cancel the same way.

Generally once the monthly savings would recoup your closing costs within a timeframe you're actually going to stay in the home — not just because rates ticked down.

It shortens your loan and cuts total interest, since every extra dollar comes straight off the balance that interest is calculated against going forward.