Frequently Asked Questions
Got Questions? We’ve Got Answers.
First Time Home Buyer
Q: I've never bought a home before. Where do I even start?
A: You're not alone! Start with a free consultation. We'll talk about your goals, timeline, budget, and what it takes to get pre-approved for a loan. There's no obligation. Just an honest conversation about what you're looking for. Once we understand your needs, we'll guide you through the entire process step by step.
Q: What does it mean to be "pre-approved" for a mortgage?
A: Pre-approval means a lender has reviewed your financial information and determined how much you can borrow. It shows sellers you're serious and puts you in a competitive position when making an offer. I'll connect you with a loan officer who will walk you through the process.
Q: How much do I need for a down payment?
A: Down payment requirements vary by loan type. Some first-time buyer programs allow as little as 0 - 5% down, while others may require more. This is something we'll discuss with your lender during pre-approval.
Q: What are closing costs, and how much will they be?
Q: What credit score do I need to buy a home?
Q: How long does it take to buy a home?
Q: What's the difference between pre-qualification and pre-approval?
Q: Can I buy a home if I have bad credit?
VETERAN & MILITARY FAMILY QUESTIONS
Q: Can I really buy with $0 down as a veteran?
Q: What credit score do I need for a VA loan?
Q: What is a VA funding fee?
Q: Can I combine VA loans with down payment assistance?
Q: What is a Certificate of Eligibility (COE)?
Q: Do VA loans require private mortgage insurance?
NEW CONSTRUCTION QUESTIONS
Q: How long does it take to build a home?
Q: Can I negotiate on a new construction home?
Q: What's the difference between a inventory home and a custom home?
Q: What's included vs. what are upgrades?
Q: Do I need a construction loan?
Q: What happens after my offer is accepted?
Q: What is an appraisal and why does the lender need one?
Q: What's the difference between a fixed-rate and adjustable-rate mortgage (ARM)?
A: Closing costs are fees associated with finalizing your home purchase (typically 2-5% of the purchase price). These include appraisal fees, title insurance, attorney fees, and more. Your lender will provide an estimate upfront so there are no surprises at closing.
A: Most loan programs start around 620, but higher scores mean better rates. FHA loans are more flexible with credit scores, while conventional loans typically prefer 680 or above. The VA doesn't set a minimum credit score, but lenders do many accept 580 and higher with compensating factors like stable employment and residual income. If you have less than perfect credit, don't assume you'll be denied. Work with a lender who can review your complete financial picture, not just your score.
A: On average, home buyers spend between 10 and 30 days searching for a home, then an additional 15 to 45 days to close after their offer is accepted. The total timeline from search to closing typically runs 30-90 days. The exact timeline depends on your lender's underwriting speed, inspection timeline, and market conditions. Having pre-approval before you start shopping will speed things up significantly.
A: Yes. Having less than perfect credit doesn't automatically disqualify you. Many lenders work with borrowers who have credit challenges. FHA loans accept credit scores as low as 580 with 3.5% down, or 500 with 10% down. VA loans accept borrowers with lower credit scores if they demonstrate strong compensating factors. The key is finding a lender who looks at your entire financial picture, not just your credit score.
A: Often, yes. Many eligible veterans with full VA entitlement can purchase with no down payment. You may still pay some closing costs and a one time VA funding fee (unless you're exempt), but the down payment itself is not required. First time VA buyers close with as little as $1,500 to $3,000 in out-of-pocket costs when seller concessions cover closing fees. Some borrowers choose to make a down payment to reduce their monthly costs, but it's not required for most.
A: The VA itself doesn't set a minimum credit score, it's lenders who do. Many look for about 620 for smoother automated approvals, but some accept lower scores if your income, residual income, and recent payment history are strong. Veterans with credit scores below 580 may still be eligible through manual underwriting, where a VA underwriter evaluates your complete financial picture, stable employment, residual income exceeding VA minimums, on-time rental payment history, and documented savings rather than declining based on a number alone.
A: The VA funding fee is a one time fee (2.15% on first use with no down payment) that replaces the need for private mortgage insurance. It protects VA loans for future veterans by helping keep the program solvent. Veterans receiving VA disability compensation, surviving spouses, and Purple Heart recipients are exempt from this fee entirely. Disabled veterans rated 10% or higher by the VA pay no funding fee. The fee can be rolled into your loan amount or paid at closing—ask your lender which option works best for your situation.
A: A COE is the document your lender needs to confirm you qualify for a VA loan based on your service history and duty status. Eligibility depends on your length of service, service period (wartime or peacetime), and character of discharge. Active duty service members typically need 90 continuous days of service. Veterans' requirements vary by when and how long they served. You can request a COE online through VA.gov, ask your lender to submit an application for you, or fill out VA Form 26-1880. Once issued, a COE can be reused for future VA loan applications.
A: No. VA loans skip private mortgage insurance entirely. one of the biggest advantages over conventional loans. VA loans also typically offer competitive interest rates (often 0.25-0.50 percentage points below comparable conventional loans) and cap what lenders can charge in origination fees. Conventional borrowers who put down less than 20% pay PMI, often $100-$300 per month on a median-priced home. Veterans with VA loans avoid this cost entirely, making VA financing one of the most powerful homeownership benefits available.
A: A ground up build usually takes around six months, though material shortages, weather, and permits may extend it. Some builders currently report 7-9 month timelines due to supply chain factors. The timeline varies based on the stage at which you contract a move in ready inventory home closes much faster than a home starting from dirt. Always ask your builder for an estimated schedule from groundbreaking to closing, and understand known risks like weather dependent phases.
A: Yes! Builders often have flexibility on pricing, especially if the market is slower or you're buying early in a development. You can negotiate the price, builder incentives (like mortgage rate buydowns), included upgrades, or closing cost assistance. In today's market, 61% of builders offered sales incentives in 2025, with mortgage rate buydowns being the most popular.
A: A inventory home is builder selected and pre built or under construction. The builder has already made design choices and you get it move in ready. Typically on inventory homes, the builder is more negotiable. A custom home is built to your specifications on your land or a builder lot. You choose floor plan, finishes, and features, but construction takes longer (typically 6+ months) and costs more. Semi-custom homes split the difference. limited design selections, faster than full custom.
A: Standard features vary by builder and floor plan. Always ask for a list of what's included in the base price. That gorgeous kitchen backsplash in the model home? Probably a $3,000+ upgrade. Premium appliances, stone countertops, and designer lighting are often upgrades. Ask your builder for a base price spec sheet showing what actually comes standard.
A: When you buy a new construction home in a community, the builder typically carries the construction loan. You place a deposit (earnest money) and close on a traditional mortgage once construction is complete. If you're building on your own land, you'll need a construction loan a short term loan that funds construction phases and converts to a permanent mortgage at completion. Construction to permanent loans handle this transition automatically. If you're buying a spec or semi built home, you likely won't need a construction loan.
Q: Can I choose my finishes and customizations?
Q: What is a home inspection and why do I need one?
Q: What are closing costs and how much will they be?
A: Your choices depend on when you contract. If construction hasn't started or is very early, you may have more design selections for flooring, cabinetry, paint, countertops, and layout options. The earlier you commit, the more choices you have. Later in construction, fewer selections remain. Ask your builder about included finishes versus upgrade options, layout tweaks, and whether they offer smart home packages or energy efficient upgrades. Customization often adds to the price, but a few carefully chosen upgrades like better insulation or work from home ready layouts pay off over time.
THE HOME BUYING PROCESS QUESTIONS
Q: How long is the inspection period?
Q: What should I expect at closing?
A: A home inspection is an objective assessment of the home's condition, performed by a licensed professional. They examine the structure, foundation, roof, HVAC, plumbing, electrical systems, and more. While the VA appraisal process checks minimum property standards, a home inspection goes deeper. It protects you by identifying defects you might not see. If issues are found, you can negotiate repairs, request credits, or ask the seller to fix them before closing. Home inspections typically cost $400-600 and are highly recommended, even for new homes.
A: Once your offer is accepted, you move into the "pending" phase. Your lender begins the underwriting process to finalize your mortgage. You'll schedule a home inspection (usually within 7-10 days). If issues are found, we will negotiate with the seller. An appraisal is ordered to ensure the home's value matches your purchase price. You'll also do a "final walkthrough" 24 hours before closing to confirm any agreed-upon repairs are done and the home is in expected condition. Avoid making big financial changes during this period don't finance a car or open new credit.
A: The inspection period is typically 7-10 days after your offer is accepted, though you can negotiate this timeline. During this window, you hire an inspector to examine the property. If major issues are found, you can request repairs, closing credits, or price reductions from the seller. The inspection period is your biggest leverage point to negotiate repairs so use it wisely. If no issues exist, simply let the inspection period expire and move forward.
A: An appraisal is an independent assessment of the home's value. Lenders require it to ensure the home is worth what you're paying for it. An appraiser examines the property, analyzes comparable sales, and provides a written value opinion. If the appraisal comes in lower than your purchase price, you have options: renegotiate the sales price, request a Reconsideration of Value based on new comparable sales data, or cover the difference at closing. Appraisals typically take 7-10 days and cost $600-800 (usually paid by you, though sometimes the seller contributes).
A: Closing costs are fees paid at the final step of your home purchase. Typically 2% to 5% of the loan amount. On a $300,000 loan, that's $6,000-$15,000. They include lender origination fees, appraisal, title insurance, attorney fees, credit report fees, property taxes, homeowners insurance prepayment, and more. Your lender must provide a Closing Disclosure at least 3 business days before closing detailing all costs. In a buyer's market, you can ask the seller to cover a portion of closing costs as a concession this is easier to negotiate than a headline price cut.
FINANCING & AFFORDABILITY QUESTIONS
Q: How much house can I afford?
Q: What is debt-to-income ratio (DTI) and why does it matter?
Q: What is private mortgage insurance (PMI) and how much will it cost?
Q: Should I buy discount points to lower my interest rate?
Q: What if I have bad credit or a complicated financial situation?
A: Pre-qualification is a quick, informal estimate based on self reported financial information. No credit check required. Pre-approval is much more thorough. It involves a full application, credit pull, and documentation verification, resulting in a conditional commitment letter from your lender. Sellers prefer pre-approval because it shows you're serious and have financing lined up. In competitive markets, pre-approval is essential to make your offer stand out.
A: Yes. Most veterans don't realize this. VA loans can be combined with down payment assistance (DPA) grants and first-time buyer programs offered by state housing finance agencies. State programs offer closing cost grants or forgivable second mortgages. Military-specific grants from organizations like Homes for Heroes offer closing cost assistance specifically for Veterans. Local city/county programs may offer $5,000-$15,000 in closing cost or repair assistance.
A: Closing day is when everything becomes official. Your lender gives you a Closing Disclosure at least 3 business days beforehand read it carefully. At closing, you'll review and sign loan documents, sign the deed of trust, and transfer funds. The seller signs transfer documents. Title is transferred, the loan is funded, keys are handed over, and you officially become a homeowner. Closing typically happens at a title company, escrow office, or attorney's office. Plan for 1-2 hours. Bring a valid ID and any documents your lender requested. Once documents are signed and the loan is funded, the process is complete. You're done!
A: This has two answers: what a lender approves you for, and what you should comfortably spend. Lenders use your debt-to-income ratio to determine maximum approval. But qualifying doesn't mean it's comfortable. A general guideline; keep your monthly housing costs (mortgage, property taxes, insurance) to no more than 28-30% of your gross monthly income. Budget for maintenance (1-2% of home value annually), property taxes, homeowners insurance, HOA fees if applicable, and utilities. Don't spend your entire down payment savings keep 3-6 months of expenses in reserve for emergencies and maintenance.
A: Your DTI is your total monthly debt obligations divided by your gross monthly income, expressed as a percentage. Lenders typically want housing expenses below 28% of gross income and total monthly debt below 36% to 43% of gross income. Example: if you earn $5,000 per month gross and have $1,500 in existing debts plus a proposed $1,200 mortgage payment, your total is $2,700, or 54% DTI which is likely too high. If proposed housing is 28-30% and total debt is 36-43%, you're in a comfortable range for lenders and your own budget.
A: PMI protects the lender if you default, and it's required on conventional loans with less than 20% down. It costs roughly 0.5-1% of the loan annually. Example: on a $280,000 loan with 10% down, PMI might run $117-234 per month. You can avoid it by putting 20% down or using a VA loan (which has no PMI). On conventional loans, you can remove PMI once you reach 78% loan to value through home appreciation or extra payments, but that takes time. Some lenders offer "lender paid mortgage insurance" where they roll the cost into your interest rate ask which option is best for your situation.
A: Maybe. One point equals 1% of your loan amount paid upfront at closing and lowers your rate by roughly 0.25%. On a $350,000 loan, one point costs $3,500. If it reduces your rate from 6.75% to 6.50%, you save about $58 per month. Break even is $3,500 ÷ $58 = roughly 60 months (5 years). If you plan to stay in the home past 5 years, buying points makes financial sense. If you might sell or refinance within 5 years, keep your cash. Always ask your loan officer to run side-by-side comparisons before deciding.
A: A fixed-rate mortgage has the same interest rate for the entire loan term (typically 15 or 30 years), making payments predictable and stable. An adjustable-rate mortgage (ARM) starts with a lower fixed rate for 5, 7, or 10 years, then adjusts annually based on market indexes. A 7/1 ARM is fixed for 7 years, then adjusts yearly after. ARMs make sense if you plan to sell or refinance before the rate adjusts. In a higher rate environment, ARMs can offer meaningful upfront savings but always model the worst case rate cap scenario before committing. Fixed rate mortgages are safer if you plan to stay long-term.
A: Don't give up. Many lenders work with borrowers facing credit challenges, self-employment income, past bankruptcies, or other complications. FHA loans accept credit scores as low as 580. VA loans don't require a specific credit score and use manual underwriting to evaluate your full financial picture. Conventional loans require higher scores but some lenders have flexible overlays. Be prepared to explain your situation upfront. Show compensating factors like stable employment, strong savings, on time rental history, or residual income. Working with a lender experienced in complex situations often makes the difference between denial and approval.
OFFERS & NEGOTIATIONS QUESTIONS
Q: How much can I negotiate off the asking price?
A: Most buyers can negotiate 1-10% off asking price, with leverage varying by market conditions. In a buyer's market (more homes for sale than buyers), you typically have room to offer 5-10% below asking. In a seller's market (homes sell quickly), offers at asking price are common. The biggest leverage signal is days on market: homes listed 60+ days usually signal a motivated seller willing to negotiate. Homes under 14 days rarely discount. Use comparable sales (comps) to back up your offer data driven offers based on recent similar home sales are harder to dismiss than opinions.
Q: What can I negotiate besides the price?
A: Price is just the headline number. You can also negotiate closing costs (seller covers a portion), repairs (seller fixes or credits for issues found in inspection), appliances and fixtures (refrigerator, washer/dryer, window treatments), closing timeline (adjust based on seller's needs), earnest money amount, and inspection period length. In today's market, some of the best deals are structured around concessions and terms rather than the sticker price alone. A seller who won't budge on price might agree to pay closing costs or repair credits.
Q: Should I ask the seller to pay my closing costs?
A: It depends on the market. In a buyer's market, yes ask for it. In a competitive seller's market, you might get less traction. Closing costs typically run 2-5% of the loan amount. On a $300,000 purchase, that's $6,000-$15,000. If the seller won't reduce the asking price, they may cover closing costs as a concession to close the sale faster. Never miss the chance to negotiate this many sellers expect it.
Q: How do I make my offer stand out in a competitive market?
A: Get pre-approved before house hunting it's essential. Make a strong, competitive offer backed by data (comparable sales showing the market value). Limit unnecessary contingencies to strengthen your appeal. In hot markets, consider flexibility on your inspection timeline or closing date if the seller has specific needs. Show you're a serious buyer who can close on schedule. If you can afford it, earnest money above standard amounts signals confidence. Your agent can also explain your personal story if appropriate sellers are more likely to work with buyers they feel good about.
Q: What is earnest money and how much should I offer?
A: Earnest money is a deposit (typically 1% of purchase price) that shows the seller you're serious about buying. It's held in escrow and applied to your down payment at closing. Example: on a $300,000 home, earnest money might be $3,000. If you back out for valid reasons (inspection issues, appraisal problems, financing denial), you get it back. If you walk away for no reason, you lose it. In competitive markets, offering earnest money above standard amounts (1%+) can make your offer more attractive and signals you're confident in the purchase.
Q: Can I negotiate after the home inspection?
A: Yes! If the inspection reveals issues, you have leverage. You can ask the seller to repair them, provide a credit at closing toward repairs, or reduce the price. If major issues are found (roof, foundation, HVAC), this is your biggest negotiation moment. Ask your inspector: "What are the top three issues, what's normal wear, what should I push to negotiate, and what should I plan to fix after moving in?" Use this guidance to prioritize requests. Some repairs are deal breakers; others can wait. Experienced agents know how to navigate this conversation so you get fair concessions without killing the deal.
Ready to Start Your Journey?
Have a question that's not answered here? Reach out! I'm always happy to discuss your specific situation and provide personalized guidance.