Homebuyer Basics

Step-by-step guidance for first-time and repeat homebuyers, from pre-approval through closing and beyond.

When Should You Talk to a Lender?

You usually should talk to a lender before you seriously shop, because income, debt, available cash, and credit shape the workable payment range long before a house is chosen.

Homebuyer Basics: From Pre-Approval to Closing

A home purchase moves through seven practical stages: pre-approval, shopping, the offer, inspections, lender review, final approval, and closing.

What Not to Do Before Closing

Once you are under contract, the goal is stability. Avoid new debt, unexplained cash movement, employment changes, and any decision that forces the lender to re-underwrite the file at the last minute.

How Lenders Calculate DTI

See how lenders actually calculate DTI using gross income, counted monthly debts, and the full housing payment, and why a few hundred dollars can materially change the workable mortgage amount.

Gift Funds Documentation Checklist for a Home Purchase

A clean gift-fund file identifies the eligible donor, intended use, source of funds, transfer path, and documents required before money moves.

Gift Funds vs. a Co-Borrower: What Changes in the File

A donor contributes eligible funds without joining the debt, while a co-borrower becomes part of the application and may add income, assets, credit, liabilities, and ownership questions.

Can Gift Funds Be Used for Reserves, Closing Costs, or Down Payment?

Gift funds may help with the down payment, closing costs, or reserves, but the permitted use and any required borrower contribution depend on the loan program and transaction.

Who Can Give You Gift Funds for a Home Purchase?

An eligible gift donor depends on the loan program. Conventional loans recognize relatives and certain family-like relationships, while FHA also permits several non-family sources.

Document Checklist for a Two-Borrower Pre-Approval

A two-borrower pre-approval usually moves better when both borrowers provide the full document set up front, including IDs, pay stubs, W-2s, and asset statements for the accounts being used.

What a Forgivable Down Payment Assistance Loan Means

Forgivable down payment assistance is usually recorded as a second mortgage. Forgiveness commonly requires three to five years of on-time first-mortgage payments, continued owner occupancy, and current property obligations, although some programs require longer.

What Happens After Your Offer Is Accepted?

Once the seller accepts an offer, the mortgage moves from planning to a deadline-driven review of the borrower, property, title, insurance, and final closing figures.