Lets you know that financing your home is simpler than you think. You should focus on your ability to qualify for the mortgage amount, your down payment and your closing costs.

Lenders require you to pre-qualify* for a mortgage amount before you apply for a loan. In the pre-qualification stage, you will find out how much you can afford to buy and your credit will be checked. The lender will begin the process to pre-approve you for a loan when you make an offer on a home or before. A letter from your lender or your mortgage broker saying you have been pre-qualified for a loan is a strong bargaining chip when you make an offer on a home. For an estimate of how much you can afford, please go to the calculator on this site.

Down payment. Most lenders require a down payment of 0%-20% of the home price. The type of loan you obtain determines the amount of your down payment. The three types of loans are conventional loans, VA loans and FHA loans. Conventional loans generally require a minimum downpayment of 10%. VA and FHA vary in their downpayment requirements but generally range from 0% to 5%.

Closing Costs. Closing costs are typically 2%-5% of your loan amount and due in cash at the time of closing. Sometimes closing costs can be included in your loan.