Home Buying FAQs
Answers about preparing, budgeting, financing and closing on a home purchase.
How do I estimate what home I can afford?
Start with income, recurring debts, available cash, estimated housing expenses and a comfortable monthly budget. Try the Affordability Calculator.
Should I get preapproved before shopping?
Preapproval can help clarify a potential financing range, but it is not final approval and terms can change.
Is the down payment the only upfront cost?
No. Buyers may also encounter closing costs, inspections, moving expenses, reserves and immediate property expenses.
What are closing costs?
They are transaction and financing expenses paid around closing. The exact items vary by location, lender and transaction.
How should I compare renting and buying?
Compare more than monthly rent and mortgage payment. Consider transaction costs, maintenance, taxes, insurance, time horizon and opportunity costs. Use the Rent vs Buy Calculator.
What is earnest money?
In some transactions, earnest money is a deposit submitted with an offer to demonstrate intent, subject to the purchase contract and local practice.
What is a home inspection?
An inspection is an evaluation of a property's condition by a qualified inspector; scope and requirements vary.
Why does debt-to-income matter?
DTI compares recurring debt obligations with income and is one measure lenders may consider.
Should I spend the maximum amount I qualify for?
Qualification and personal affordability are different. A comfortable budget should account for other goals, emergencies and ownership costs.
Where should a first-time buyer start?
Start with budget, credit, cash available, financing education and a step-by-step plan. Use the First-Time Home Buyer Checklist.
General educational information only; real-estate practices and financing rules vary.