Mortgage Basics

    Everything you need to know to get started on your homebuying journey.

    What is a Mortgage?

    A mortgage is a loan specifically used to purchase or refinance a home. The property serves as collateral for the loan.

    Interest Rates

    The interest rate is the cost of borrowing money. It can be fixed (stays the same) or adjustable (changes over time).

    Down Payments

    A down payment is the upfront portion of the home price you pay out of pocket. Many programs allow 3% to 5% down, or even 0% for VA and USDA loans.

    Pre-Approval

    A pre-approval is a lender's commitment to loan you a specific amount based on verified financial information. It shows sellers you are a serious buyer.