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The down payment requirement varies by loan type. Conventional loans typically require 3-20% down, FHA loans require as little as 3.5%, VA loans offer 0% down payment for eligible veterans, and USDA loans also offer 0% down for rural properties. While 20% down helps you avoid private mortgage insurance (PMI), many buyers purchase homes with much less.

Credit score requirements vary by loan type: Conventional loans typically require 620+, FHA loans may accept scores as low as 580 (or 500 with 10% down), VA loans have no official minimum but most lenders want 620+, and USDA loans typically require 640+. Higher credit scores generally qualify you for better interest rates.

A common guideline is that your monthly housing costs should not exceed 28% of your gross monthly income, and total debt payments should stay under 36%. Lenders also look at your debt-to-income ratio (DTI). Use our affordability calculator to get a personalized estimate based on your income, debts, and down payment.

Closing costs are fees paid at the end of a real estate transaction, typically ranging from 2-5% of the home's purchase price. They include loan origination fees, appraisal fees, title insurance, attorney fees, prepaid taxes and insurance, and more. On a $300,000 home, expect to pay $6,000-$15,000 in closing costs.

Yes, getting pre-approved is highly recommended. Pre-approval tells you exactly how much you can borrow, strengthens your offers to sellers, speeds up the closing process once you find a home, and helps you shop within your budget. It's free and typically takes just a few days.