Before you can shop for a home with confidence, it’s smart to get preapproved for a mortgage. Preapproval gives you a clear idea of how much a lender is likely to offer based on your financial profile. To make that determination, lenders will need to verify several aspects of your financial situation—including your income, assets, debts, and credit history. Having all your documents ready can make the process faster and smoother.

One of the first things your lender will look at is your employment and income. Expect to provide pay stubs from the past 30 days, W-2s and tax returns from the last two years, and recent bank statements. If you’re self-employed, you’ll need to provide additional documentation, such as business tax returns or profit and loss statements. Other sources of income like child support, Social Security, or pension payments should also be documented.

Lenders will also evaluate your assets and debts to get a complete picture of your financial health. You’ll need to submit account statements for retirement savings, investments, and any additional real estate you own. At the same time, you’ll provide recent statements for your outstanding debts—auto loans, credit cards, student loans, and more. This information helps calculate your debt-to-income ratio, a key factor in determining how much house you can afford.

Don’t forget identification and any situation-specific paperwork. You’ll need to provide a government-issued ID and Social Security card, and if someone is gifting you part of your down payment, you’ll need a gift letter as well. Buyers using VA loan benefits will need to include a Certificate of Eligibility. With all your documents in hand, you’ll be better positioned to secure preapproval and confidently move forward in your homebuying journey. Of course if you are thinking about getting preapproved fill out our 90 second prequalifier on our website and we will get the ball rolling!

Closing on a home is an exciting milestone, but it’s also a process that involves a lot of moving parts. From the time your offer is accepted to the moment you get your keys, there are several steps that must be completed by both you and your lender. While the process can take several weeks, proper preparation can help things go more smoothly and reduce the chances of delays along the way.

Once you reach closing day, you’ll finalize the purchase by signing a series of documents, paying any remaining closing costs, and receiving the keys to your new home. You may be joined by your real estate agent, the seller, a closing agent, and potentially an attorney. The documents you’ll review include your closing disclosure, loan agreement, mortgage note, and more. It’s important to review everything carefully, and don’t hesitate to ask for clarification if something doesn’t make sense.

Leading up to closing, you’ll need to complete several important tasks. These include getting a home inspection, securing homeowners insurance, submitting required paperwork to your lender, and confirming your closing date. You should also do a final walk-through of the property to ensure everything is in the agreed-upon condition. Additionally, you’ll need to prepare your funds—usually via wire transfer or cashier’s check—to cover your down payment and closing costs.

While the average time to close on a home is just over 40 days, things like title issues, low appraisals, or financing delays can push that timeline. The best way to avoid surprises is to stay organized and responsive throughout the process. With the right support and preparation, you’ll soon be celebrating in your new home, ready to start the next chapter.

When it comes to first-time homebuying, understanding what constitutes a “typical” down payment can make the process feel a lot more attainable. In 2024, the median down payment among first-time buyers was 9 percent of the purchase price—meaning on a $400,000 home, most newcomers put down about $36,000. However, loan programs tailored for first-timers often let you start with as little as 3 percent down, and government-backed options like VA or USDA loans may even require zero down.

Deciding on your down payment is all about weighing the trade-offs. A 20 percent down payment is considered ideal: it typically secures the lowest interest rates and lets you bypass private mortgage insurance (PMI) altogether. But given the median amortization patterns, very few first-timers reach that benchmark right out of the gate—only about one-third manage to save it, while the majority settle somewhere between 3 percent and 10 percent.

Putting down less than 20 percent has its own advantages. By starting with just 3 percent or 5 percent down, you’re able to enter the market sooner—locking in today’s prices before they climb further—while preserving cash for closing costs, moving expenses, and the small repairs that inevitably arise. Just keep in mind that any down payment under 20 percent brings PMI, which can add roughly $30–$70 per month for every $100,000 you borrow, and means higher monthly payments until you accrue enough equity.

The right “typical” down payment for you will hinge on your personal comfort level and long-term goals. If you can pull together 10 percent, you’ll strike a solid balance between a lower interest rate and retained reserves. If your priority is getting into a home quickly, a 3 percent or even zero-down option can make sense—knowing you can eliminate PMI once you hit 20 percent equity. Ready to crunch the numbers for your specific situation? Schedule a free consultation on our website, and we’ll help you determine the down payment strategy that fits your budget and goals.

A 3/1 adjustable-rate mortgage (ARM) offers homebuyers a fixed interest rate for the first three years of their loan, followed by annual rate adjustments for the remaining term. During the initial three-year period, your monthly payments remain consistent, giving you the predictability of a traditional fixed-rate mortgage. After those introductory years, however, the interest rate can adjust once per year based on market indexes—such as Treasury yields or the Secured Overnight Financing Rate—plus a set margin determined by the lender.

Once the three-year fixed period ends, the annual rate adjustments are governed by caps that limit how much your interest rate can increase at each adjustment and over the life of the loan. For example, an initial adjustment cap might restrict your rate from rising more than 2 percentage points at the first change, while a periodic cap might cap future annual adjustments at 1 percentage point. A lifetime cap establishes the maximum interest rate you could ever be charged under this ARM, ensuring that, even if market rates spike dramatically, you’ll never pay beyond a specified ceiling.

There are several scenarios in which a 3/1 ARM may make sense. If you plan to sell or refinance within three to five years, you can take advantage of the lower introductory rate without worrying about long-term volatility. Similarly, if you anticipate a career change or relocation in the near future, the short fixed period allows you to maximize savings in the early years. On the flip side, borrowers should be comfortable with the possibility of higher payments after year three—if market rates rise, so will your monthly mortgage payment. It’s crucial to have a financial cushion or a plan in place to absorb potential increases.

Compared to a 30-year fixed-rate mortgage, a 3/1 ARM typically starts with a lower rate, which can translate to significant upfront savings. However, it carries more uncertainty than a fixed-rate loan, especially if you keep the mortgage beyond the fixed period. If you value long-term stability and predictability, a fixed-rate option might be preferable. But for many buyers who intend to move or refinance before the rate adjusts, a 3/1 ARM can offer an attractive balance of lower initial costs and manageable risk. If you’d like to know more, schedule a consultation with us on our website.