Acadiana Real Estate

The amount you need for a down payment depends on the type of loan and your financial situation. While 20% is a common benchmark, many buyers put down less—some conventional loans allow as little as 3%, and FHA loans require just 3.5%.

Pre-qualification is an estimate of how much you may be able to borrow based on information you provide to a lender. It's a quick first step but doesn't verify your financial details.

Pre-approval is a more detailed review of your income, assets, credit, and financial history. It provides a stronger indication of your borrowing power and shows sellers you're a serious buyer.

Your credit score is one of the factors lenders use to determine your mortgage interest rate. In general, a higher credit score may help you qualify for a lower rate, while a lower score could result in a higher rate or additional loan requirements. Even a small difference in your rate can impact your monthly payment and the total cost of your loan over time.

Closing costs are the fees and expenses associated with finalizing your home purchase, including lender fees, title services, insurance, taxes, and other transaction-related costs. Buyers can typically expect to pay between 2% and 5% of the home's purchase price, though the exact amount varies based on the loan, property, and location.

The homebuying process typically takes 30 to 60 days from the time an offer is accepted to closing. The timeline can vary depending on financing, inspections, appraisals, and other factors. Getting pre-approved and responding quickly to requests can help keep the process on track.

Yes. Many lenders offer mortgage options for self-employed buyers and those with non-traditional income. You may be asked to provide additional documentation, such as tax returns, bank statements, or profit and loss statements, to verify your income and ability to repay the loan. A lender can help determine which loan options best fit your situation.

Your monthly mortgage payment typically includes principal (the amount you borrowed), interest (the cost of borrowing), property taxes, and homeowners insurance. If required, it may also include private mortgage insurance (PMI) or homeowners association (HOA) fees, depending on the loan and property.

A 2-1 buydown is a temporary mortgage rate reduction that lowers your interest rate for the first two years of your loan. In the first year, the rate is typically 2% lower than the permanent rate, and in the second year, it's 1% lower. Beginning in the third year, the loan adjusts to the full fixed interest rate for the remainder of the term. A seller, builder, or lender often pays the cost of the buydown as an incentive to help reduce your initial monthly payments.

In most cases, the seller pays for the 2-1 buydown as a concession to help make the home more affordable for the buyer. In some situations, a builder or lender may also cover the cost as part of a promotional offer. The specific arrangement is negotiated as part of the purchase agreement and loan terms.