Down payment and mortgage insurance
Some conventional programs allow a low down payment for qualified borrowers. A down payment below 20% generally means private mortgage insurance (PMI) is required; ask about the cost, cancellation requirements and any exceptions.
Compare cash to close as well as the monthly payment. A larger down payment can reduce the loan amount, but it also leaves less cash available for other needs.
Eligibility and loan choices
Lenders evaluate credit, income, existing debts, assets and the property. Program rules and lender overlays vary, and a preapproval is not a guarantee of final approval.
Conventional loans can have different terms and fixed or adjustable rates. Ask the lender to explain which programs fit your documented circumstances.
Compare offers on equal terms
Keep the loan amount, property details, occupancy, rate-lock period and pricing date aligned. Compare interest rate, APR, principal and interest, PMI, points, lender fees and credits together.
If one offer has a lower rate but higher upfront costs, estimate how long the monthly savings would take to recover the extra cost.
Official sources
Educational information only. Loan availability, eligibility, pricing, fees, approval, and any rate lock must be confirmed by a licensed mortgage professional.