Mortgage

One of the biggest misconceptions about buying a home is that you need a 20% down payment. While putting 20% down can help you avoid private mortgage insurance (PMI), many buyers qualify with much less.

The amount you'll need depends on the loan program, your financial situation, and the property you're purchasing. Conventional, FHA, VA, and USDA loans all have different requirements.

Before beginning your home search, it's helpful to meet with a lender who can explain your options and estimate your monthly payment based on different down payment amounts.

Matt's Perspective: Don't assume you're years away from buying because you haven't saved 20%. Many buyers are surprised to learn they qualify much sooner.

There's no single minimum credit score that applies to every loan. Different loan programs and lenders have different requirements, and your credit score is only one part of the approval process.

Lenders also consider your income, employment history, debt-to-income ratio, savings, and overall financial picture.

If your credit needs improvement, a good lender can often recommend simple steps that may strengthen your application before you buy.

Matt's Perspective: Don't disqualify yourself before talking with a lender. I've seen many buyers qualify when they thought they couldn't

Both are helpful, but they aren't the same.

A pre-qualification is an initial estimate based on information you provide. A pre-approval is a more detailed review of your finances, income, credit, and supporting documentation.

In today's market, sellers generally place much more confidence in a pre-approved buyer because it demonstrates you've already completed much of the financing process.

Getting pre-approved also helps you understand your budget before falling in love with a home.

Matt's Perspective: A pre-approval doesn't just strengthen your offer. It gives you confidence while shopping for the right home.

Your monthly payment is more than just the loan amount.

Most mortgage payments include principal, interest, property taxes, homeowners insurance, and, if applicable, private mortgage insurance (PMI) and HOA dues.

Because property taxes vary between Prosper, Frisco, McKinney, Celina, and Little Elm, two homes with identical purchase prices may have different monthly payments.

Understanding your complete housing payment helps you shop within a comfortable budget.

Matt's Perspective: I encourage buyers to focus on the total monthly payment, not just the purchase price.

Private mortgage insurance, or PMI, is typically required when a conventional loan has less than a 20% down payment.

PMI protects the lender, not the borrower, but it allows many buyers to purchase a home sooner without waiting years to save a larger down payment.

The cost varies depending on your loan amount, credit profile, and down payment.

Once you've built enough equity, PMI may be removed under certain circumstances.

Matt's Perspective: PMI isn't something to fear. For many buyers, it's simply a bridge that helps them become homeowners sooner.

A fixed-rate mortgage keeps the same interest rate for the life of the loan, providing predictable monthly payments.

An adjustable-rate mortgage (ARM) usually starts with a lower interest rate for a set period before adjusting based on market conditions.

The right choice depends on how long you expect to own the home, your financial goals, and your comfort with changing payments.

A lender can explain which option best fits your situation.

Matt's Perspective: Most of my clients value the stability of a fixed-rate loan, but every buyer's situation is different.

Yes. Many buyers purchase a new home before selling their current one.

Depending on your finances, you may qualify to carry both homes temporarily, or you may benefit from bridge financing or buy-before-you-sell loan programs.

Your lender will help determine what works best based on your income, equity, and debt.

Planning ahead is important so your financing supports your overall moving strategy.

Matt's Perspective: Buying and selling at the same time doesn't have to be overwhelming. The right plan makes the transition much smoother.

Yes.

Comparing lenders allows you to evaluate interest rates, closing costs, loan programs, customer service, and communication. A slightly lower interest rate doesn't always mean a better overall loan if fees are significantly higher.

Working with an experienced local lender can also make the transaction smoother because they're familiar with the North Texas market and local timelines.

Matt's Perspective: I always encourage buyers to make an informed decision. The best lender is the one who provides the strongest combination of service, communication, and value.

If mortgage rates decline after you purchase your home, refinancing may allow you to lower your interest rate or monthly payment.

Whether refinancing makes sense depends on your new rate, closing costs, how long you plan to stay in the home, and your financial goals.

Buying the right home today doesn't prevent you from taking advantage of lower rates later if the opportunity arises.

Matt's Perspective: You can refinance a mortgage. You can't go back and buy the same home at yesterday's price.

The biggest mistake is making major financial changes after getting pre-approved.

Buying a vehicle, financing furniture, opening new credit cards, changing jobs, or making large unexplained deposits can affect your loan approval.

Once you're under contract, it's best to maintain your financial situation until after closing unless you've discussed changes with your lender.

A little patience during this period can help prevent unnecessary delays.

Matt's Perspective: The financing process usually goes smoothly when buyers avoid major financial decisions between pre-approval and closing.