Your complete guide to buying a home
From pre-approval to closing — understand every step, every number, and every option available to you.
Pre-Approval Guide
A pre-approval is a written commitment from a lender stating how much they are willing to lend you, based on a review of your credit, income, and assets. It is not a guarantee of final loan approval, but it is the most important first step in the home buying process.
Sellers take pre-approved buyers more seriously. In competitive markets, many listing agents will not show a home without one. Getting pre-approved before you start shopping puts you in the strongest negotiating position.
What you'll need for pre-approval
- Income documentation requested by the lender
- Recent pay documentation, if applicable
- Asset documentation requested by the lender
- Government-issued ID
- Social Security number (for credit pull)
- Employer contact information
Pre-qualification vs Pre-approval
Pre-qualification is a quick estimate based on self-reported information — no credit pull, no document review. Pre-approval is a verified review. Always get pre-approved before making offers.
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See how much you could be approved for.
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Start my mortgage inquiryDown Payment Options
The down payment is the portion of the purchase price you pay upfront. The rest is financed through your loan. Your down payment amount affects your loan program eligibility, interest rate, and whether you'll pay PMI (private mortgage insurance).
| Loan Type | Min. Down Payment | PMI Required? | Notes |
|---|---|---|---|
| Conventional | Varies by program and lender | May apply | Mortgage-insurance and pricing treatment vary by scenario |
| FHA | Varies by program and lender | May apply | Government-program and lender requirements apply |
| VA | Varies by program and lender | Program treatment varies | Eligibility and lender review apply |
| USDA | Varies by program and lender | Program treatment varies | Rural/suburban area eligibility applies |
| Jumbo | Varies by program and lender | Varies | Loan amounts above applicable conforming limits |
Gift funds are allowed
Most loan programs allow down payment funds to come from a family member as a gift. You'll need a gift letter and documentation showing the transfer. Ask your loan advisor about the specific requirements for your program.
FHA vs Conventional — Which Is Right for You?
FHA and Conventional loans are the two most common loan types for home purchases. The right choice depends on your credit score, down payment, and long-term goals.
Turn Times is a licensed mortgage broker, not a lender, and is not affiliated with or endorsed by the VA, FHA, HUD, or any government agency.
FHA Loan
- Credit requirements vary by lender and program
- Down-payment requirements vary by program and lender
- Debt-to-income review varies by file
- Mortgage-insurance requirements vary
- Credit requirements can vary by lender
- Consider the full borrower and property scenario
Conventional Loan
- Credit requirements vary by lender and program
- Down-payment requirements vary by program and lender
- Mortgage-insurance treatment varies
- Program costs vary
- Pricing depends on the complete scenario
- Consider the full borrower and property scenario
Example scenario
FHA and conventional programs can have different eligibility, mortgage-insurance, payment, and cost structures. A licensed loan officer can help compare lender disclosures for the complete borrower and property scenario.
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Find out which loan program fits your scenario.
Tony will walk you through your scenario and show estimated options — no commitment, no credit pull.
Start my mortgage inquiryFirst-Time Buyer Programs
First-time buyer programs may offer down-payment assistance or closing-cost assistance. Eligibility, benefits, and definitions vary by program, location, lender, and the complete application.
Fannie Mae HomeReady
Program requirements, mortgage insurance, and income treatment vary by lender and location.
Freddie Mac Home Possible
Program requirements, income treatment, and mortgage-insurance treatment vary by lender.
FHA 203(b)
Government-insured program with requirements that vary by lender, property, and complete application.
State & Local DPA Programs
Down-payment assistance programs can include grants and second liens. Availability and requirements vary by state, county, program, and lender.
How Much Can I Afford?
Affordability is determined by three factors: your income, your existing monthly debt obligations, and your down payment. Lenders use a metric called DTI (debt-to-income ratio) to measure how much of your gross monthly income goes toward debt payments.
Debt-to-income review
A lender reviews housing expenses, other recurring debts, income, assets, program rules, and the complete file. Debt-to-income thresholds vary by lender and program.
Example
An affordability review considers gross income, housing costs, recurring debt, property costs, assets, and lender requirements. A calculator is illustrative and is not a qualification decision.
Debt-to-income review can differ across conventional, FHA, VA, and other programs. Use our Affordability Calculator for an illustrative starting point, then review lender requirements for your complete file.
Tony AI
Get your estimated options based on your income and debt.
Tony will walk you through your scenario and show estimated options — no commitment, no credit pull.
Start my mortgage inquiry