The Home Loan Process. Explained Simply.

Hi. I’m Daisy. I’m a real estate broker, not a lender. But buyers ask me two questions all the time: “How much do I need down?” and “What would my payment be?” So let me walk you through the PROCESS, so you know where those answers actually come from. Watch this short video here or read on:

The first step: Talk to a lender BEFORE you shop for a home.

Not after. Not once you fall in love with a house. This is where you get pre-approved, not just pre-qualified. Pre-approval means the lender has reviewed your income, credit, debts, and assets. It’s how we know your real price range is real.

2. Down payment conversations happen with the lender.

Some loans allow as low as 3 percent down. Some require more. The USDA and VA loans allow zero down. It all depends on credit, loan type, occupancy, and sometimes the property itself. If someone gives you a blanket answer online, they’re guessing at best.

3. Monthly payments aren’t just the loan amount.

They usually include principal, interest, PROPERTY TAXES, HOMEOWNERS INSURANCE, and sometimes HOA dues. That’s why two buyers can buy the same-priced home and have very different payments.

4. Once you’re under contract, the lender takes over.

They order the appraisal, verify everything again, and lock in your interest rate. This is the part people underestimate. Underwriting is VERY detailed, and some timelines are federally mandated. A real estate agent’s role during all of this is different. We help you find a home in the price range YOU are comfortable with, which may be well below your maximum approval amount! An agent works alongside your lender, we protect your contract deadlines, and help you avoid surprises that could cost you the house or your earnest money. But we don’t get involve with your finances unless the agent is also a licensed lender.

So if you’re thinking about buying and feel stuck on numbers, the right move isn’t guessing. It’s starting the conversation EARLY, with the right professional, in the right order.

If you want, I’m happy to explain how the REAL ESTATE side works and help you get connected to a solid lender. That way, you’re making decisions with facts, not stress. REMEMBER, you can shop around for the best lender that gives you the best rate and terms! Contact us today.