Six things to know before you borrow.

1. 01

   Loan types 101

   Conventional from 3% down · FHA 3.5% down with flexible credit · VA $0 down for eligible military · USDA $0 down in eligible rural areas. Ask lenders which you qualify for.

2. 02

   Fixed vs. adjustable

   A fixed rate never changes: predictable for as long as you keep the loan. An ARM starts lower but can rise after the intro period. If you consider one, know exactly how high the payment could go.

3. 03

   Rate vs. APR

   The interest rate is the cost of borrowing; APR adds most fees, so it reflects the true annual cost. When comparing lenders, line up APRs. A low rate with high fees can cost more overall.

4. 04

   PMI, explained

   Put less than 20% down on a conventional loan and you’ll pay private mortgage insurance. You can request removal at 20% equity, and it must drop off at 22%. It’s a cost, not a reason to wait years to buy.

5. 05

   Points & credits

   Discount points = pay more upfront for a lower rate. Lender credits = the reverse. Do the break-even math: upfront cost ÷ monthly savings = months to recoup. Moving sooner than that? Skip the points.

6. 06

   Shop your rate

   Get official Loan Estimates from 3+ lenders within a two-week window; credit scoring treats them as one inquiry. The standardized form makes offers easy to compare line by line, and shopping routinely saves thousands.

Educational content adapted from the Consumer Financial Protection Bureau’s Buying a House resources and National Association of REALTORS® consumer guidance, reviewed July 2026. This is general information for every U.S. state, not financial, legal, or tax advice. Free, HUD-approved housing counselors are available at consumerfinance.gov .

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