Pre-qualification gives a quick, rough estimate of how much you might be able to borrow based on unverified financial info you provide. Pre-approval involves a thorough check of your financial documents (income,credit score, assets) by a lender, giving you a conditional commitment for an exact loan amount and showing sellers you are a serious buyer.

While 20% down helps you avoid paying Private Mortgage Insurance (PMI), many conventional loans require as little as 3% to 5% down. Government-backed options, like FHA loans, require a minimum of 3.5%, while VA and USDA loans may offer 0% down for eligible buyers.

Closing costs are processing and administrative fees required to finalize a property purchase, typically ranging from 2% to 5% of the loan amount. They cover services like appraisal, title insurance, legal fees, and lender charges. Buyers generally pay most closing costs, though sellers can negotiate to contribute toward them through seller concessions.

From the time an offer is accepted to the final closing date, the closing process usually takes 30 to 45 days for buyers securing a mortgage. For sellers, total market time depends on pricing and local conditions, but once under contract, the timeline follows the buyer’s financing or escrow process.

Real estate agents guide clients through buying, selling, or negotiating properties while handling paperwork and compliance. Agent commissions are typically calculated as a percentage of the final sale price (commonly 5%–6%) and are usually split between the buyer’s and seller’s agents upon closing.