Frequently Asked Question
Got questions about buying a home, mortgages, or down payments? You`re not alone. Built to Own is here to help with clear, honest answers to the most common questions first-time homebuyers and experienced buyers ask. Explore these FAQs to make smarter home buying decisions.
How much money do I need for a down payment on a house?
Most buyers aim for a 20% down payment, but many loans allow as little as 3% to 5% down. First-time homebuyer programs may reduce this further. Use our Down Payment Calculator to estimate what you’ll need based on home price and loan type.
How much house can I afford based on my income?
A common rule of thumb is that your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross income. Lenders also look at your debts. Use our Home Affordability Calculator for a personalized estimate.
What credit score do I need to buy a house?
Most lenders require a credit score of at least 620 for conventional loans, but FHA loans may allow scores as low as 580 with a higher down payment. The higher your score, the better the interest rates you may qualify for.
What are closing costs, and how much should I expect to pay?
Closing costs typically range from 2% to 5% of the home`s purchase price. They include fees for appraisals, title insurance, lender fees, and more. Check out our upcoming Closing Costs Calculator to estimate these expenses.
How does mortgage pre-approval work?
Mortgage pre-approval gives you an estimate of what you can borrow based on your income, credit, and debts. It makes you a stronger buyer when making offers. Many lenders offer online pre-approvals within minutes.
Is it better to rent or buy a home?
It depends on your financial goals, local market, and how long you plan to stay. Our Rent vs. Buy Calculator can help you compare costs and decide what`s right for you.
How do interest rates affect my mortgage payment?
Even a small change in mortgage rates can significantly impact your monthly payment. Higher rates mean higher payments and less affordable homes. Try our Mortgage Calculator to see how rates affect your payment.
What is a debt-to-income (DTI) ratio, and why does it matter?
DTI compares your monthly debt payments to your gross income. Lenders use it to determine how much you can safely borrow. A lower DTI makes you more likely to get approved with better rates.
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