Quick Answer
A lender must send a Loan Estimate within three business days of your application. Read it line by line. Once you choose a loan, you can lock your rate. At least three business days before closing, you'll get a Closing Disclosure with the final terms. Low down payment options include FHA, VA and some conventional programs.
What are the steps to getting a mortgage?
The CFPB breaks buying into four steps: prepare to shop, explore loan choices, choose a loan offer and get ready to close. The first two happen before you make an offer on a home. When a lender sends you a Loan Estimate, read it line by line and ask about anything that isn't clear.
What is a Loan Estimate?
A standard form that shows the loan's estimated rate, monthly payment and closing costs. A lender must send it within three business days of receiving your application. It isn't an approval: when you get one, the lender hasn't yet approved or denied your loan.
When should you lock your rate?
A rate lock means your rate won't change between the offer and closing, as long as you close in time and nothing changes in your application. Locks typically last 30, 45 or 60 days, so lock when you're confident you can close within that window.
What happens before closing?
At least three business days before you close, the lender must give you a Closing Disclosure with your final loan terms and costs. Compare it with your Loan Estimate and ask about anything that changed.
What if you don't have 20 percent down?
FHA loans allow 3.5 percent down with a qualifying credit score. Many VA loans need no down payment. Freddie Mac's Home Possible program allows a 3 percent down payment for borrowers within its income limits. Many states and local organizations also offer help with a down payment or closing costs.
Common Questions
Who counts as a first-time homebuyer?
For FHA purposes, HUD counts someone who hasn't owned another property in the three years before the loan's case number is assigned. Other programs use their own definitions, so check each one.
How long does a rate lock last?
The CFPB says rate locks are typically available for 30, 45 or 60 days. The rate holds only if you close in that time and nothing changes in your application.
Sources
This guide is general information, not advice about your situation.