A pre-qualification is an estimate based on what you tell a lender. A pre-approval is based on documents: your credit report, income and assets are reviewed and you receive a conditional approval letter. Sellers and their agents generally give a pre-approval more weight.

It depends on the program. VA and USDA loans can allow 0% down for eligible borrowers. FHA allows 3.5% with a qualifying credit score, and some conventional programs allow as little as 3% for first-time buyers. Putting 20% down on a conventional loan avoids private mortgage insurance.

Conventional loans commonly look for 620 or higher. FHA guidelines allow 3.5% down at 580 and above. Higher scores usually mean better pricing, so it can be worth a conversation about timing before you apply.

They commonly run between 2% and 5% of the loan amount. You'll receive a Loan Estimate within three business days of applying, and a Closing Disclosure at least three business days before you sign, so you can compare the two.

Most borrowers lock once they have an accepted offer and a closing date. Lock periods come in different lengths, and longer locks can cost more. Your advisor will lay out the options for your timeline.

A pre-approval involves a hard credit inquiry, which can have a small, temporary effect. Credit scoring models typically treat multiple mortgage inquiries within a short shopping window as a single inquiry, so comparing lenders doesn't multiply the impact.

The principal and interest figure uses the standard amortization formula, so it's exact for the inputs you enter. Taxes, insurance and mortgage insurance vary by property and lender, which is why your Loan Estimate is the number to rely on.