What your monthly payment is made of
Principal and interest, property taxes, homeowners insurance and (on most low-down programs) mortgage insurance. In wildfire-rated foothill areas, insurance is often the line that moves the most — get a quote early.
How much down payment you actually need
USDA is zero down in most of the foothills. VA is zero down for eligible veterans. FHA is 3.5%. Conventional starts at 3% for first-time buyers. The 20% number is a myth for most buyers.
Closing costs, explained
Lender fees, title and escrow, appraisal, recording, and prepaid taxes and insurance. Sellers can contribute, gifts are allowed, and some costs can be built into the rate. There's almost always a way to reduce cash to close.
The 4 Cs of qualifying
Credit, capacity (income vs. debt), capital (funds to close and reserves) and collateral (the property itself). Different programs are forgiving on different Cs — that's how the right program gets chosen.
Get pre-approved before you shop
A real pre-approval means income and assets have been reviewed, not just a rate quote. In competitive markets, it's the difference between an accepted offer and a lost one.