Knowing where you stand with your credit history is the first step to a pre-approval. The higher your score, typically the more favorable lending terms you will be able to secure. Sometimes the difference of 10-20 points on your FICO score can be the difference of tens of thousands of dollars in interest savings over the life of the loan.
In the past home buyers traditionally had to put down a 20% down payment. This would be equal to 20% of the purchase price of the home. Now it’s could be as little as 05-3.5% down for FHA loans and VA loans.
As a buyer, you also need to keep in mind that closing costs can be a part of the equation. Closing costs vary depending on your individual situation.