The difference that wins offers
Prequalified versus pre-approved
Most people think a prequalification means they are ready to make an offer. It does not, and sellers know the difference.
Prequalified
A wishful guess
A rough estimate based on what you told the lender. Nothing has been verified yet, so in a competitive market sellers often move on to the next buyer.
Pre-approved
Offer-ready
A file that has been reviewed with verified income, assets and credit. This is the standard that wins offers and gets people to the closing table. Lenders reward preparation, so prepare.
A pre-approval is issued by a licensed lender and is always subject to final underwriting. Village Premier does not issue pre-approvals.
Your true monthly payment
It is more than principal and interest
Most buyers budget for principal and interest, then get surprised at closing. Your real payment is called PITIA, and every piece matters.
Principal
Pays down your loan balance and builds equity over time.
Interest
The cost of borrowing. The interest share shrinks as your balance drops.
Taxes
Property taxes, usually collected monthly. They vary by location and can change each year.
Insurance
Homeowners insurance is required. Mortgage insurance is often added with less than 20% down.
Association
HOA dues for condos and planned communities. Lenders count them in your debt ratio.
The escrow choice
Most buyers let the lender collect taxes and insurance monthly. Opting out has stricter rules, so know the trade-offs.
See your full PITIA payment with your own numbers.
Monthly payment calculatorPick your path
Which best describes you?
Everyone walks in from a different door. Pick yours.
I'm buying my first home
The steps, the mistakes to avoid, down payment help and how credit really works.
First-time buyer guideI'm investing in real estate
DSCR, BRRRR, 1031 exchanges and the loan menu investors use.
Investor guideI'm selling, and maybe buying next
Bridge strategies, the new commission rules and timing two moves at once.
Seller guideI own a home
Refinancing, cash-out, HELOCs and making your equity work for you.
Homeowner guideHomebuying myths
The noise, and what is actually true
"I should wait for rates to drop."
Waiting has a cost too. If prices rise while you wait, a higher purchase price can outweigh a small rate drop. A rate can be refinanced later. A purchase price cannot. Run both scenarios in the calculators before you decide.
"I need 20% down to buy."
That has not been true for decades. FHA guidelines allow as little as 3.5% down, some conventional programs 3%, and VA and USDA programs can allow zero down for those who qualify. Down payment assistance programs can help with the rest.
"I need perfect credit."
Your score is a headline, and underwriters read the whole story. FHA guidelines can allow scores as low as 580, manual underwriting exists for complex files, and medical collections are treated differently than they used to be.
"Renting is cheaper than buying."
Sometimes it is, month to month. Over time, rent builds someone else's equity while a mortgage builds yours. The Rent vs. Buy calculator shows the difference with your own numbers.
"I'm self-employed, so I can't qualify."
Being your own boss does not lock you out. Bank statement programs can use 12 or 24 months of deposits instead of tax returns, and 1099 and multiple income sources can often be combined.
"The market is going to crash."
Nobody can promise what the market will do. What you can control is buying a home you can afford through ups and downs, with a payment that fits your life. That is what the calculators are for.
Self-employed?
Being your own boss does not lock you out.
Lenders commonly look at self-employed income in one of two ways: a two-year average of your tax returns after write-offs, or 12 to 24 months of bank deposits with an expense factor. Knowing which one tells a better story about you changes everything.
Self-employed income calculatorHow lenders commonly read your income
- W-2: usually two years of steady history
- 1099 and self-employed: two-year average of net income after write-offs
- S-corp owners: some items like depreciation may be added back
- Side income: usually needs two years on your tax returns
- Bank statement programs: deposits over 12 or 24 months, less an expense factor
Come home.
There is a seat at the table for you. Join the Village and we will send you the next gathering, the newest classes, and a note from me when something good is happening.