Purchasing a Home with Confidence

From pre-approval to closing day, most homebuyers complete the process in 30 to 60 days. Pre-approval itself can take just a few days. The longest phase is typically the period between making an offer and closing, which usually runs 30 to 45 days while underwriting, appraisal, and inspections are completed.

Pre-qualification is an informal estimate of how much you might be able to borrow, based on basic information you provide. Pre-approval is a formal review of your finances, credit, and documentation, resulting in a written commitment from a lender. Sellers take pre-approved buyers more seriously, which strengthens your offer in competitive markets.

It depends on the loan program. Conventional loans can require as little as 3% down for first-time buyers. FHA loans require 3.5% down. VA loans require zero down for eligible veterans. You'll also need funds for closing costs, which typically run 2% to 5% of the purchase price, plus reserves for moving and initial home expenses.

You're not legally required to use one, but most buyers do. A buyer's agent helps you find homes, negotiate offers, navigate inspections, and coordinate with the lender and title company. In most cases, the seller pays the buyer's agent commission, so working with one often costs you nothing directly.

Most lenders require recent pay stubs, two years of W-2s or tax returns, two months of bank statements, government-issued ID, and information on existing debts. Self-employed buyers typically need additional documentation like profit and loss statements or business tax returns. NextGen Mortgage provides a checklist tailored to your loan type to keep things organized.

Yes. Getting pre-approved before shopping clarifies your real budget, prevents you from falling for homes you can't afford, and makes your offer stronger when you find the right home. Many sellers and listing agents will not seriously consider an offer without a pre-approval letter attached.