Mortgage questions, answered clearly.

Yes. Talking to a lender early helps you understand your budget, possible monthly payment, cash needed to close, and loan options before you start making offers. It can also help you spot credit, document, or down payment issues before they slow you down.

Conventional loans follow Fannie Mae and Freddie Mac guidelines and are not insured by the federal government. FHA loans are insured by the Federal Housing Administration and may allow lower credit scores or smaller down payments. The tradeoff is mortgage insurance, which works differently on FHA loans than it does on conventional loans.

The required down payment depends on the loan program. Some conventional loans allow as little as 3 percent down for eligible buyers. FHA may allow 3.5 percent down with a qualifying credit score, while VA and USDA loans may allow zero down for eligible borrowers.

After you submit a mortgage application, your loan officer reviews your information, collects documents, and prepares the file for underwriting. The lender may verify income, assets, credit, employment, and property details. After review, the file may be approved, conditionally approved, or declined.

Cash to close usually includes your down payment, closing costs, and prepaid items such as homeowners insurance, prepaid interest, and tax escrow deposits. The amount depends on your loan program, purchase price, location, and any seller credits. Your Loan Estimate will show the projected amount.

Refinancing may make sense when it lowers your payment, shortens your loan term, helps remove mortgage insurance, or gives you access to home equity. The main question is whether the benefit is worth the cost. Your loan officer can help you compare the new loan against your current loan and estimate the break-even point.

Your first payment is due on the first of the month following a full calendar month after closing. If you close in March your first payment is due May 1. Your closing documents will confirm the exact date.