Stick with a budget that includes an interest rate & monthly payments that works for buyers.

The credits score will impact their interest rate, monthly payments, & mortgage loan options.

It’s best to estimate how much buyers are able to contribute to a down payment on their new home.

The DTI (Debt-to-income) ratio is an indicator of what mortgage loan buyers can afford.

Specifics like number of years & interest rates will impact a buyers mortgage payments.

These are traditional mortgage loans used to finance the acquisition of a finished home or property. The funds are typically provided as a lump sum at closing, and the property serves as collateral. The term "purchase loan" is sometimes also used for seller financing, an alternative for buyers who cannot qualify for conventional loans.

This process involves replacing an existing loan with a new one to secure more favorable terms, such as a lower interest rate, a different loan term, or to change the loan type (e.g., from an adjustable-rate to a fixed-rate mortgage). A cash-out refinance also allows a homeowner to borrow against their home equity and receive the difference in cash.

Often called a second mortgage, a home equity loan allows a homeowner to borrow money against the equity built in their home. The borrower receives a single lump sum of money upfront and repays it with fixed monthly payments over a set term. The home serves as collateral, meaning a default could lead to foreclosure.

These are short-term loans that provide funds to cover the costs of building a new home or undertaking major renovations. The money is disbursed in stages, or "draws," as construction progresses and work is verified by inspections. Once the project is complete, the loan is typically paid off with a separate, long-term mortgage or automatically converts into one (a construction-to-permanent loan).

These loans are specifically designed for individuals or entities purchasing property as an investment rather than a primary residence. Requirements and terms can differ from standard residential mortgages, often involving higher down payments and interest rates, as the property is used to generate income or for resale (e.g., flip projects).

Available to homeowners aged 62 and older, a reverse mortgage allows them to convert a portion of their home's equity into cash. The lender makes payments to the homeowner, and the loan does not have to be repaid until the home is sold, the owner permanently moves out, or passes away.