Choose the financing conversation
US conventional, FHA, VA and USDA financing have different eligibility, insurance and cost structures. Some options permit smaller down payments; a program label is not proof that you qualify. First compare the occupancy, property type and loan-size rules with the home you actually want. Ask each lender which program the quote assumes.
Read a preapproval as a conditional step
A preapproval letter can help you understand a lender’s assumptions, but it is not a guaranteed loan offer. Find out whether income, assets and credit have been verified, when the letter expires and whether underwriting has reviewed it. Appraisal, title, insurance and final financial checks can still affect closing.
Budget beyond principal and interest
US ownership costs can include property taxes, homeowners insurance, mortgage insurance, HOA dues and utilities. Escrow deposits and prepaid interest can make cash to close differ from a simple down-payment-plus-fees estimate. Request comparable Loan Estimates and compare the same loan amount, rate-lock status and closing date.
A question worth asking
Is a preapproval letter a final commitment?
No. It is based on assumptions and outstanding conditions. Confirm the lender’s actual underwriting and property requirements.
Check the source
Primary references checked October 28, 2026. Rules and product availability can change; confirm the requirements for your actual transaction.