This is your financial "reputation." A higher score usually unlocks lower interest rates, which can save you tens of thousands of dollars over the life of the loan.
Your monthly check to the bank isn't just paying back the house price. It’s usually a bundle called : Principal: The actual balance of the loan. Interest: What the bank charges you to borrow the money. Taxes: Property taxes collected by your local government. Insurance: Homeowners insurance to protect the asset. 4. Getting Pre-Approved buying a house mortgage
While the "20% down" rule is the gold standard (it helps you avoid private mortgage insurance), many programs allow for as little as 3% or 3.5% down. 2. Choosing Your Loan Type This is your financial "reputation