Pre-qualification gives an informal estimate based on self-reported data. Pre-approval is a formal evaluation where an underwriter verifies income, credit, and assets to issue an official commitment letter.

Requirements depend on the program. Conventional loans start at 3% down, FHA requires 3.5%, while eligible VA and USDA loan borrowers can access 0% down payment options.

Most mortgage loans close within 21 to 45 days after application submission, depending on appraisal timelines, document verification, and underwriting schedules.

Fixed-rate loans lock in interest rates for predictable long-term payments. Adjustable-rate mortgages (ARMs) offer lower initial rates for a set period, suitable if you plan to move or refinance early.

Closing costs cover lender, title, and third-party fees (usually 2% to 5% of the loan amount). Buyers typically pay them, though seller concessions can offset costs depending on negotiations.