Real estate, made refreshingly simple

Pre-approval means a lender has reviewed your income, credit, and assets and agreed — in writing — to lend you up to a specific amount. It's different from pre-qualification, which is just an informal estimate. Sellers take pre-approved buyers much more seriously, and it gives you a firm budget before you start touring homes. We always recommend getting pre-approved before your first showing.

Earnest money is a deposit — typically 1%–2% of the purchase price — that you submit when your offer is accepted. It signals to the seller that you're serious. It's held in escrow and applied toward your down payment at closing. Yes, you can usually get it back if the deal falls through due to a failed inspection, financing falling apart, or other contingencies written into your contract. Losing it typically only happens if you back out without a valid contractual reason.

We strongly recommend it — every time. A licensed inspector examines the roof, foundation, electrical, plumbing, HVAC, and more. Inspections typically cost $300–$500 and can uncover issues worth thousands. Even on new construction, inspections catch things builders miss. If major issues are found, you can negotiate repairs, a price reduction, or walk away entirely — all protected by your contract.

Closing costs are fees paid at the end of the transaction to finalize your purchase. They typically run 2%–5% of the loan amount and include lender fees, title insurance, appraisal, escrow fees, prepaid taxes, and homeowner's insurance. You'll receive a Loan Estimate from your lender early in the process showing a detailed breakdown. Some costs are negotiable, and in some cases sellers will agree to contribute toward them.

PMI stands for Private Mortgage Insurance. Lenders require it when your down payment is less than 20% of the home's value — it protects the lender if you default. It typically adds $50–$200/month to your payment depending on your loan size and credit score. The good news: once your loan balance drops to 80% of the home's original value, you can request cancellation. At 78% it's automatically removed by federal law on conventional loans.

A fixed-rate mortgage locks in your interest rate for the life of the loan — your payment never changes. A 15 or 30-year fixed is the most common choice for buyers who plan to stay long-term. An adjustable-rate mortgage (ARM) starts with a lower fixed rate for a set period (e.g. 5 years), then adjusts periodically based on market rates. ARMs can make sense if you plan to sell or refinance before the adjustment period begins, but they carry more risk if rates rise.