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Buying a home comes with a lot of moving parts. Rates, terms, approvals, timelines. It adds up fast.
This page breaks it down. What you need to know, what actually matters, and how each piece affects your loan so you can make smart decisions without getting buried in the details.
Whether you’re buying your first home or looking at your next move, you’ll get a clear view of how home loans work and what to expect along the way.
Start with what you need. Each section breaks down a key part of the home loan process so you know what matters and what to do next.
Most people start by looking at homes. That’s part of it. But getting preapproved early gives you the edge when it’s time to make an offer.
Preapproval tells you what you can afford, but more importantly, it shows sellers you’re serious. In a competitive or multiple-offer situation, that matters. A strong preapproval can make your offer stand out against others that aren’t as solid.
Once you’re preapproved, you know your numbers. That lets you move quickly when you find the right home and make an offer.
If your offer is accepted, you move into escrow. That’s when inspections happen and we finalize your loan. Because you were already preapproved, a lot of the heavy lifting is already done, which helps keep things moving.
At closing, you sign the paperwork, fund the loan, and get the keys.
Fixed, adjustable, rate, term. These get thrown around a lot. Here’s what they actually mean and how they affect your payment, your timeline, and your total cost.
Adjustable-Rate Mortgage (ARM)
Starts with a lower rate for a set period, then adjusts over time. Good if you don’t plan to stay long or want a lower payment upfront.
Debt-to-income ratio (DTI)
Compares your monthly debts to your income. It helps determine what you qualify for.
Down Payment
What you bring upfront toward the purchase. It impacts your loan amount, monthly payment, and whether Private Mortgage Insurance (PMI) is required.
Escrow
The period after your offer is accepted where inspections happen and your loan is finalized before closing.
Equity
The portion of your home you own. It grows as you pay down your loan or as your home value increases.
Fixed-Rate Loan
Your rate stays the same for the life of the loan, so your principal and interest payment stays predictable.
Interest rate vs. APR
The interest rate is what you pay to borrow. APR includes that rate plus fees, giving you a more complete view of the total cost. Even small differences can impact your payment and what you pay over time.
Loan Term
How long you have to repay the loan, typically 15 or 30 years. Shorter terms mean higher payments but less interest overall.
Points
Upfront fees you can pay to lower your interest rate. We’ll help you run the numbers to see if it makes sense for you.
Private Mortgage Insurance (PMI)
If you’re putting down less than 20%, we’ll typically include PMI in your loan. It adds to your monthly payment. Once your equity reaches 20% or more, PMI can usually be removed, and we’ll help you understand when that happens.
Rate lock
Locks in your interest rate for a set period while your loan is being finalized.
Your home equity is the difference between your home’s value and what you still owe. It is a powerful financial tool. With home equity loans and lines of credit, you can borrow against that value, often at lower rates than unsecured options like a credit card.
Because your home secures the loan, you will typically get better terms and more flexibility than you would with higher interest borrowing.
Here are a few examples of what you can use it for:
Once you decide how you want to use your equity, the next step is choosing the right option. A home equity loan or a HELOC.
Home Equity Loan
With a home equity loan, you receive your funds in one lump sum with a fixed rate and set repayment term, often 5, 10, 15 or 20 years. Your monthly payment stays consistent, which makes it a strong option for one-time expenses like a major renovation or large purchase.
Home equity line of credit (HELOC)
A home equity line of credit (HELOC) gives you access to funds over time. You can draw what you need, when you need it, and only pay interest on what you use. Because of that flexibility, payments can vary. A HELOC works well for ongoing expenses like phased home projects or education costs.
Not sure which fits? If you need a set amount, go with a home equity loan. If you need flexibility over time, a HELOC may be the better choice.
Required for your loan
Homeowners insurance
Covers damage to your home from things like fire, theft, and certain disasters, plus liability if someone is injured on your property. You’ll need an active policy before closing.
Title insurance
Protects against issues with ownership, like unknown liens or errors in past records. It ensures the property can legally transfer to you and protects you if a problem shows up later.
May be required
Private mortgage insurance (PMI)
If your down payment is less than 20%, PMI is typically required. It adds to your monthly payment and protects the lender. Once you build enough equity, it can usually be removed.
Flood insurance
Not included in standard homeowners insurance. If your property is in a flood zone, this coverage will be required to protect the home and your belongings.
Optional coverage
Earthquake insurance
Standard homeowners policies do not cover earthquake damage. This coverage can help protect your home in areas where seismic activity is a risk.
Mortgage life insurance
Can help pay off your mortgage if something happens to you. This may be worth considering as part of your broader financial plan, but it is not required.
Before you close on your home, you’ll review a set of documents that outline your loan, your costs, and how everything comes together.
These aren’t just forms. They’re your chance to see exactly what you’re agreeing to before you sign.
What you’ll receive
After you apply, we’ll send disclosures that break down:
You’ll have time to review everything and ask questions before moving forward.
What to pay attention to
Loan terms
Make sure the structure matches what you expect
Rate and APR
Understand both your payment and the total cost
Cash to close
Know what you’ll need to bring at closing
Estimated payment
Confirm it fits your budget
Helpful resources
Consumer Handbook on Adjustable Rate Mortgages
Understand how adjustable rates work and what can change over time
Your Home Loan Toolkit
A step by step guide to the homebuying process, costs, and key decisions
If anything doesn’t make sense, we’ll walk through it with you so you know exactly what you’re signing.
There’s a lot to figure out. We keep it simple so you know what to expect and how to move forward without second-guessing every step.
Home Buying Process
What actually happens from start to finish
Financial Education
What impacts your payment and what to watch for
First Time Home Buyer Program
How to lower upfront costs and get into a home sooner
When you’re ready, we’ll walk you through the next step and help you get started.
Adjust the sale price, interest rate, loan term, and down payment to see how different scenarios affect your mortgage.
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