Home financing guide: loans, credit and closing costs

Paying for a home comes down to four things: your budget, your loan, your credit and your cash to close. This guide takes each one in plain English and links to the tools to run your own numbers.

Get pre-approved Mortgage calculator Affordability calculator Down payment help Loan programs Refinance

Start here

Paying for a home in five steps

Do these in order. Each one makes the next one easier.

Set a real budget. Start from the monthly payment you are comfortable with, not the biggest loan you can get. How to budget.
Check your credit. A higher score can mean a lower rate. How to raise it.
Pick a loan type. FHA, conventional, VA and USDA loans each fit a different buyer. FHA vs. conventional.
Get pre-approved. A lender checks your income, debts and credit and tells you what you can borrow. Start here.
Plan your cash to close. Down payment plus closing costs. What closing costs include.

The big questions

What buyers ask about money most

How much do I need to put down?

Many buyers put down far less than they think. Some loans need very little, and down payment help can cover part of it. A loan officer can tell you what fits your case.

What moves my rate?

The market sets the starting point. Your credit score, loan type and down payment move your rate up or down from there. What moves mortgage rates.

What will I pay at closing?

Closing costs cover the lender, title, taxes and insurance set-up. You get a Loan Estimate early and a Closing Disclosure at least three business days before you sign.

Should I refinance later?

Maybe, if rates drop enough to cover the cost of the new loan. Buy a home you can afford today. A refinance is a bonus, not a plan. Refinance basics.

More reading: home buying guide · first-time buyer checklist · all articles

NEXA Mortgage, LLC (NMLS #1660690) is the lender; AXEN Realty does not make loans. AXEN Realty and NEXA Mortgage are affiliated companies. You are never required to use NEXA Mortgage or any AXEN-affiliated lender. Compare lenders, and ask your agent for the written Affiliated Business Arrangement Disclosure before you choose. Rates, programs and approval depend on your credit, income, property and lender guidelines. Equal Housing Lender.

Straight answers

Home financing questions

How do I know how much house I can afford?

Start with the monthly payment you are comfortable with, including taxes, insurance and any HOA dues. An affordability calculator gives you a range, and a lender pre-approval gives you the real number.

What is the difference between pre-qualified and pre-approved?

Pre-qualified is a quick estimate based on what you tell a lender. Pre-approved means the lender checked your income, debts and credit, so sellers take your offer more seriously.

Do I need perfect credit to buy a home?

No. Different loans accept different credit scores. A higher score can get you a lower rate, so it can pay to raise it before you apply.

Can I get help with my down payment?

Often, yes. Many states, cities and nonprofits offer grants or low-cost second loans to help with the down payment or closing costs. Rules and income limits vary by program.

Do I have to use AXEN's lender?

No. You can use any lender you want. Compare Loan Estimates from more than one lender on the same day to find the best deal.

Understanding Closing Costs: What Buyers Pay

Closing costs surprise a lot of first-time buyers. The CFPB puts a buyer's closing costs at about 2% to 5% of the price, on top of your down payment. On a $300,000 home, that is about $6,000 to $15,000. Sellers pay their own separate costs. Plan for yours from day one. What is in closing costs? Lend
Down Payment Assistance Programs: How They Work

Not having enough cash saved is the number one thing that stops people from buying. Down payment assistance can close that gap. Most people who qualify never even ask. Here is how it works. Where the money comes from Most help comes from state housing finance agencies, plus some cities, counties and
How to Improve Your Credit Score for a Better Mortgage Rate

Your credit score is one of the biggest things that sets your mortgage rate. A better rate can mean a lower payment every month for years. The good news: you can often move your score in a few months if you start now. Quick wins (1 to 2 months) Check your reports for free. Go to AnnualCreditReport.c
FHA vs. Conventional Loans: Which Is Right for You?

FHA and conventional are the two most common home loans. Pick the wrong one and you can pay more every month for years. Here is the simple way to tell them apart. FHA loans in plain words Backed by the government. The Federal Housing Administration insures the loan, so lenders can take on buyers wit
What Moves Mortgage Rates, and the Parts You Control

Everyone wants to know where mortgage rates are going. Here is the truth: nobody knows for sure. Forecasts miss all the time. What you can control is the rate you personally get. That part is worth your time. What moves rates for everyone The bond market. Mortgage rates tend to follow long-term bond

Connect with a local NEXA Mortgage loan officer

Connect with a local NEXA mortgage loan officer who knows your market inside and out. Get expert guidance, personalized service, and the strategies you need to reach your real estate goals.

NEXA Mortgage, LLC

5559 S Sossaman Rd, Bldg 1 Ste 101 Mesa, AZ 85212

602-344-9333

Submit concerns or questions
through our contact form.

An Equal Housing Lender
NMLS ID#: 1660690
www.nmlsconsumeraccess.org

Axen Realty is committed to ensuring digital accessibility for individuals with disabilities. We are continuously working to improve our site experience and welcome feedback. If you wish to report an issue or request an accommodation, please contact us