Down payment requirements depend on the loan program. Conventional loans may require as little as 3% down for eligible buyers, FHA loans require 3.5% down, and VA and USDA loans may allow 0% down for qualified borrowers. Putting 20% down lets you avoid private mortgage insurance (PMI). A John L. Scott broker and a trusted lender can help you compare programs and down-payment assistance options.

Pre-qualification is an informal estimate of what you could be approved to borrow based on information you share. Pre-underwriting is stronger: the lender reviews and verifies key financial information, including income, assets, and credit, and provides a pre-approval letter showing the loan amount you may qualify for, subject to final loan approval. In a competitive market, a pre-approval letter makes your offer far more credible to sellers. John L. Scott recommends getting pre-approved before you start touring homes.

Earnest money is a good-faith deposit that shows a seller you are serious about your offer. It typically runs about 1–5% of the purchase price, though the amount is negotiable and can be higher in competitive markets. The funds are held in escrow and applied toward your down payment or closing costs at closing. Your broker explains how to protect your deposit through contract contingencies.

Common contingencies protect you if something goes wrong: an inspection contingency lets you negotiate or walk away based on the home's condition, a financing contingency protects you if your loan falls through, an appraisal contingency addresses a low appraisal, and a title contingency ensures clear ownership. Some buyers also use a sale-of-home contingency. In competitive markets, buyers sometimes waive contingencies to strengthen an offer — a John L. Scott broker helps you weigh the risks.

A licensed inspector examines the home's major systems — roof, foundation, electrical, plumbing, heating, and cooling — and provides a written report, usually within the inspection period (often around 10 days). Based on the findings, you can request repairs, negotiate a price reduction or credit, or, if your offer includes an inspection contingency, withdraw. Your John L. Scott broker helps you interpret the report and decide on next steps.

Buyer closing costs typically run about 2–5% of the purchase price and may include loan origination fees, appraisal, title insurance, escrow fees, and prepaid items like property taxes and homeowners insurance. Your lender provides a Loan Estimate early on and a Closing Disclosure before closing so you know the exact figures. A John L. Scott broker reviews these with you and looks for items that may be negotiable.

Requirements vary by loan program and lender. Conventional loans often start around a 620 credit score, while FHA loans may be available with lower credit scores depending on the loan scenario and lender requirements. Higher credit scores generally qualify for more favorable interest rates and loan terms, with roughly 740 and above typically earning the best rates. If your score needs work, a lender can outline steps to improve it. This is general information; talk to a licensed lender about your situation. Loan program guidelines, interest rates, fees, and approval requirements are subject to change. Not all borrowers will qualify. Contact a licensed mortgage professional for current program details and personalized guidance.