Where this option fits
FHA mortgage insurance and property requirements affect the comparison. The lowest down payment is not always the lowest total cost.
Prepare the borrower and the property together
A preapproval review addresses your finances; the property and final terms still need approval. Discuss occupancy, available cash, payment comfort, insurance, appraisal, and contract deadlines before committing to a financing plan.
What we will review
- Down payment sources
- Income and credit profile
- Property condition and occupancy
- What is the full payment including insurance and taxes?
- What conditions remain after preapproval?
Compare costs over your own timeline
Include applicable upfront and ongoing mortgage insurance, not just the note rate. The duration of insurance depends on the loan terms and applicable rules; do not assume it disappears at 20% equity.
Ask for a written comparison of upfront cash, the full payment, any financed costs, and remaining debt at the same future date. Keep your emergency savings and likely moving plans in the decision.
Questions borrowers ask
Is preapproval a guarantee of closing?
No. Final approval depends on underwriting, property review, required conditions, and acceptable circumstances through closing.
What should I send to get started?
Start with your goal, property location, approximate numbers, and timeline. Use the secure application channel for identity, income, and account records; do not email sensitive documents through an inquiry form.
Further reading & sources
Prepared by Aaron Clowes · NMLS #200900. Editorial sources checked October 27, 2026. Examples are hypothetical; actual costs, terms, eligibility, and program availability vary. This educational guide is not a rate quote or commitment to lend.