Prequalification gives a quick, informal estimate of what you may be able to borrow based on self-reported information and a soft credit check. Preapproval goes a step further it verifies your finances with full documentation like W-2s and bank statements, includes a hard credit pull, and provides a specific loan amount. This makes your offer stronger and shows sellers you’re a serious buyer.

Prequalification helps set a budget, whereas preapproval is a firm commitment for a specific amount, essential before making an offer on a home.

The amount you need for closing cost can vary anywhere from 2%-5% includes lender fees, appraisal fees, title search and insurance fees, and recording fees.

From my experience, about 3 months. From getting pre approved to searching, then going into contract will take 21-25 days to close on the property. 

You can absolutely buy a home if you are self-employed or have irregular income, lenders evaluate consistent cash flow rather than just a W-2 paycheck. While requiring two years of tax returns, and/or bank statements, and profit/loss statements, you can qualify for conventional, FHA, or specialized "bank statement" loans.

The same rules apply whether you work for yourself or someone else. Before giving anyone a mortgage, a lender will want proof of stable, consistent, and on-going income.

A way to remember: PITI Principal (This is the money you borrowed and have to pay back), Interest (cost of borrowing), Property Taxes and Homeowners Insurance (They are usually bundled with your monthly payment and managed by the lender through an escrow account), and some neighborhoods you may pay for condominium or homeowner’s association dues. These costs are usually paid separately from your monthly payment.

A 2-1 buydown is a temporary mortgage rate reduction where the interest rate starts 2% below the locked note rate for the first year, then drops 1% below the note rate for the second year, returning to the full note rate in year three and beyond. 

EX: Year 1- 4% Year 2- 5% Year 3-30 6%