Answers to the questions Texas buyers ask most — about getting a home loan in general, and about this specific loan program. Still have a question? Use the free eligibility check at the top and we'll walk you through it.
Getting Started
How much of a down payment do I really need?
It depends on the loan. VA and Texas Vet loans can be $0 down for eligible veterans. Conventional loans often need 3–20%. Bank statement (non-QM) loans for the self-employed usually start around 10%. The right answer depends on your situation — that's something we can pin down for you quickly.
What credit score do I need to buy a home?
Many programs start around a 620 score, and some go lower. A higher score generally means a better rate. If your credit isn't perfect, don't count yourself out — there are loan types built for exactly that, and a good loan officer can map a path.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on what you tell us. Pre-approval is stronger — we verify your information and issue a letter that shows sellers you're a serious, ready buyer. In a competitive market, a pre-approval can be the difference between winning a home and losing it.
How much house can I afford?
A common rule is that your total monthly debts stay under about 43–50% of your income, but the real number depends on your debts, down payment, and rate. Use the affordability calculator on this site for a quick estimate, then we'll confirm the exact figure.
Should I get pre-approved before I start looking at homes?
Yes. Getting pre-approved first tells you your real budget, makes your offers stronger, and speeds up closing once you find the right home. It only takes a short conversation to get started.
The Loan Process
What documents will I need to apply?
Typically ID, proof of income (pay stubs and W-2s, or bank statements if you're self-employed), recent bank/asset statements, and details on any other debts. We give you a clear checklist up front so there are no surprises.
How long does it take to close on a home loan?
Most loans close in about 30–45 days from a signed contract. Being responsive with documents and getting pre-approved early are the two biggest things that keep it on schedule.
What actually happens at closing?
At closing you sign the final loan and ownership documents, pay any remaining closing costs and down payment, and get the keys. We walk you through every number beforehand so closing day is smooth.
What is an appraisal and why does it matter?
An appraisal is an independent estimate of the home's value. The lender uses it to confirm the home is worth what you're paying. If it comes in low, there are options — we'll help you navigate them.
What is escrow?
Escrow is a neutral account that holds funds during the transaction, and later often holds money for your property taxes and insurance so they're paid automatically as part of your monthly payment.
What is underwriting?
Underwriting is the lender's review of your full application — income, credit, assets, and the property — to confirm the loan meets guidelines. A well-prepared file moves through underwriting faster.
Rates, Costs & Insurance
How are mortgage interest rates determined?
Rates move with the broader bond market plus your personal profile — credit, down payment, loan type, and loan amount all factor in. Two people can get different rates on the same day, which is why a custom quote matters.
What are closing costs and how much should I expect?
Closing costs cover things like the appraisal, title, lender fees, and prepaid taxes/insurance — often roughly 2–5% of the loan. Some can be negotiated or covered by the seller; we'll show you the full breakdown.
What is PMI and how do I avoid it?
Private mortgage insurance is an extra monthly cost on many low-down-payment conventional loans. VA and Texas Vet loans don't have monthly PMI at all, which can save hundreds a month — one of their biggest advantages.
Fixed-rate vs. adjustable-rate — which is better?
A fixed rate stays the same for the life of the loan (predictable). An adjustable rate can start lower but change later. Most buyers planning to stay a while prefer fixed; we'll help you weigh it for your plans.
Are property taxes high in Texas?
Texas has no state income tax but relatively higher property taxes (often around 1.6–1.9% of value, varying by county). These are usually escrowed into your monthly payment, and our calculators factor them in.
Texas Vet & VA Loan Questions
What's the difference between a Texas Vet loan and a VA loan?
The Texas Vet (VLB) loan is a state program with below-market, weekly-set rates for Texas veterans. The VA loan is a federal benefit offering $0 down and no PMI. They're separate — and many Texas veterans combine both for the best of each.
How do I get my Certificate of Eligibility (COE)?
The COE proves your VA loan entitlement. We can help you request it — often it's pulled quickly online, and having it ready up front speeds up your approval.
Do disabled veterans get extra benefits?
Yes. A 30%+ service-connected disability rating qualifies you for an additional discounted Texas Vet rate, and disabled veterans are typically exempt from the VA funding fee — real savings up front and monthly.
Can I use my VA benefit more than once?
Yes — the VA home loan benefit can be reused. As you pay down or sell, your entitlement can be restored for your next home.
Will sellers accept an offer with a VA loan?
Yes. The old reputation for slow VA closings is outdated — VA loans close on a similar timeline to other loans and at a high success rate. A strong pre-approval makes your offer competitive.
Can I use a Texas Vet loan to refinance?
The Texas Vet (VLB) loan is for purchases only. To refinance, you'd use your federal VA loan benefit, which does allow it.