Making sense of home loans

By collaborating with a trusted lender and remaining informed through every step of the process, from pre-approval to closing, you can have a significantly more comfortable experience. You'll want to consult with a mortgage specialist (or two) to find a professional who you are confident will provide you with the best care. To get an idea of what to expect, review the following home loan process steps.

Before you start looking for a home to buy, it's wise and proactive to meet with a lender to get pre-approved for a loan amount. Offers accompanied by a pre-approval letter are stronger and will stand out, especially when the seller is receiving multiple offers. To gain pre-approval, your preferred lender will gather information about income, assets, and debts to help determine how much you can borrow. This includes gathering a credit report, W-2 forms, pay stubs, federal tax returns, and recent bank statements. There are a variety of home loan programs offering different advantages depending on your unique needs and preferences.

Your lender will walk you through the details, but it helps to know the basics before that first conversation.

• Conventional loans — down payments as low as 3%, best suited for buyers with solid credit (680+) and stable income. No upfront mortgage insurance premium, and PMI drops off once you build enough equity.
• FHA loans — down payments as low as 3.5%, more flexible credit and debt-to-income requirements, and gift funds are allowed toward your down payment. A popular choice for first-time buyers.
• VA loans — no down payment required for eligible veterans, active-duty military, and surviving spouses, with no monthly mortgage insurance and limited closing costs.
• USDA loans — zero-down financing for eligible rural and some suburban properties outside the Bryan-College Station city core; income limits apply.

Every buyer's situation is different — the right program depends on your credit, savings, and goals. Loop in a trusted local lender early so you know exactly what you qualify for before you start touring homes.

Texas has no state income tax, so your monthly budget mainly needs to account for property taxes and insurance. Combined property tax rates in Brazos County typically run about 2.0–2.5% of your home's value, and homeowners get a standard homestead exemption — with an additional exemption and a school-tax ceiling if you're 65+. Closing costs for buyers generally run 2–5% of the purchase price, covering lender fees, title and escrow charges, and prepaid taxes and insurance. Down payment requirements vary by loan program — conventional loans can start around 3–5% down, FHA around 3.5%, and VA loans as little as 0% for eligible buyers.

Use the calculator below to see how price, down payment, rate, and term affect your estimated monthly payment — including principal, interest, taxes, and insurance.

Collaborating with a top-notch local loan officer will ensure you have access to competitive rates and programs that best fit your individual needs.

When you find the perfect property and your offer is accepted, your lender will help you complete a full mortgage loan application, discuss down payment options, and explain any related fees. Then, your application is submitted for processing where the documents are reviewed. Your lender will also order a home appraisal and a property title search. The next part of the application process involves sending everything to an underwriter who will review and approve the entire loan package to make sure it meets all compliance regulations. It is not unusual to receive requests for additional documentation or clarification during this phase.

Once your loan is approved, you'll need to set up homeowners insurance. Your documents will be sent to the title company and the closing will be scheduled for you to sign the necessary paperwork and pay any additional costs to complete the purchase of your new home. After the loan goes through the required recording process, the purchase is complete, and you officially own your new home!