Buyer guide
Financing a home, in plain English
Six things that actually matter, none of which require you to learn lender jargon. Every section links the calculator that does the math for you.
1. Get pre-approved before you fall in love with a house
Pre-approval is a lender's written estimate of what they'd loan you, based on your verified income, debts, and credit. It costs nothing, usually takes a day or two, and in a competitive market your offer is barely considered without one. Pre-QUALIFICATION (the 5-minute online version) is weaker — it's self-reported and sellers know it. Ask for pre-approval specifically.
Estimate what you can afford →2. Loan types in one paragraph each
CONVENTIONAL is the default — best rates if your credit is solid, and the minimum down payment can be as low as 3%. FHA allows lower credit scores and 3.5% down, but its mortgage insurance is harder to remove. VA (if you've served) is frequently the best deal available — zero down, no monthly mortgage insurance. JUMBO kicks in above the conforming limit (most Greater Seattle homes that look expensive ARE above it) and underwriting gets stricter. Thirty-year terms cost more in total interest but keep payments manageable; fifteen-year terms flip that.
Compare payments by term and rate →3. The 20%-down myth
You do not need 20% down to buy a home — the median first-time buyer puts down far less. What 20% buys you is no PMI (private mortgage insurance, typically 0.3–1% of the loan per year until you reach 20% equity). Putting less down and paying PMI is often the RIGHT call when waiting years to save would cost you more in rent and price growth. Run both versions of the math before deciding.
See the PMI line item directly →4. Washington has real help for first-time buyers
The Washington State Housing Finance Commission (WSHFC) runs down-payment assistance programs — Home Advantage and House Key — that pair a primary mortgage with a low- or zero-interest second loan covering part of your down payment. Income limits apply but they're higher than most people assume. Lenders have to be WSHFC-approved to offer these, so ask directly: "do you originate WSHFC Home Advantage loans?"
5. Shop the rate. Really.
Rates for the SAME borrower on the SAME day routinely differ by a quarter point or more between lenders. On a typical King County loan that's tens of thousands of dollars over the life of the mortgage. Get at least three Loan Estimates (a standardized form every lender must give you) within a two-week window — credit bureaus count clustered mortgage inquiries as ONE pull, so shopping doesn't hurt your score.
See what a quarter point is worth →6. Budget for closing costs — and know WA quirks
Plan for roughly 2–3% of the purchase price on top of your down payment: lender fees, title and escrow, prepaid taxes and insurance. In Washington the SELLER customarily pays the real estate excise tax (REET), and there's no state income tax deduction angle to chase. Your Loan Estimate itemizes all of it up front — read page 2.
Estimate your closing costs →Where Manaky fits
We're a marketplace for comparing real-estate agents by their published fees — we are not a lender, not a broker, and we take no referral fees from anyone. This guide exists because financing questions are where buyers get stuck, and an informed buyer makes the whole market work better. For decisions about your own situation, talk to a licensed loan officer or a fee-only financial adviser.