The best type of loan for you depends on several factors, including your credit score, down payment amount, loan amount, and how long you plan to stay in the home. Common options include conventional loans, FHA loans, VA loans, and Non-QM loans for those who don't fit traditional lending criteria. Speaking with a mortgage broker can help you understand which loan product suits your specific financial situation and goals.

To determine how much you can afford, consider your monthly income, existing debts, and the down payment you can make. Lenders typically use the debt-to-income (DTI) ratio to assess your borrowing capacity. A mortgage calculator can provide an estimate, but getting pre-approved by a lender will give you a more accurate figure based on your financial profile.

Your interest rate is influenced by various factors, including your credit score, loan type, loan term, and the current market conditions. Higher credit scores typically qualify for lower interest rates. It's best to shop around and compare offers from multiple lenders to secure the most favorable rate.

The required down payment varies by loan type. Conventional loans often require a minimum of 5-20%, while FHA loans require as little as 3.5%. VA and USDA loans may offer zero-down payment options for eligible borrowers. A larger down payment can lower your monthly payment and potentially avoid private mortgage insurance (PMI).

In addition to the down payment, you should be aware of other costs, including closing costs (which can range from 2-5% of the loan amount), property taxes, homeowners insurance, and potentially private mortgage insurance (PMI) if your down payment is less than 20%. Your lender will provide a Loan Estimate detailing these costs, allowing you to budget accordingly.