The due diligence period is when a prospective buyer can inspect the property and perform any additional inspections such as septic tank inspection, pool inspection, etc. The due diligence period is usually 7-10 days but can vary.  

For homeowners that put less than 20% down, PMI is an added insurance policy that protects the lender if you are unable to pay your mortgage. This is not the same as homeowners insurance. It is a monthly fee rolled into your mortgage payment that is required when you put less than 20% down. While PMI is an initial added cost, it enables you to buy now and begin building equity. Otherwise, you’d be waiting 5-10 years to build enough savings for a 20% down payment. 

Your monthly mortgage payment includes the principal, interest of the loan, property tax, and homeowner’s insurance. 

Earnest money is a good-faith deposit that buyers put down to show the seller they are serious about buying. The money is deposited after the seller has accepted the offer and is usually kept in an escrow account. On closing day, the buyer can apply the earnest money toward the purchase of the home. The amount of earnest money can vary from different markets, but your realtor can advise you on how much to offer.  

No. The terms pre-qualification and pre-approval are not interchangeable. A pre-qualification is a mortgage approval based on self-reported information and is simply an estimate. It doesn’t verify a buyer’s credit score, income, or money in the bank. A pre-approval is mortgage approval based on data compiled from credit reports, job data, and bank information. This will confirm how to approve your loan and for how much money. If you are ready to begin the homebuying process, then I recommend getting a pre-approval letter from a local lender. These are good for up to 90 days.