1. What is the minimum down payment for a house?

The minimum down payment depends on the type of mortgage you choose. Rave Financial generally allows a minimum of 5% of the home purchase price as a down payment for most home loans. Your lender can help you determine which options you qualify for and what down payment makes sense for you.

2. What is PMI?

PMI (Private Mortgage Insurance) is insurance that protects the lender if a borrower stops making their mortgage payments. It is typically required on conventional mortgages when you put down less than 20% of the home's purchase price. PMI can increase your monthly mortgage payment, but it also allows you to purchase a home without saving a full 20% down payment. Rave Financial does not require PMI on most mortgage loans, subject to credit approval.

3. How much are closing costs when buying a home in Texas?

In Texas, closing costs typically range from about 2% to 5% of the home purchase price, although the actual amount varies depending on the loan, property, seller credit, lender, and other factors. Closing costs can include expenses such as appraisal fees, survey fees, title services, loan origination fees, prepaid taxes and insurance, and other costs. Your lender will provide a Loan Estimate and later a Closing Disclosure outlining your specific costs.

4. How long does it take to get approved for a mortgage?

The timeline varies depending on your financial situation, the type of loan, and how quickly required documentation is provided. Preapproval can be completed within 1-2 days, while the full mortgage process—from application to closing—often takes several weeks. Working with your lender to provide requested documents promptly can help keep the process moving.