A mortgage pre-approval gives you a clear idea of how much you can borrow before shopping for a home. It involves a lender checking your financial background, including your income and credit score. Having a pre-approval not only helps you budget but also shows sellers you’re a serious buyer.

Closing costs are fees associated with finalizing a mortgage loan. They can include inspections, title insurance, and escrow fees. Typically, these costs can range from 2% to 5% of the purchase price, so it’s important to budget for them when buying a home.

Your interest rate can be influenced by various factors such as your credit score, the size of your down payment, and the type of loan you choose. A higher credit score usually means a lower interest rate, while a larger down payment may also lower your costs.

Refinancing involves taking out a new loan to replace your existing mortgage. This can help you secure a better interest rate or alter the terms of your loan. It’s a useful option if rates have dropped or if your financial situation has improved since you first took out your mortgage.

A fixed-rate mortgage means that your interest rate stays the same throughout the life of the loan. This provides predictable monthly payments and protects you from interest rate fluctuations. It’s a good choice if you plan to stay in your home for a long time.