Key takeaways
- A strong offer starts with a verified pre-approval and clear numbers.
- Use the Affordability, Compare Loans, and Buydown calculators to stay informed.
- Prepare for appraisal gaps, set smart inspection expectations, and plan your down payment.
- Choose fixed-rate or ARM based on how long you expect to keep the loan.
Anchors of a strong offer (your buy and offer strategy)
Sellers look for reliability. A verified Radiant pre-approval shows a lender has reviewed your credit, income, and assets. It is stronger than a basic pre-qualification that may rely on unverified information. A pre-approval letter can include estimated payment and cash to close for a price range, which builds confidence with agents and sellers.
Appraisal gaps and inspections: how to stay on track
An appraisal gap happens when the appraised value is lower than the contract price. Most lenders calculate loan-to-value using the lower of the purchase price or appraised value. That can create a shortfall in loan amount and require action.
How to prepare for appraisal gaps
- Keep documented funds that could cover a possible gap.
- Ask your agent and loan officer about options for managing gaps.
- Negotiate seller credits or a lower price if the appraisal comes in low.
Inspection steps that protect your budget
Inspections protect your budget. Expect a few items to address. Decide what is a must-fix for your safety and finances. Share timelines with your loan officer so appraisal, underwriting, repairs, and disclosures stay aligned with your closing date.
PMI and down-payment strategy: what to know
Private Mortgage Insurance (PMI) applies to many conventional loans with less than 20% down. PMI protects the lender if you default; the cost varies by credit, loan type, and down payment size.
PMI basics
Added to many conventional loans with < 20% down; protects the lender, not the borrower.
Action: Factor PMI into your monthly budget when comparing loan options.
When it applies
Determined by loan-to-value (LTV) at closing and program guidelines.
Action: Ask your loan officer how LTV and program choice impact PMI.
Cost factors
- Credit score
- Down payment size
- Occupancy & loan type
Action: Use the Compare Loans Calculator to see total cost with and without PMI.
Removal rules
- Request cancellation at 80% LTV (original value; conditions apply).
- Automatic termination at 78% LTV if you are current.
- Ends at the midpoint of the loan term if earlier.
Down-payment trade-offs
Larger down payments can reduce or remove PMI sooner, but may deplete cash reserves.
Action: Balance minimum down payment with an emergency cushion for repairs and moving costs.
Next steps
Decide how long you’ll keep the loan and whether a buydown or ARM fits your timeline.
Try these tools: Affordability · Compare Loans · Buydown
ARM vs. fixed loans: how to choose
Adjustable-Rate Mortgages (ARMs) often start with a lower initial rate. After the fixed period, the rate can adjust up or down on a set schedule. Many ARMs include caps that limit each adjustment and the total life-of-loan change. Fixed-rate loans keep the same rate and payment for the full term and work well for long-term stability.
Use the Compare Loans Calculator to see how each option affects your monthly payment and total cost over your expected time in the home.
Helpful resources
FAQs
Get fully verified with a Radiant pre-approval and share the one-pager with your agent. It shows sellers that your financing is complete and dependable.
You can bring extra funds, ask the seller to adjust price or credits, or use contract contingencies to cancel according to your agreement if needed. Talk with your agent and loan officer early.
No. On most conventional loans, you may request cancellation at 80% LTV. PMI ends automatically at 78% or at the midpoint of the loan term if earlier, when you are current.
Not always. If you plan to move or refinance soon, an ARM can reduce initial cost. If you want long-term payment stability, a fixed rate can fit better.