Prequalification is a good way to estimate home prices you can afford, so you can search for houses that fit your budget.

The process is simple. You'll need to answer a few questions about yourself and anyone who will be applying for the mortgage with you. We'll ask for information about your income and expenses, as well as your down payment. We'll also ask your permission to run a credit check.

You can get prequalified for a mortgage in minutes by calling an experienced Loan Advisor at 888-369-3719. You can also start the prequalification process online.

Freedom Mortgage prequalifications are free and valid for 90 days. If your home search takes longer than that, it's simple to get a new prequalification letter.

The price of affordable homes is different for each person. Use the affordability calculator on this page to estimate how much you might be able to afford. Consider these factors, too:

• Income. How much money you make has a big impact on the price of homes you can afford.
• Debt payments. The amount you spend a month on student, car, or other loan payments affects how much you can spend to buy a home.
• Down payment. Saving for a larger down payment can often help you buy a more expensive home.
• Interest rates. When mortgage rates are high, you'll need to spend more money on interest payments, which reduces the price of homes you can afford. When rates are lower, you can often afford more expensive houses.
• Closing costs. You might pay between 2% and 7% of the purchase price in closing costs, according to Realtor.com. Many times, you'll need to pay these costs in cash at closing.

There are many ways to make buying a home more affordable. Check out our 11 money-saving, homebuyer tips.

It's important to consider the cost of your mortgage payment, as well as home prices, when you are buying a new home. Use our mortgage payment calculator to estimate your monthly payment. It might be wise to also think about these costs:

• Principal and interest. These are a big part of your mortgage payment. When interest rates are high, you'll pay more interest each month. When they are low, you'll pay less.
• Property taxes and homeowners insurance. Your monthly payment will include the cost of taxes and insurance. If your taxes or insurance premiums are expensive, these will affect the affordability of your payments.
• Mortgage insurance. Many loans require you to pay for mortgage insurance as part of your mortgage bill. Learn more about mortgage insurance.
• Other homeowning costs. Maintenance and repairs, utility bills, HOA fees, and other expenses aren't included in your mortgage payment, but they are costs you often pay when you buy a home.

Most homebuyers are eligible for Conventional and FHA loans. Conventional loans typically have higher credit score and financial requirements than FHA loans. When compared to FHA loans, however, Conventional loans may have more competitive rates and terms with lower mortgage insurance costs.

Veterans, active-duty military personnel, and surviving spouses are eligible for VA loans. Rural and some suburban homebuyers are eligible for USDA loans, as well.

All these loans require you to complete a mortgage application and meet our requirements to get approved. Check out our loan comparison table:

FILTERS LOANS

Conventional

FHA

VA

USDA