Mortgage Basics & Choosing the Right Loan: A Clear Guide for Homebuyers
Understanding mortgages does not need to feel confusing or intimidating. A well-structured, no-pressure session—like Mortgage Basics and Choosing the Right Loan, hosted by The Shaina McAndrews Team with lending expert Matt Gordon—gives buyers the clarity they need to choose the right financing and move forward with confidence.
Why Your Mortgage Choice Matters
For most buyers, the mortgage is the biggest financial commitment in their life, often lasting 15–30 years. Choosing the right loan type can impact your monthly payment, total interest paid, and how flexible your finances feel for years to come.
A focused education event helps you understand not just what options exist, but which structure best fits your budget, timeline, and comfort level—before you start writing offers.
Common Mortgage Options (And Who They Fit)
There are several major categories of home loans, each designed with different buyers in mind. Knowing the basics helps you ask smarter questions when you sit down with a lender.
Some of the most common options include:
Conventional loans – Often best for buyers with stronger credit and at least a modest down payment; they offer flexibility and can avoid mortgage insurance with 20% down.
Government-backed loans (FHA, VA, USDA) – Typically suited to buyers with lower credit scores, limited savings, or specific eligibility (such as veterans or certain rural areas); these programs can offer lower down payments or more flexible guidelines.
Fixed-rate vs. adjustable-rate mortgages (ARMs) – Fixed-rate loans keep the same interest rate for the full term, offering stable payments, while ARMs may start lower but can adjust over time, making them better for buyers who plan to move or refinance within a few years.
During the event, Matt Gordon will walk through these options in plain language and help you understand which buckets you likely fall into based on your goals and finances.
What Lenders Look For in Approval
Getting approved is not just about liking a house; it is about demonstrating to the lender that you can reliably repay the loan. Lenders use a combination of factors—often called the “4 Cs”: credit, capacity, capital, and collateral—to make that decision.
Key things lenders typically review include:
Credit score and history – Your track record of paying debts, with higher scores generally opening doors to lower rates and more options.
Income, employment, and debt-to-income (DTI) ratio – How much you earn, how stable that income is, and how much of it is already committed to other debts.
Savings and down payment – Cash available for down payment, closing costs, and reserves, which helps show that you are financially prepared for homeownership.
Property value and condition – Verified through an appraisal to ensure the home is worth what you are paying, since the property secures the loan.
In the session, you learn how to “package” yourself as a strong borrower and which parts of your profile to improve before applying.
How to Prepare Financially Before Buying
Good preparation can make the difference between a stressful experience and a smooth one. The event is designed to help you build a practical game plan rather than rushing into the market unprepared.
Smart preparation usually includes:
Checking and improving your credit, correcting errors, and paying down certain debts to strengthen your DTI.
Saving for your down payment, closing costs, and a small emergency cushion; many buyers aim for at least 3–5% down, and more if they want to avoid mortgage insurance.
Setting a realistic budget using affordability calculators and an honest look at your monthly cash flow, instead of shopping at the very top of your approval amount.
By the time you finish the session, you will know which steps to focus on first, what kind of timeline is realistic, and when it makes sense to move from preparation into active home shopping.
A No-Pressure, Ethics-First Experience
Mortgage Basics and Choosing the Right Loan is part of the Prepare to Buy a Home Series from The Shaina McAndrews Team, powered by eXp Realty, which is built around education, not hard sales. The goal is to equip you with knowledge so that when you are ready to buy or sell—whether that is soon or months from now—you already have a trusted team and lending partner in your corner.
These sessions are specifically intended for buyers who are not currently under a signed buyer representation agreement, honoring the ethical standards of the real estate industry and protecting existing agent-client relationships. If you are early in your journey and want clear, honest guidance from both a real estate team and a lender, this event is designed for you.
