Frequently Asked Questions
Common questions about mortgages and the home buying process.
How much do I need for a down payment?
Down payment requirements vary by loan type. Conventional loans can require as little as 3%, FHA loans require 3.5%, and VA loans often require no down payment at all. Contact me to discuss which options work best for your situation.
What credit score do I need to buy a home?
The minimum credit score depends on the loan program. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Higher scores generally mean better rates. I can help you understand your options based on your current credit.
How long does the mortgage process take?
The typical mortgage process takes 30-45 days from application to closing. However, with proper preparation and responsive documentation, we can often close faster. Getting pre-approved early helps speed up the process.
What documents do I need to apply for a mortgage?
Common documents include: recent pay stubs, W-2s or tax returns for 2 years, bank statements, photo ID, and information about your current debts. Self-employed borrowers may need additional documentation.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on self-reported information. Pre-approval is a more thorough process where your credit, income, and assets are verified, resulting in a conditional commitment from the lender. Pre-approval carries more weight with sellers.
Should I pay points to lower my rate?
Paying points (prepaid interest) can lower your rate, but it depends on how long you plan to stay in the home. I can calculate your break-even point to help you decide if paying points makes financial sense for your situation.
What are closing costs?
Closing costs include fees for loan origination, appraisal, title insurance, escrow, and other services. They typically range from 2-5% of the loan amount. I will provide you with a detailed estimate early in the process so there are no surprises.
Can I get a mortgage if I am self-employed?
Yes! Self-employed borrowers can qualify for mortgages. We offer various programs including bank statement loans that use your business deposits rather than tax returns. Contact me to discuss your specific situation.
Still Have Questions?
I am here to help. Contact me for personalized answers to your mortgage questions.