Answers to Common Mortgage Questions.
Clear, straightforward answers to help you feel confident as you move through the homebuying process.
Buying a home comes with a lot of questions - especially if it's your first time. This page covers the most common questions we hear so you can move forward with more clarity and less stress.
Most loan programs require a minimum credit score between 580- 620. Higher scores can help you qualify for better rates, but lenders also look at income, debt, savings, and overall financial history - not just your score.
It depends on the loan type:
- Conventional: as low as 3% down
- FHA: 3.5% down
- VA & USDA: 0% down for eligible borrowers
Note: A larger down payment can reduce your monthly payment, but it's not required to buy a home.
- Pre-qualification: quick estimate based on self-reported info.
- Pre-approval: verified review of income, credit, and assets
Note: A pre-approval letter is stronger and shows sellers you're a serious buyer.
Your rate is based on market conditions plus personal factors like credit score, loan type, and down payment. Rates can be fixed (stay the same) or adjustable (change over time). Even a small rate difference can significantly impact your monthly payment.
Most payments include:
- Principal (loan balance)
- Interest
- Property taxes
- Homeowners insurance
- Mortgage insurance (if required)
Note: This is often called PITI.
Mortgage insurance protects the lender if you default. You may need it if your down payment is less than 20% on a conventional loan or if you use an FHA loan. It can often be removed later once you reach enough equity.
Most loans close in 20-40 days, depending on the loan type, appraisal timing, and how quickly documents are provided. Getting pre-approved early helps speed things up.
- Fixed-rate: Your interest rate and payment stay the same for the life of the loan.
- Adjustable-rate (ARM): Starts with a lower rate, then adjusts at set intervals.
Note: Fixed-rate loans offer stability; ARMs offer lower initial payments.
Yes. You'll typically need:
- 2 years of tax returns
- Business financials
- Consistent income history
Note: Lenders look for stability and the ability to repay - not your job type.
Refinancing may make sense if you want to:
- Lower your interest rate
- Reduce your monthly payment
- Pay off your home faster
- Remove mortgage insurance
- Tap equity for renovations or debt consolidation
Note: A quick review of your current loan vs. today's options can show if it's worth it.
