Mortgage Resources

Pre-qualification is an initial assessment based on information you provide about your finances. Pre-approval is a more formal process where a lender verifies your financial information and credit history to give you a specific loan amount you're approved for. Pre-approval carries more weight when making offers on homes.

Down payment requirements vary by loan type: Conventional loans typically require 3-20%, FHA loans require 3.5% minimum, VA loans often require 0% down, and USDA loans may require 0% down for eligible rural properties. A larger down payment can help you secure a better interest rate and avoid private mortgage insurance.

Several factors can impact your mortgage rate, including: credit score, loan-to-value ratio, loan term, loan type, property location, loan amount, market conditions, and discount points purchased. Generally, a higher credit score and larger down payment will help you secure a lower rate.

Closing costs are fees and expenses you pay when finalizing a mortgage, typically ranging from 2-5% of the loan amount. These may include: lender fees, appraisal fees, title insurance, escrow fees, prepaid property taxes and insurance, and more. Some closing costs may be negotiable, and some loans allow closing costs to be rolled into the loan amount.

The time to close on a mortgage varies but typically takes 30-45 days from application to closing. Factors that can affect the timeline include: loan type, property appraisal scheduling, title issues, verification of employment and assets, and lender processing times. Being responsive to document requests can help speed up the process.