Asking questions is a great way to gain clarity and understanding of your mortgage. Below are a few key questions to ask your lender when you’re in the process of buying a home.
What Credit Score Do I Need To Qualify For A Mortgage?
Your credit score will play a major role in whether or not you qualify for a mortgage loan.
For the most part, you’ll need a credit score of at least 670 to qualify for a conventional loan, and a score of 740 or above to qualify for the best interest rates. However, it’s important to keep in mind that these are general guidelines – each lender will have their own specific requirements.
What’s Included In My Closing Costs?
Your closing costs will include a variety of fees and charges, from the appraisal fee to the loan origination fee.
It’s important to get a good understanding of all the fees you’ll be responsible for so there are no surprises when it comes time to close on your home.
How Much Can I Borrow?
The amount you can borrow will depend on a number of factors, including your income, debts, and the type of mortgage you’re interested in.
Your lender will be able to give you a more accurate estimate once they’ve had a chance to review your financial situation.
What Is A Typical Down Payment?
The size of your down payment will depend on the type of mortgage you’re getting. For a conventional loan, you’ll usually need to put down 20%. For an FHA loan, you can put down as little as 3.5%.
For many individuals, buying a home is a major life decision and investment – it’s important to go through the process with the right insight. By asking the questions outlined above, you’ll be one step closer to making the best decision for you and your family.