Your credit score is an essential factor in mortgage lending. Most lenders prefer a credit score of 620 or higher for conventional loans. However, many loan programs are available for borrowers with lower credit scores. A higher credit score can help you qualify for better interest rates and loan terms. It’s a good idea to review your credit report, address any errors, and work on improving your credit score before applying for a mortgage. You can access your credit report for free once a year from www.annualcreditreport.com.

The down payment amount required can vary depending on the type of mortgage and the lender. For conventional loans, a down payment of 3% to 20% of the home’s purchase price is typical. Government-backed loans like FHA loans may require as little as 3.5% down, while VA loans and USDA loans may require no down payment for eligible borrowers. A larger down payment can reduce your monthly mortgage payments and may help you avoid private mortgage insurance (PMI) costs.

In addition to the down payment, you’ll encounter several other costs, including closing costs, which typically range from 3% to 6% of the home’s purchase price. These costs cover fees for loan origination, appraisal, title insurance, escrow, and more. You should also budget for ongoing expenses like property taxes, homeowners’ insurance, maintenance, and utilities.

The time it takes to get a mortgage can vary depending on factors such as your lender’s processes, the type of loan, and the complexity of your financial situation. On average, it takes around 21 to 30 days from the time you apply for a mortgage to the closing date. However, some loans, like FHA or VA loans, may have slightly longer processing times. It’s essential to work closely with your lender and provide all required documentation promptly to help expedite the process.

Being self-employed doesn’t disqualify you from getting a mortgage, but it may require more documentation to verify your income. Lenders will typically ask for at least two years of tax returns, profit and loss statements, and bank statements to assess your income stability. Working with a mortgage expert who understands the complexities of self-employed income, such as myself, can be very helpful in this situation.

Yes, you can use a co-borrower to help you qualify for a mortgage. This is common for borrowers who may not meet income or credit requirements on their own. A co-borrower shares the responsibility for repaying the loan and may also contribute to the down payment and other expenses. Be aware that the co-borrower’s credit and financial history will also be considered during the underwriting process.

As a mortgage broker, we partner with over 100 lenders who offer a variety of loan options to meet your specific needs. Some common mortgage types include:

   – Conventional Loans

   – FHA Loans

   – VA Loans

   – USDA Loans

   – Jumbo Loans

   – Fixed-Rate Mortgages

   – Adjustable-Rate Mortgages (ARMs)

   – Interest-Only Loans

   – Construction and One-Time Close Construction Loans

   – Bridge Loans (used to purchase another home while you are selling your current home)

   – Debt Service Coverage Ratio (DSCR) Loans (used to purchase rental properties)

   – Reverse Mortgages

   – Commercial Loans

Each of these loans has unique features and eligibility requirements. We can help you explore which loan type is the best fit for your financial situation and homeownership goals.