To qualify for the majority of loan types, you typically need a good credit score, steady income, a manageable debt-to-income ratio, and a financial plan to get to the closing table. Specific requirements vary depending on the loan type, so it's essential to discuss and strategize with a loan originator.

It's possible to get a mortgage without a credit score, but it's challenging. Other aspects of your financial history can be assessed instead of relying solely on a credit score. You may need to provide alternative forms of credit history, such as rental payment history, utility bills, or proof of timely payments for other recurring expenses.

Determining how much home you can afford involves considering your income, savings, monthly expenses, debts, and financial goals. A general guideline is that your monthly mortgage payment should not exceed 28-31% of your gross monthly income. It's crucial to factor in other expenses like property taxes, homeowner's insurance, and maintenance costs. We recommend looking at the monthly payment and how that fits into your budget, lifestyle, and financial goals.

Every loan type has its own minimum down payment but other factors can come into play. In general, a conventional loan typically requires a minimum down payment of around 5% of the purchase price, potentially as low as 3% for first time home buyers. FHA loans down payment can be as low as 3.5%. VA loans and USDA loans may offer options for no down payment or low down payment requirements for eligible borrowers. It’s essential to look at your specific situation with a trusted and knowledgeable loan originator to assess what loan options are available to you.

For most traditional loan types you will need identifying documents such as a drivers license, 2 years of W-2's and/or 1099's, 2 month most recent pay stubs, 2 years tax return documents, and 2 months bank statements. If applicable to you, you may need to provide additional documents such as a divorce decree, business tax returns all schedules and pages, or additional documentation for a co-borrower.

Closing costs include all the behind the scenes costs for completing the real estate transaction including loan origination, loan processing, title search, title insurance, real estate attorney, recording fees, and property escrow deposit to taxes and insurance payments. For the majority of files we see closings costs range between 3% and 5%.