Mortgage Must-Knows

Essential knowledge every homebuyer should have before starting their mortgage journey. Get ahead with these insider tips.

Credit Score Impact

Your credit score is one of the most important factors in determining your mortgage rate and eligibility.

Check your credit report 3-6 months before applying

Pay down credit card balances to improve utilization

Don't open new credit accounts during the mortgage process

A score of 740+ typically gets you the best rates

You don't always need 20% down. There are many programs available for qualified buyers.

FHA loans require as little as 3.5% down

VA loans may require 0% down for qualified veterans

First-time buyer programs often offer assistance

PMI isn't permanent and can be removed

Understanding the difference can give you a competitive edge in today's market.

Pre-qualification is an estimate based on basic info

Pre-approval involves income and asset verification

Pre-approval shows sellers you're a serious buyer

Get pre-approved before house hunting

Multiple credit inquiries for mortgages are treated as one if done within a specific timeframe.

Shop for rates within a 14-45 day window

Multiple mortgage inquiries count as one hard pull

Compare APR, not just interest rates

Don't forget to factor in closing costs

Having your documents organized can speed up the approval process significantly.

2 years of tax returns and W-2s

Recent pay stubs (30 days)

Bank statements (2-3 months)

Asset statements for investments

Most lenders prefer a DTI of 43% or lower, though some programs allow higher ratios.

Include all monthly debt payments

Consider paying down debt before applying

Factor in the new mortgage payment

Some loans allow DTI up to 50% with compensating factors

Now that you know the essentials, let's find you the perfect loan officer who can guide you through the process.