First-Time Homebuyer Guide
Frequently Asked Questions
Straight answers to the questions we hear most.
While requirements vary by lender, a good credit score (typically 680 or higher) will help you secure the most favorable interest rates. Some lenders may offer products for scores in the mid-600s, but you will likely face higher rates and stricter eligibility criteria.
No. Loans backed by the Federal Housing Administration (FHA) have Mortgage Insurance Premiums (MIP), which have different, often more stringent, rules. For most FHA loans, MIP is for the life of the loan if you put down less than 10%. To remove it, you typically need to refinance into a conventional loan.
You will typically need to provide:
Proof of income: Recent pay stubs, W-2s from the past two years, and tax returns.
Proof of assets: Bank and investment account statements.
Identification: A government-issued ID, like a driver’s license or passport.
Credit authorization: Lenders will pull your credit report with your permission.
Proof of income: Recent pay stubs, W-2s from the past two years, and tax returns.
Proof of assets: Bank and investment account statements.
Identification: A government-issued ID, like a driver’s license or passport.
Credit authorization: Lenders will pull your credit report with your permission.
While rare, servicer errors can occur. If you receive a late notice or cancellation warning from your tax authority or insurance company, contact your mortgage servicer immediately. They are responsible for making timely payments from your escrow funds. Keep all documentation and follow up in writing. The servicer is typically required to pay any late fees incurred due to their error.
You will likely lose any application or processing fees paid to the original lender that are non-refundable. You will also have to pay for a new credit report, a new appraisal, and potentially a new title search.
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