Not necessarily, but it will certainly help. It is possible to get a conventional mortgage with a fico credit score as low as 620, and you can obtain a higher cost FHA mortgage with a score in the 500’s. However,be aware that the lower your credit score, the higher the interest rate could be.

The short answer is that you can get a conventional mortgage with as little as 3% down, an FHA loan with 3.5% down, and a VA or USDA loan with no money down at all. However, with a conventional or FHA loan, you'll have to pay private mortgage insurance also knowns as PMI, if your down payment is less than 20% of the home’s sales price. We also offer programs where the lender pays the mortgage insurance in exchange for a higher interest rate. Your loan officer will help you determine which product is right for you.

The term "closing costs" refer to all of the charges you'll need to pay before your loan is completed. This can include origination fees, title insurance, prepaid escrows, and more. Closing costs can vary significantly, but generally, expect to pay around 2% to 3% of the home's price in closing costs. These costs can be higher or lower depending on the transfer tax rates in your municipality and state.
When interest rates are historically low, like they are now, a fixed-rate mortgage makes good financial sense. Not surprisingly, the vast majority of mortgages originated today are fixed-rate. In fact, only about 3% of buyers are choosing adjustable-rate loans. That said, while a fixed-rate mortgage is the best choice for the majority of homebuyers, there are some circumstances where an ARM may be better. For example, if you expect to sell the house before the fixed-interest period ends and the rate starts to float, an ARM could end up saving you thousands of dollars. Or, during periods of falling interest rates, an ARM can allow you to get a low initial rate, and will save you money later if rates drop further.
There are several different types of mortgages to choose from. A conventional mortgage is tougher to qualify for credit-wise, but an FHA loan can be costlier. If you're a veteran, a VA loan could be the best option for you, and if you plan to buy a home in a rural area, a USDA mortgage could give you a no-money-down option.
Discount points are money that you pay up front on your mortgage in exchange for a lower interest rate. One "point" is equal to 1% of the loan amount, so on a $200,000 mortgage, one discount point would be $2,000. If the interest savings over the life of the loan is greater than the points paid, it can be worth it. A mortgage calculator can help you determine whether discount points are a good idea by comparing the effect of various interest rates on your mortgage.
This depends on how much you want to stretch your budget. If you can afford the higher monthly payments, a 15 year mortgage usually comes with a better interest rate than a 30-year version. Not only will you pay off the house quicker, but you can save a tremendous amount of interest. On the other hand, a 30-year mortgage will cost less per month, allowing you to afford a bigger or nicer house, or one in a better location.
Different items are required depending on your situation. Once you make application, a customized checklist of required documents will be provided with your application. However, typical items are

- Income documents: 30 days paystubs, 2 years W2’s and/or tax returns

- Asset Documents – 2 months bank statements/investment account statements showing funds used for closing.

- Identification

If you are getting a gift, or taking a 401k loan to buy your home, specific instructions will be provided so you know exactly what documentation the underwriter will need for review.
When you obtain a mortgage, you'll probably be asked to put money into an escrow account to guarantee the lender that the ongoing expenses of owning the property will be handled -- specifically taxes and insurance. You'll pay a lump sum into the escrow account at closing (also known as your "prepaids"), and add to it further with each of your monthly mortgage payments.
On average, mortgages tend to take 30 days to complete. There are a lot of things that need to happen between you submitting your mortgage application and taking ownership of your home. You’ll need to gather documentation, schedule your inspections, the seller may need time to complete repairs, and the loan needs to make its way through underwriting.
Depending on your situation, there are typically three or four parts of your mortgage payment:
* Principal: Repayment of your outstanding balance.

* Interest: Payment of the interest charged on the outstanding balance.

* Taxes: One-twelfth of your expected annual property taxes will be included in your mortgage payment, and deposited into your escrow account.

* Insurance: This includes homeowner's insurance, as well as any other hazard insurances you're required to have, such as flood or windstorm. If you put less than 20% down on your loan, this can also include private mortgage insurance.

Based on these four items, your mortgage payments are sometimes referred to as PITI.
Probably. Even with a fixed-rate loan, your payment is likely to change over time. The reason? Your property taxes and insurance expenses, upon which the escrow portion of your payment is based, tend to fluctuate. If they rise, it may be necessary for your lender to ask for a higher escrow payment.