Mortgage Resources & FAQs | Michelle Bailey

1. What credit score do I need to qualify for a mortgage?
Most lenders look for a credit score of 620 or higher for conventional loans, but FHA loans may approve borrowers with scores as low as 580.
2. How much money do I need for a down payment?
Down payments vary by loan type—conventional loans often require 3–5%, FHA loans require 3.5%, and VA/USDA loans may offer 0% down options.
3. What’s the difference between a fixed-rate and adjustable-rate mortgage?
A fixed-rate mortgage keeps the same interest rate for the entire loan.
An adjustable-rate mortgage (ARM) starts with a lower rate that may increase or decrease over time.

4. How much mortgage can I afford?
A good rule is to keep your monthly housing payment (including taxes & insurance) at 28% or less of your gross monthly income.
5. What is mortgage pre-approval, and why do I need it?
Pre-approval shows how much a lender is willing to loan you. It strengthens your offers when shopping for a home and helps avoid surprises later.
6. What are closing costs, and how much should I expect to pay?
Closing costs typically range from 2–5% of the home’s purchase price and include fees for the lender, appraisal, title, and more.