The answer to this question will depend on the amount of your down payment, and loan type. Generally, you will need to be at or below 80% Loan-to-value to avoid mortgage Insurance entirely. That means a 20% down payment or greater or 20% equity in the value of the home you are purchasing. However, the FHA loans require mortgage Insurance regardless of down payment, so if you get an FHA loan, Mortgage Insurance is unavoidable.

It all depends on the type of loan you’re applying for. Your credit score is a number that ranges from 300 to 850, and that number is used to indicate your creditworthiness. The higher your score, the more lenders will want to work with you. Though higher credit scores are considered more favorable for lenders credit. It all depends on the type of loan you’re applying for. Conventional and government-backed loans such as FHA, VA, and USDA have different requirements. Conventional Loan- Conventional loans aren’t guaranteed or backed by a government program. They’re best suited to borrowers that have higher credit scores and money saved up for a down payment. It’s recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won’t be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments. FHA Loan- If you have a lower credit score or don’t have much cash socked away for a down payment, you might consider an FHA loan, which is insured by the Federal Housing Administration. The minimum credit score for an FHA loan is usually 580. However, having a higher credit score may help you qualify for a better FHA mortgage rate. VA Loan- A government-backed VA loan might be an option for you if you’re a veteran or qualified servicemember or spouse. There’s no VA set a minimum credit score requirement to buy a home. Some lenders require a credit score of at lease 580 for a VA Loan. USDA Loan- You could look into a government-backed USDA loan if you plan to live in a qualified rural or suburban area and have an income that falls below 115% of the area’s median income. Most lenders require a minimum credit score of 640 for USDA loans.

The most common documents you will need to provide. · Photo ID, such as drivers license, state issued photo ID, or Passport · Pay Stubs to demonstrate your current income and employment status · 3 months previous bank statements to show savings and cashflow · Tax returns and W-2 forms, as well as any other income documentation

With a good Loan Officer, a solid documentation package, and persistence, buyers can close in as fast as 21 days. Buyers who pay cash for their new home, instead of going through the mortgage application process, typically close faster. But even when paying cash, it often takes at least a couple of weeks to close.