Mortgage FAQs
The amount you qualify for depends on factors such as your income, credit score, debt-to-income ratio, and down payment.
Getting pre-approved is the best way to understand your buying power.
Credit score requirements vary by loan type, but many borrowers can qualify with a fair to good credit score. Even if your score isn’t perfect, there may be mortgage options available.
Pre-qualification provides an estimate of what you may afford, while pre-approval is a more detailed review of your finances that strengthens your offer when buying a home.
Refinancing replaces your current mortgage with a new one—often to lower your interest rate, reduce monthly payments, shorten the loan term, or access home equity.
PMI is insurance which lenders require for homes financed at above 80% Loan to Value (LTV). If you purchase a home with less than 20% down, you’ll need to pay PMI. The cost is based on the LTV premium multiplied by the loan amount, divided by 12.
Loan-to-Value (LTV) is calculated by dividing the loan amount by the property’s appraised value or purchase price (whichever is lower), then multiplying by 100.