Do I need great credit for a mortgage loan?

No. But the better the credit score, the lower the rate.

Do I need a 20% down payment to buy a home?

No. Although, traditional conventional financing requires a down payment of 10 to 20% of the purchase price of the home, there are other home loan programs available such as an FHA program that allows you to buy a home with as little as 3.5% down. In addition to the down payment, you should be aware that there are other fees associated with purchasing a home.

How much of a mortgage payment can I afford?

For qualification purposes, lenders look at income, debt, assets and credit. There are different loan programs that offer different terms and rates, and some require lower down payments than others and offer more flexibility in credit and income. The best thing to do is to use a mortgage calculator to find out what your payments would be.

What type of documentation do I need for a mortgage loan?

The standard documentation collected includes information regarding your income, such as paystubs and W-2, and assets, such as bank statements.

What are closing costs?

Closing costs refers to the sum of all the fees that you need to pay before your loan closes. This can include origination, appraisal, prepaid escrows, and more.