Frequently Asked Questions About Financing a Home

Purchasing a new home to create beautiful memories with the family is the dream of millions. However, if you’re looking to secure financing for a property, you may have tons of questions about mortgages but may find it tricky to get all the answers that you’re seeking.

So, to ensure you have all your doubts cleared, DoctorLoan.com has answered some of the most frequently asked questions about financing a home.

1. What credit score do I need?
The minimum credit score requirement varies depending on the lender and loan program. A score of 580 is known to be the minimum for FHA loans, but many lenders will require 600 or 620 as an internal minimum. Besides, jumbo and doctor loans typically require higher minimum credit scores, usually between 660 and 720.

2. What is the minimum required down payment?
It’s commonly believed that the minimum down payment requirement is 20%. However, several programs allow for less. The minimum down payment for an FHA loan is 3.5%, while non-jumbo conventional loans can have 3% and 5% down payment options with mortgage insurance. At the same time, individual lenders’ portfolio loans can have as little as no money down.

3. What should I expect to pay in closing costs?
Standard closing costs typically fall between 2% and 3% of the loan amount. So make sure you factor this into your budget and keep the money handy.

4. How do I pick a lender?
In some cases, lenders offer similar programs like FHA or VA loans. In those instances, you should pick a lender that makes you feel comfortable with their process, as it will help to avoid confusion and stress.

However, there may be times where lenders may have programs that precisely fit your circumstances. These programs may include nuances geared towards individuals, including doctors, lawyers, or teachers. Plans are also specifically designed for borrowers within certain income levels, so speak to an expert to find out more.

If you have any more questions about mortgages, get in touch with the experts at DoctorLoan.com. As niche mortgage specialists, we endeavor to match our clients with a suitable lending partner. Our team specializes in mortgage loans for physicians, doctors, dentists, and resident physicians across the entire United States of America.

To learn more about how we can help you, please click here or contact us by clicking here.