Mortgage FAQs

Concise answers to common questions from homebuyers, homeowners, veterans, and families considering retirement-housing choices.

By Holly Luca | Mortgage Strategist | LendingProf | Loan Factory, Inc. | NMLS #586712. Licensed in CA, FL, IA & TX.

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How much money do I need to buy a home?

It depends on the loan, price, property, assistance eligibility, credits, closing costs, prepaid taxes and insurance, and reserve requirements. Some eligible programs allow low or no required down payment, but buyers should still plan for transaction and ownership expenses.

Does preapproval guarantee approval?

No. Preapproval is conditional. Final approval depends on verified documents, underwriting, the property, appraisal, title, insurance, and unchanged borrower circumstances.

What credit score do I need?

There is no single score for every mortgage. Minimums and pricing vary by program, lender, occupancy, property, down payment, debts, reserves, and the full credit profile.

Can seller credits pay all closing costs?

Seller credits may cover eligible costs within program and transaction limits, but cannot always cover every expense or be received as unrestricted cash. Contract terms, value, lender rules, and actual costs matter.

Can eligible veterans buy with zero down?

Eligible borrowers may use VA financing with no required down payment, subject to entitlement, lender approval, value, occupancy, property standards, residual income, and VA rules. Closing costs and a funding fee may still apply unless exempt.

Can I use down payment assistance?

Possibly. Assistance depends on funding, location, income, price, credit, occupancy, education, loan compatibility, and other rules. Some assistance is repayable or becomes due after sale, refinance, transfer, or loss of occupancy.

Can I get a reverse mortgage with an existing mortgage?

Possibly. Existing mortgages and required liens generally must be paid at closing using reverse-mortgage proceeds or other funds. Qualification and proceeds depend on age, equity, value, liens, assessment, property, rates, and program rules.

Do reverse-mortgage borrowers keep paying taxes and insurance?

Yes. Borrowers must continue to meet property-tax, insurance, maintenance, occupancy, and other loan obligations. Failure to comply may cause the loan to become due and payable and can result in foreclosure.

Should I open new credit before closing?

New debt or credit inquiries can affect qualification. Discuss financing, co-signing, large purchases, job changes, and significant fund transfers before acting during preapproval or underwriting.

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Use Mortgage 101 for general mortgage planning. Retirement-housing questions can use the specialized retirement calendar.

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Holly Luca | Mortgage Strategist | LendingProf | Loan Factory, Inc. | NMLS #586712

Licensed in CA, FL, IA & TX. Loan Factory, Inc. | Company NMLS #320841 | Equal Housing Opportunity.