Frequently Asked Questions
Get answers to common mortgage questions from Marcus Vogt, your trusted Washington & Idaho mortgage expert.
How much do I need for a down payment?
Down payment requirements vary by loan type: FHA loans require just 3.5% down, VA loans offer $0 down for veterans, Conventional loans typically require 3-20% down, and USDA loans offer $0 down for rural properties. Many first-time buyers use FHA loans with 3.5% down.
What credit score do I need for a mortgage?
Minimum credit scores vary: FHA loans accept 580+ (500+ with 10% down), Conventional loans require 620+, VA loans have no minimum but 620+ is recommended, and Jumbo loans require 700+. Higher scores qualify for better interest rates.
How long does it take to get approved for a mortgage?
Pre-approval typically takes 24-48 hours with complete documentation. Full approval and closing usually takes 30-45 days. Working with an experienced lender like Marcus Vogt can expedite the process significantly.
Can I buy a house with student loans?
Yes! Student loans don't disqualify you from getting a mortgage. Lenders include your monthly student loan payment in debt-to-income calculations. Income-driven repayment plans can help lower your monthly payment and improve qualification.
What documents do I need for a mortgage?
Required documents include: 2 years of tax returns, 2 recent pay stubs, 2 months of bank statements, W-2s for the past 2 years, photo ID, and proof of any additional income. Self-employed borrowers need additional business documentation.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate based on self-reported information. Pre-approval involves document verification and credit check, providing a conditional commitment from the lender. Pre-approval carries more weight with sellers.
How much house can I afford?
A general rule is that your monthly housing payment shouldn't exceed 28% of gross monthly income. Use our calculator to get a personalized estimate. Lenders also consider your total debt-to-income ratio, which shouldn't exceed 43-50%.
What are closing costs and how much are they?
Closing costs typically range from 2-5% of the purchase price and include: appraisal fee, title insurance, origination fees, escrow fees, and prepaid items. Some loan programs allow sellers to pay closing costs.
Should I choose a 15-year or 30-year mortgage?
30-year mortgages offer lower monthly payments and more flexibility. 15-year mortgages have higher payments but lower interest rates and build equity faster. Your choice depends on your financial goals and monthly budget.
Can I get a mortgage if I'm self-employed?
Yes! Self-employed borrowers need 2 years of tax returns, profit/loss statements, and business bank statements. Lenders average your income over 2 years. Working with an experienced lender is crucial for self-employed applicants.
What is private mortgage insurance (PMI)?
PMI is required on conventional loans with less than 20% down payment. It protects the lender if you default. PMI typically costs 0.5-1% of the loan amount annually and can be removed once you reach 20% equity.
How do interest rates affect my monthly payment?
Interest rates significantly impact your payment. On a $400,000 loan, a 1% rate difference changes your monthly payment by about $240. Even a 0.25% difference saves thousands over the loan term.
What is an escrow account?
An escrow account holds funds for property taxes and homeowners insurance. Your lender collects 1/12 of annual costs monthly and pays these bills on your behalf. This ensures taxes and insurance are always paid on time.
Can I buy a house with a co-borrower?
Yes! Co-borrowers combine income and credit to qualify for a larger loan. Both parties are equally responsible for the mortgage. This is common for married couples and can help first-time buyers qualify.
What happens if I'm denied for a mortgage?
If denied, lenders must provide specific reasons. Common issues include credit score, debt-to-income ratio, or employment history. Work with your lender to address these issues and reapply. Many denials can be overcome with proper guidance.
Still Have Questions?
Contact Marcus Vogt directly for personalized answers to your mortgage questions.