Walk through the mortgage process: what credit score you need, how to get pre‑approved, and the differences between conventional, FHA, VA, and more.
A mortgage is the biggest loan you'll ever take. Understanding the process, your options, and how lenders evaluate you can save thousands of dollars and reduce stress. Let's demystify credit scores, pre‑approval, and loan types.
Your credit score (FICO) determines eligibility and interest rate. Conventional loans typically require 620+, FHA 580+, VA/USDA no minimum but lenders prefer 620+. Check your reports for errors.
A lender reviews your finances and gives a conditional commitment. It shows sellers you're serious and helps you know your budget. Requires income, asset, and credit verification.
Conventional (3% down), FHA (3.5%, MIP), VA (0%, funding fee), USDA (0%, income limits), Jumbo (exceeds conforming limits). Each has different requirements and costs.
Rates depend on market, credit, down payment, loan type. APR includes fees and points – a better comparison tool than rate alone.
Pre‑qualification is a quick estimate based on self‑reported data. Pre‑approval involves a hard credit pull and document review (W2s, pay stubs, bank statements, tax returns). It's valid for 60–90 days.
Pro Tip: Get pre‑approved before house hunting. Sellers won't consider offers without it. Compare offers from 3–5 lenders to find the best rate and fees.
Adjust the sliders to see estimated monthly payments for different loan types.
Adjust the values and click the button.
This calculator estimates principal & interest only. Actual payments include property taxes, insurance, and possibly PMI/MIP/funding fees. Consult a lender for precise numbers.
| Loan Type | Min Down Payment | Min Credit Score | Mortgage Insurance | Best For |
|---|---|---|---|---|
| Conventional | 3% (first-time) / 5% | 620 | PMI if <20% down | Good credit, stable income |
| FHA | 3.5% | 580 (500 with 10%) | MIP (upfront + annual) | Lower credit, smaller down payment |
| VA | 0% | No minimum (lender may want 620) | No PMI, but funding fee | Veterans, active military |
| USDA | 0% | 640 (lender dependent) | Guarantee fee (upfront + annual) | Rural buyers, income limits |