Your credit score is a number between 300 and 850.
Here's what each range actually means for your mortgage.
Lenders use your FICO score to decide two things: whether to approve you, and what interest rate to charge. A difference of 40 points can mean $180 more per month on a $350,000 loan.
The 720 threshold matters most
At 720+, you qualify for conventional loans with the best available rates. Below 620, FHA becomes your primary path. Between those two numbers, the rate difference can be significant.
Quick Action
Pull your free credit report at annualcreditreport.com. Dispute any errors — even small inaccuracies can suppress your score by 20–30 points.
Down payment math is simpler than you've been told.
You probably don't need 20%. Here's the actual math.
The "20% down" rule is a myth that has kept an entire generation renting. The real minimum depends on your loan type — and the tradeoffs are calculable.
PMI Reality Check
PMI (Private Mortgage Insurance) costs 0.5–1.5% of the loan annually — roughly $150–$375/month on a $300K loan. It cancels automatically when you reach 20% equity. For most buyers, it's worth paying to get in the market sooner.
Pre-qualification and pre-approval are not the same thing.
One is a conversation. The other is a document sellers respect.
In competitive markets, submitting an offer without a pre-approval letter is like showing up to an interview without a resume. Here's exactly what each step involves.
- Self-reported income
- No credit pull
- Estimate only
- Not binding
- Verified income docs
- Hard credit pull
- Conditional commitment
- Sellers take seriously
Documents You'll Need
Closing costs are the number nobody warns you about.
Budget 2–5% of the loan amount. Here's where it goes.
On a $400,000 home, closing costs typically run $8,000–$20,000. Most of it isn't negotiable. But knowing the breakdown eliminates the shock at the closing table.
Negotiation Lever
In a buyer's market, you can negotiate seller concessions of 2–6% to cover closing costs. This effectively lets you roll these fees into the purchase price — reducing your out-of-pocket cash needed at closing.