Not necessarily, but it will certainly help. It is possible to get a conventional mortgage with a credit score as low as 600, and you can obtain a higher-cost mortgage with a score in the 500s. However, be aware that the lower your score, the higher your interest rate will be.

The short answer is that you can get a conventional mortgage with as little as 5% down. However, with a conventional, you'll have to pay Mortgage Insurance, if your down payment is less than 20% of the home's sale price.

The term "closing costs" refer to all the charges you'll need to pay before your loan is completed. This can include Land Transfer Tax, title insurance & Lawyer’s Cost. Closing costs can vary significantly, but generally, expect to pay around 1.5% to 2% of the home's price in closing costs.

When interest rates are historically low, like they are now, a fixed-rate mortgage makes good financial sense. Not surprisingly, the vast majority of mortgages originated today are fixed-rate. In fact, only about 5% of buyers are choosing adjustable-rate loans. That said, while a fixed-rate mortgage is the best choice for the majority of homebuyers, there are some circumstances where variable rates mortgage would be better. For example, if you expect to sell the house before the fixed-interest period ends and the rate starts to float, a variable mortgage could end up saving you thousands of dollars. Or, during periods of falling…

A rate lock means that you're guaranteed today's mortgage interest rate for some predetermined period, typically 30 to 60 days. If interest rates have been trending upward, it's generally a good idea to lock in your rate. While the prevailing mortgage rate doesn't usually make a big move in a month or two, it's certainly possible.

There are several different types of mortgages to choose from. It all depends on your down payment, credit report and employment status.

This depends on how much you want to stretch your budget. If you can afford the higher monthly payments, a 25-year mortgage usually comes with a better interest rate than a 30-year version. Not only will you pay off the house quicker, but you can save a tremendous amount of interest. On the other hand, a 30-year mortgage will cost less per month, allowing you to afford a bigger or nicer house, or one in a better location.

Your lender may ask for many different items, but in general, be prepared to show all of the following: Income verification (Last two years' tax returns, and your last two pay stubs) Drivers' license and Social Security card (or alternative ID) Bank statements Proof of funds to close (and an explanation of where they came from, if it's not obvious) If some or all of your down payment is coming from a gift, you will need  gift letter from the source of the funds that confirm they are gift, not a loan.

A pre-qualification is a basic review of your finances to determine if you would qualify for a mortgage. In general, a pre-qualification is based on unverified information you provide and does not include a credit check or any documentation and is therefore not a firm guarantee of a loan.

Unlike a pre-qualification, a pre-approval can be a highly useful tool in the homebuying process. It's essentially the same thing as applying for a mortgage, just without a specific home attached to it. As part of a pre-approval, a lender will check your credit, verify your income and employment, and commit to lending a certain amount of money. A pre-approval can show sellers that you're serious about buying a home, and that you're likely to be able to follow through on a bid, and close on their property.

Mortgages tend to take at least 30 days to originate, and many first-timers don't expect this much of a waiting period. The short answer is that a lot of things need to happen between you submitting your mortgage application and you taking ownership of your home. Just to name a few: You'll need to gather documentation for your lender (and they'll always come back and ask for more, believe me); you'll want to schedule and complete a home inspection; the seller may need time to complete repairs; and the loan needs to make its way through underwriting. It's a lengthy process.…

Depending on your situation, there are typically three or four parts of your mortgage payment: Principal: Repayment of your outstanding balance. Interest: Payment of the interest charged on the outstanding balance. Taxes: See question 12. One-twelfth of your expected annual property taxes will be included in your mortgage payment, and deposited into your escrow account. Insurance: This includes homeowner's insurance, as well as any other hazard insurances you're required to have, such as flood or windstorm. If you put less than 20% down on your loan, this can also include private mortgage insurance. Based on these four items, your mortgage payments are sometimes referred to as PITI.

Probably. Even with a fixed-rate loan, your payment is likely to change over time. The reason? Your property taxes and insurance expenses, upon which the escrow portion of your payment is based, tend to fluctuate. If they rise, it may be necessary for your lender to ask for a higher escrow payment.