Mortgage Nerd Blog

Understanding Down Payments Today The old belief that you need 20 percent down is outdated. Most buyers put far less down. Average Down Payments First-time buyers: around 6 percent Repeat buyers: around 14 percent FHA: 3.5 percent Conventional: 3–5 percent minimum VA: 0 percent What Matters More Than Down Payment Size A stable emergency savings fund A monthly payment you feel comfortable with Avoiding draining all your savings Understanding closing costs More down can lower y

Minimum Credit Scores You can buy a home with a lower score than many people expect. Conventional:  620+ FHA:  580+ (sometimes 500–579 with higher down payment) VA:  No official minimum, but most lenders want 580–600+ USDA:  Typically around 620 How Your Score Impacts Your Loan Better scores qualify for better rates Better scores reduce mortgage insurance Better scores offer more loan options Quick Ways to Improve Your Score Pay credit cards down below 30 percent Avoid openin

The Right Timing Depends on You People often reconsider buying when mortgage rates change. The truth is that the best time to buy depends more on your life than the market. Buy Now If You want stability instead of rent increases You're tired of missing out on equity You’ve found a neighborhood you love Your payment fits comfortably Wait If You have unstable income You’re planning a major life change You need time to save or improve credit What the Market Shows Historically, b

The Truth About Online Rate Quotes Short answer: rarely. Online rate quotes are usually designed to collect leads, not give precise numbers. What Affects Your Real Rate Credit score Loan type Down payment Debt-to-income ratio Property type Occupancy (primary, second home, investment) Market movement (rates can change several times daily) Why Online Rates Look Lower They often assume: Excellent credit Large down payment Single-family home No debt Discount points paid upfront M

Comparing More Than Rates Most buyers assume comparing lenders means comparing rates. While important, the biggest differences often show up in areas you won’t see on a rate sheet. What to Look For 1. Accuracy of the Quote Is the rate real, or is it simply a marketing teaser? 2. Fees and Transparency Lower fees aren’t always better if surprises appear later. 3. Communication Do they respond quickly? Do they explain things in plain English? 4. Local Knowledge Dallas contracts

Understanding Affordability Most buyers get stuck between “the payment I want” and “the payment I qualify for.” Your true comfort zone usually lands somewhere between the two. The Simple Affordability Formula Aim to keep your total monthly housing cost — mortgage, taxes, insurance, and HOA — at or below 30–33 percent of your gross monthly income . Factors That Affect Affordability Down payment:  More down equals a lower monthly payment. Interest rate:  Even a 0.25 percent cha

Understanding Your Mortgage Options Choosing the right mortgage doesn’t have to feel confusing. The best loan for you depends on three core factors: your finances, your future plans, and how long you expect to stay in the home. Below is a simplified breakdown of common loan types and who they typically benefit. Conventional Loan Best for:  Buyers with strong credit, steady income, and at least 3–5 percent down. Why it works:  Lower long-term costs and the ability to remove PM