New Hampshire Mortgage Frequently Asked Questions

There are so many questions and concerns when it comes to mortgage loans. We have seen it all and can help make things clearer enabling you to make the best decision for you. Below are some common questions, however, speaking with someone like Renee Duval, an experienced New Hampshire Mortgage Broker can be a great resource and answer all your questions! Book an appointment or contact us.

Pre-qualification vs Pre-approval - what's the difference?

A pre-qualification is just your mortgage adviser’s estimate of your ability to buy a home. It’s based on your credit score and some other self-reported details. A pre-qual may give you a good idea of which loan program fits you best, and maybe even how much you’ll qualify for. Click here for a no-hassle, no-obligation prequalification.

A pre-approval officially confirms how much you’re able to borrow. Your income and asset documents go through a more formal review. After getting pre-approved, you’re able to take a more serious look at buying a house. If you’re not able to get pre-approved, your adviser will be able to offer some helpful tips on raising your credit score, lowering your debt, or working through any other financial obstacles preventing you from buying a home.

Pre-qualifications and pre-approvals are completely free for borrowers at Bookend Lending.

What are the qualification requirements to get a mortgage?

Three main factors come into play when being approved for a mortgage:

Credit score. Each loan program has a minimum credit score requirement to qualify. Higher credit scores can allow you to qualify for lower interest rates, too.
Down payment. Some loan programs require you to make a down payment of a certain amount.
Debt-to-income ratio (DTI). Your debts should only make up a certain percentage of your income because you’re about to incur a large and important debt by purchasing a home.

What are the differences in home loan programs like FHA and a Conventional loan?

Below are home loan programs that homebuyers can choose from. We offer all of these home loan options, plus several more depending on your particular situation. Let’s take a quick look at what makes each unique. You can learn a lot more about each of these options by visiting our NH mortgage loan options page.

Conventional – Lower rates and fees for borrowers making a down payment with good credit
FHA – Popular with first-time homebuyers due to lower down payment requirements
USDA – Zero-down options for rural borrowers in small towns
VA – Competitive rates, zero-down options, and no private mortgage insurance (PMI) requirement for veterans, active service members, and their surviving spouses.
Reverse Mortgages – for those 62 and older looking to fully utilize their home equity. Also known as Home Equity Conversion Mortgages.

What credit score do I need to qualify for a mortgage?

Each loan program is unique and each situation is considered, however, you’ll want to have a credit score of at least 600 to qualify for a mortgage in New Hampshire. The higher your credit score the more you can borrow.

Your mortgage adviser will be able to provide you with the best personalized advice, but here are some basic pointers to ensuring you maintain a healthy credit score:

Never, ever miss a payment
Keep your credit utilization below 30%, if possible
Don’t close old accounts
Don’t open new accounts

Need help with your credit score? Talk with us and we can help guide you in a direction for your credit score to go up! The sooner the better since in some circumstances fixing your credit can take some time.

How much money do I need for a down payment?

Each loan program has it’s own requirements. There are loan options available that allow for 3.5% or even zero down. A 20% down payment will reduce your monthly payments and the total amount of interest you pay over the life of the loan, but it’s not required for all borrowers.

Having an independent mortgage broker like Bookend Lending gives you the most options in finding the right mortgage for you and your family. Contact us today to get started!

How do I figure out how much I can afford?

As a general rule, most homeowners should aim for a mortgage payment at or below 30% of their gross household income. Use our mortgage calculator for an estimate of your total monthly payment.

It’ll include principal, interest, taxes, and insurance. Your monthly payment may also include Homeowners Association (HOA) fees as well. HOA fees vary from community to community.

Book an appointment with a New Hampshire mortgage loan officer for the most accurate estimation of how much you can afford or fill out our pre-approval for a more solid understanding.

What kind of fees can I expect with a mortgage?

Lenders may have their fees structured or named differently from one another, but you should generally expect these:

Origination fee
Office admin fees
Document preparation fees
Application fee
Appraisal fee
Lender-required home inspections (roof, sewage, pest)
Credit report fee

After applying, you can ask your adviser for a sample closing sheet with fees included.

Should I start with a REALTOR or a Mortgage Lender first?

We recommend getting pre-approved with a mortgage lender first. Once you’re pre-approved for a mortgage, you’ll be able to shop with confidence. You’ll know exactly how much you’re able to purchase and not waste time looking at properties that ultimately won’t fit your budget.

Questions on how the mortgage process works? Take a look at our New Hampshire Mortgage Process page or Contact us today and find out how you can start your new chapter with confidence!

Mortgage Blog Post - NH edition

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