The Mortgage Questions Everyone Is Afraid to Ask (But Shouldn’t Be)

If there’s one thing we wish every homebuyer knew, it’s this: There is no such thing as a stupid mortgage question.

Seriously.

We talk to home buyers every single day, and we’ve heard just about every question imaginable. We know the homebuying process isn’t something that is necessarily taught in school. That’s why we’re here! 

We believe buying a home should feel exciting and not intimidating. Our job isn’t to judge what you know. Our job is to help you understand the process, answer your questions, and make sure you feel confident every step of the way.

So let’s tackle a few of the questions people are often afraid to ask.

“Do I Really Need 20% Down?”

This is probably the biggest mortgage myth that still exists today.

No, you do not need a 20% down payment to buy a home.

Depending on the loan program, you may qualify with far less. VA loans offer qualified veterans and active-duty military members the opportunity to purchase with no down payment. USDA loans can also require no down payment for eligible properties and borrowers. Many conventional loans allow as little as 3% down.

Pair those loan options with the Iowa Finance Authority first time buyer programs or VA grant (that only participating lenders like us can provide),  and you’re in an even better position to buy!

There’s nothing stopping you from putting 20% down if that is what you want to do, but it’s far from the only path to homeownership. The best option depends entirely on your goals and financial situation.

That’s why it’s worth having a conversation before assuming you’re not ready.

“What Credit Score Do I Actually Need?”

Most people think one number automatically determines whether they can buy a home, but that’s not how it works. It can vary between loan programs, and even a few point differences can change your situation. 

While your credit score does matter, it’s only one piece of the puzzle. We also look at your income, employment history, monthly debts, available assets, and the overall strength of your financial picture.

We’ve had conversations with people who assumed their score wasn’t good enough, only to discover they were closer to buying than they realized. We’ve also helped buyers create a plan when they weren’t quite ready yet.

The important thing is knowing where you stand instead of guessing.

“Can Someone Help Me With My Down Payment?”

Absolutely.

Many buyers receive gift funds from parents, grandparents, or other eligible family members to help with their down payment or closing costs. There are guidelines that need to be followed so we can document the gift properly, but gift funds are very common and can be an excellent resource for first-time buyers.

There are also down payment assistance programs available that many buyers don’t even realize exist. We are a leading lender for the programs through Iowa Finance Authority and are always excited to help buyers determine their qualification for the programs.

The only way to know what’s available to you is to ask.

“How Much Money Do I Actually Need?”

This question usually comes right after people learn they don’t need 20% down.

The honest answer is—it depends.

Every purchase is different. Your required cash could include your down payment, closing costs, prepaid taxes and insurance, or it may be reduced through seller concessions, gift funds, or assistance programs. 

It also depends what type of house you need or desire, compared to your income. 

Rather than relying on online calculators or advice from friends who bought a house five years ago, we’ll walk through your numbers with you and show you exactly what to expect based on your situation.

The best thing about starting the process with us is that afterwards, there will be no “guessing” or “surprises.” We’re VERY thorough with our pre-approvals. 

“How Long Does Mortgage Approval Take?”

Another common misconception is that getting pre-approved takes weeks.

In reality, if you provide your documentation promptly, many pre-approvals can happen much faster than people expect (within the day.) We pump them out all the time, even on weekends!

The key is working with a lender who communicates clearly, explains what documents are needed, and keeps the process moving. 

At RMN, we believe a strong pre-approval is worth doing right. That means reviewing your information thoroughly so you can shop for a home with confidence instead of wondering if there will be surprises later.

Ask the Question.

We mean it.

Whether you’re wondering if your student loans matter, if changing jobs affects your approval, whether gift funds are okay, or if you’re “too early” to talk to a lender, we want you to ask!

Buying a home is one of the biggest financial decisions you’ll ever make. You shouldn’t have to navigate it while worrying whether your questions sound silly.

We’re a judgment-free resource. We love educating buyers, explaining the “why” behind the process, and helping people feel confident from their very first conversation. We put a lot of time and effort into making sure accurate information is available online and on social media. It’s important to us!

So if you’ve been sitting on a mortgage question because you’re afraid to ask it…

This is your sign.

Reach out to us. We’ll answer your questions with honesty, clarity, and absolutely zero judgment.