Frequently Asked Questions
What is the minimum credit score needed to qualify for a mortgage?
Most lenders require a credit score of at least 620 for conventional loans, but FHA loans may allow scores as low as 580. Higher scores often mean better rates - but I do have solutions for people to improve credit scores.
How much down payment do I need to buy a home?
Down payments vary by loan type. Conventional loans typically require 5% down although as a first time homebuyer 3% down is fine. FHA loans allow a standard down payment of 3.5% - but I do have FHA programs that require ZERO down!
Can I get a mortgage if I’m self-employed?
Of course. You’ll need to provide 2 years of tax returns, and a YTD profit/loss statement.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate based on self-reported info. Pre-approval involves a credit check and income verification, making it more reliable when house hunting. Whether its a conventional loan, FHA loan or a specialty product - when buying a home in Florida a pre-approval letter from a trusted mortgage lender is crucial to get an offer accepted.
What are closing costs and how much should I expect to pay?
In Florida - whether Miami Dade County, Broward County, Orange County, Duval or any other County, closing costs typically range from 2% to 5% of the home’s purchase price and include fees for appraisal, title, lender and more. These costs will be nearly identical regardless of your bank or lender.
Can I use gift funds for my down payment?
Yes, at Barry Hochberg Mortgage, we have many loan programs that allow gift funds from relatives. We will help you with a gift letter and the simplest way to document the transfer.
What is mortgage insurance and when is it required?
Mortgage insurance is required by all banks if your down payment is less than 20%. At Barry Hochberg Mortgage, we have six different M-I companies to use for comparing pricing and getting you the best rate.
How long does the mortgage approval process take?
On average in Florida, it takes 25 to 35 days, but it can be faster with organized documentation and responsive communication.
Can I buy a home with no money down?
Yes, VA and USDA loans offer zero-down options for eligible borrowers. As of Summer 2025, I also have access to zero down FHA loan programs!
What documents do I need to apply for a mortgage?
Common documents include pay stubs, W-2s, tax returns (for self-employed borrowers), bank statements, and ID.
What is the debt-to-income (DTI) ratio and why does it matter?
DTI compares your monthly debt payments to your income. Most banks I work in Florida require a DTI below 50%, though some programs allow higher.
Can I qualify for a mortgage with student loan debt?
Yes. Lenders consider your monthly student loan payments in your DTI. Income-driven repayment plans may help reduce your qualifying ratio - and there's an accounting for student loans in deferment.
What is a rate lock and should I get one?
A rate lock secures your interest rate for a set period (usually 30–45 days) to protect you from market fluctuations during the loan process.
How do interest rates affect my monthly mortgage payment?
Lower rates mean lower payments - and more efficient payments. Even a 0.5% change in rate can significantly impact your monthly cost and total interest paid.
Can I refinance my mortgage later to get a better rate?
Absolutely. Refinancing lets you replace your current loan with a new one—often to lower your rate, change terms, or tap into equity.