The best type of mortgage depends on your financial situation and goals. Common options include fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, and more. Your mortgage lender can help you determine which one aligns with your needs and financial situation.

• Pre-Qualification: This is an initial assessment based on your self-reported financial information. It gives you a general idea of how much you might be able to borrow.
• Pre-Approval: Pre-approval involves a thorough verification of your financial information, including credit checks. It provides a more accurate picture of the loan amount you can expect to secure. It's a stronger indication of your ability to obtain a mortgage.

The minimum down payment can vary depending on the type of mortgage and the lender. Conventional mortgages typically require a down payment of 3% to 20% of the home's purchase price. Government-backed loans like FHA and VA may have lower or even NO down payment requirements.

Closing costs are fees associated with finalizing the mortgage transaction. They can include appraisal fees, title insurance, lender fees, and more. The total amount varies but is usually around 2% to 5% of the loan amount. Your lender can provide an estimate of your specific closing costs.

• To improve your credit score, focus on paying bills on time, reducing credit card balances, and avoiding opening new credit accounts. Your lender can also provide specific advice tailored to your situation. It's essential to work on credit improvement well before applying for a mortgage.