Frequently Asked Questions

Prequalification is a preliminary estimate of your qualification based on the information you share. Preapproval, on the other hand, verifies your credit, income, and assets, producing a lender letter that you can use when making an offer.
Why it matters: A verified preapproval (often with a hard or soft credit check and brief document review) signals to sellers that you’re serious and helps you shop with a clear price range. A prequalification is helpful early on, but it’s not a commitment to lend. Connect with a local mortgage consultant to get a fast, verified preapproval before you tour homes.

The best loan is the one that fits your goals—how much cash you want to bring to closing, the monthly payment you’re comfortable with, and where you’re buying. Here’s how each option tends to shine:

• Conventional Loan — best for long-term flexibility and low costs
  Ideal for those with a steady income seeking the lowest total cost over time. You can often remove mortgage insurance later, and you’ll have wide flexibility in property types and options—useful in competitive markets.
• FHA Loan — best for a smoother path to approval
  Designed to help buyers who are building credit or have a shorter savings history. Frequently delivers approachable monthly payments and more flexible approval standards—ideal for many first-time buyers who want a clear, steady plan to homeownership.
• VA Loan (for eligible service members/veterans) best overall benefit for those who served
  A powerful option with $0 down and no monthly mortgage insurance. Often, one of the most affordable ways to buy for eligible borrowers is a strong choice when you want maximum buying power with minimal upfront cash. It also offers the benefit of the lowest interest rates and monthly payments.
• USDA Loan (eligible rural/suburban areas) — best for affordability outside city centers
  Built to expand access to homeownership in designated areas—often with $0 down. A great match if you’re looking in smaller towns or suburban pockets and want to keep cash at closing as low as possible.
• Down Payment Assistance / First‑Time Homebuyer Loan — best for minimal cash to close
  Programs that offer grants or second-loan assistance can help reduce or cover part of your down payment and closing costs, allowing you to get the keys with very little upfront money —often as little as $0-$1,500 is needed. These can often be paired with FHA or Conventional financing. Availability, income/price limits, education requirements, and funds vary by location.
• Next step: Tell us your price range and how long you expect to keep the home. A local mortgage consultant will help you to compare side-by-side options (cash to close, monthly payment, and total cost) so you can choose with confidence.

Each loan program has its own minimum score requirements. Though some lenders have more strict requirements, here at Fairway, we follow the same requirements as set for each loan program. As program baselines:

• FHA: Minimum credit score of 500. It is highly recommended to achieve a score of 580 or higher to access the most approval opportunities. Scores below 580 may require additional down payment.
• Conventional: 620+
• VA: The VA does not set a minimum credit score but rather relies on each lender to set their own requirements or make sound judgments on each application based on the general creditworthiness of the veteran/applicant.
• USDA: no single minimum; many lenders target 640 for required approval standards.

Higher scores can unlock better pricing. Start with a preapproval review, and we’ll show you clear next steps.

We are grateful to be able to offer a full spectrum of down payment assistance options to our buyers, no matter what state you may be purchasing in. Each state has its own unique products available, and many of our products are available nationwide. Most programs offer down payment assistance, resulting in as little as $0 total down payment required when set up correctly. Each program has its own qualifying requirements, such as income limits, homebuyer education, debt-to-income ratios, minimum buyer contribution, and more.

Looking in our home state of Wyoming? The Wyoming Community Development Authority (WCDA) offers DPA up to $15,000 (with program-specific terms) that can help with down payment, closing costs, and prepaids, with a bottom line requirement of a minimum of $1,500 paid by you as the buyer of the home

Next step: Ask one of our local mortgage consultants to confirm your eligibility, review the terms of the down payment assistance available to you, and guide you into the program that best suits your scenario.

The majority of the funds needed to purchase a home typically include (1) the down payment (0%-5% minimums depending on loan type), (2) closing costs such as appraisal fees, title fees, and lender fees, and (3) prepaid items such as homeowners' insurance, property taxes, and daily interest. Closing costs and prepaid items combined tend to average 2%-3% of the purchase price, which would be paid in addition to the down payment.

Why it matters: Seeing a clear, personalized estimate turns “Can I afford this?” into “Here’s my plan.”
• Other typical items: home inspections, moving costs, utility deposits
• Ways to lower cash to close: down payment assistance, seller credits, and lender credits—when structured correctly—plus gift funds where allowed.

Next step: We’ll build a simple cash‑to‑close worksheet for your price point, location, and loan program so you know exactly what to expect.

The documents required for full approval of your mortgage application will depend on the specific circumstances of your financial situation. Most buyers will need

• Recent pay stubs
• W‑2s and/or tax returns (2 most recent years)
• Bank/asset statements (2 most recent months)

Specific scenarios, such as self-employed buyers, buyers using gift funds for down payment, or scenarios with major recent credit changes, may require additional documentation.

An average purchase transaction closes in about 30–45 days after your offer is accepted, depending on appraisal, title, and underwriting. With our expert teams, technology, and relationships amongst our teams, we are able to frequently close purchase transactions in as little as 8-10 days, which is the shortest allowed time based on federal regulations. Getting preapproved early can speed up the process once you find a home and secure a purchase contract.

Why this matters: If you’re in a competitive market, being fully preapproved (and responsive to document requests) helps you move quickly. Understanding your own desires for timelines, including due diligence periods and moving dates, can help you to be strategic in your offers and have a better homebuying process and experience. Our local mortgage experts can help you create a timeline and execute your purchase with as little stress as possible.

Closing costs are the one-time fees to process and finalize your loan—plus prepaids for taxes, homeowners' insurance, and initial escrow funding. Total costs for closing fees and prepaid items typically amount to 2%-3% of the purchase price on average. Buyers are typically responsible for these costs, but utilizing seller and lender credits can help.

Why it matters: Structuring credits up front can lower your cash to close without surprises.
- Common items: lender/underwriting fees, appraisal, title/settlement, recording, transfer/transaction taxes where applicable, and prepaid interest.
- Credits: seller credits are negotiated in your offer; lender credits may be available in exchange for a slightly higher rate—program limits apply.

Next step: We’ll provide you with a clear estimate for your scenario and show exactly how credits or assistance can reduce out-of-pocket costs.

Start with the best overall strategy for your goals—not just the lowest headline rate. The best thing you can do is to have a skilled advisor that can help you assess available options, programs, and investors to develop the best strategy for your unique goals and desired outcomes and then compare available options to save you the most money.

Why it matters: A “cheap” rate can cost more if it requires extra points, higher mortgage insurance, or more cash at closing. What really counts is total net long-term cost, monthly comfort, and flexibility over your time horizon.

How our team delivers value (beyond rate):
• Shop broadly, compare clearly. We price your scenario across a wide range of investors and programs (Conventional, FHA, VA, USDA, and DPA pairings) to find the best result, not just the lowest quote.
• Model your time horizon. If you expect to move or refinance in a few years, paying points for a slightly lower rate may not make sense. We show break-even in plain numbers.
• Balance cash‑to‑close and payment. We optimize credits vs. points, structure temporary or permanent buydowns (when available), and use seller/lender credits strategically to fit your budget.
• Right‑fit mortgage insurance strategy. We compare borrower-paid, lender-paid, and split‑premium options and map your path to removing MI when possible.
• Locking with purpose. We monitor markets daily and help you lock with confidence (and consider float‑down features where available) so you’re protected against rate swings.
• Plan the exit. We build a refinance roadmap and show triggers that might make a future refi smart—so today’s choice aligns with tomorrow’s goals.

Next step: Ask your local Fairway mortgage consultant for a Best Rate vs. Best Result side-by-side—cash to close, monthly payment, and true cost—so you can choose with confidence.

A refinance is simply taking out a new loan that replaces your current mortgage with a new one to lower your payment, change your term, remove mortgage insurance, or access equity (cash‑out). Reviewing and understanding all of the terms, most importantly the costs and benefits, associated with refinancing are critical to making sure that you are making a sound decision for your long-term financial success.
Why it matters: The right refinance can improve monthly cash flow or help you reach long-term goals faster—what counts is your break-even point, the point at which the benefits of the refinance outweigh the costs of the refinance.
How it works: quick goal review → rate and cost estimate → application/docs → appraisal/title (if needed) → close; your old loan is paid off and you start fresh.
Options vary: certain programs offer streamlined paths for eligible borrowers, where an appraisal and income verification may not be necessary. Rate and term refinances are available to simply reduce your rate and monthly payment, while cash-out refinances allow you access to the equity that you have in your home.

How much does it cost? A refinance typically comes with fees that can range from $0 (no-cost refinance) to up to 5% of the loan amount. Understanding your costs is a critical part of assessing the benefits and drawbacks of a refinance.

Next step: Share your current mortgage statement and goals—we’ll analyze the numbers and recommend the best path forward.