Frequently Asked Questions

How do I know if I’m ready to buy a home?

Beyond having savings for a down payment, it helps to have stable income, manageable debt, and a plan to stay in the home for at least a few years so you have time to build equity and recover closing costs. If you’re not sure, we’re happy to walk through your specific situation with you.

What’s the difference between pre-qualification and pre-approval?

A pre-qualification is a quicker, informal review - typically done directly with a loan officer - that gives you an early estimate of what you might be able to borrow. A pre-approval goes further, with your income, assets, and credit verified by an underwriter, resulting in a conditional commitment to a specific loan amount.

How long does the mortgage process take?

It varies, but a typical purchase closes in about 30 to 45 days from an accepted offer, depending on the loan program, how quickly documentation is provided, and how busy underwriting is at the time.

What credit score do I need to qualify?

It depends on the loan program. Conventional loans often look for a score in the 620-640 range, while government-backed programs like FHA can be more flexible. We can help you understand where you stand and what programs might fit.

How much down payment do I actually need?

Less than you might think. Conventional loans can go as low as 3% for qualifying buyers, FHA loans typically require 3.5%, and VA loans can offer 0% down for eligible service members and veterans. 20% down is common but not required.

What are closing costs, and how much should I expect to pay?

Closing costs are fees paid to third parties to complete your purchase or refinance - things like appraisal fees, title insurance, and loan origination fees. They typically run 2% to 6% of the loan amount, though this varies by transaction.

What’s the difference between my interest rate and my APR?

Your interest rate is what’s used to calculate your monthly principal and interest payment. Your APR reflects the yearly cost of the loan as a percentage, including the interest rate plus certain fees - giving you a fuller picture of the loan’s overall cost.

Do I need 20% down to avoid mortgage insurance?

On a conventional loan, yes - putting down less than 20% typically means paying mortgage insurance until you build enough equity. Some loan programs handle mortgage insurance differently, so it’s worth discussing your specific program with us.

What’s the difference between a fixed-rate and adjustable-rate mortgage?

A fixed-rate mortgage keeps the same interest rate for the entire loan term, so your principal and interest payment never changes. An adjustable-rate mortgage (ARM) starts with a fixed rate for an initial period, then adjusts periodically based on market conditions.

Which loan program is right for me?

It depends on your credit profile, down payment, income situation, and goals. We offer 20+ programs, from Conventional and FHA to specialty options - the best way to know what fits is to talk it through with us.

Can I get a mortgage if I’m self-employed?

Yes. Self-employed borrowers can qualify using tax returns and profit-and-loss statements, or in some cases through bank statement loan programs that qualify you based on your bank deposits instead of traditional income documentation.

When does it make sense to refinance?

Common reasons include lowering your interest rate, shortening your loan term, removing mortgage insurance, or tapping into your home’s equity. Whether it makes sense for you depends on your current rate, how long you plan to stay in the home, and your closing costs.

Can I refinance to remove mortgage insurance?

Often, yes - once you’ve built enough equity, refinancing into a conventional loan can eliminate mortgage insurance, especially if you originally had an FHA loan with insurance that doesn’t automatically cancel.

How soon after buying can I refinance?

This varies by loan program and lender - some have seasoning requirements of six months or more before a cash-out refinance, while rate-and-term refinances may have more flexibility. We can walk you through the specifics for your situation.

What documents will I need to provide?

Generally: recent pay stubs, W-2s and tax returns from the past two years, bank statements from the last two months, and a list of your current debts. Your specific list may vary depending on your loan program and financial situation.

Why do lenders ask for so much paperwork?

Lenders are required to verify your income, assets, credit, and the property itself before approving a loan. It can feel like a lot, but it’s standard for every borrower, and providing documents promptly is the best way to keep things moving.

What happens during underwriting?

An underwriter reviews your full application - income, assets, credit, and the property - to confirm everything meets the loan program’s guidelines. You may be asked for additional documentation during this stage.

What is escrow, and how does it work?

An escrow account, managed by your lender, holds funds for property taxes and homeowners insurance, which are paid on your behalf as they come due. A portion of your monthly payment goes into this account.