Common questions, clear answers.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate of how much you may be able to borrow, based on self-reported information. Pre-approval is a deeper review where we verify your income, assets, and credit, and issue a conditional commitment letter—making your offers significantly stronger in competitive markets.
How much of a down payment do I need?
It depends on the loan program. Conventional loans often start at 3–5%, while FHA loans require as little as 3.5%. VA and USDA loans may offer zero-down options for eligible borrowers. We model every scenario to find the right balance for your budget and long-term goals.
What credit score is needed to qualify?
Many programs accept scores in the 580–620 range, though a higher score unlocks better rates and more options. We review your full financial picture—credit history, debt-to-income ratio, and reserves—so a lower score does not automatically disqualify you.
What are closing costs, and how much should I expect?
Closing costs include lender fees, title insurance, appraisal, taxes, and prepaid items. They typically range from 2–5% of the loan amount. We provide a detailed Loan Estimate within three days of application so there are no surprises at the closing table.
How long does the mortgage process take?
Most purchases close in 30–45 days from the date of contract. Refinances may move faster. The timeline depends on how quickly documentation is provided, appraisal scheduling, and any contingencies in the purchase agreement. We keep you informed at every milestone.
Should I choose a fixed-rate or adjustable-rate mortgage?
A fixed-rate mortgage offers stability—your principal and interest payment never change. An adjustable-rate mortgage (ARM) typically starts with a lower rate for a set period, then adjusts periodically. If you plan to stay in the home long-term, fixed is often the safer choice. If you expect to move or refinance within 5–7 years, an ARM may save you money.
What documents will I need to apply?
Generally: two years of tax returns and W-2s, recent pay stubs, two months of bank statements, a government-issued ID, and documentation of any other assets or debts. Self-employed borrowers may need profit-and-loss statements and business tax returns as well.
Can I get a mortgage if I am self-employed?
Yes. Self-employed borrowers often qualify using bank statements, profit-and-loss reports, or 1099 income instead of traditional W-2s. We work with several programs designed specifically for entrepreneurs, gig workers, and independent contractors.
What is PMI, and will I have to pay it?
Private Mortgage Insurance (PMI) protects the lender if you default. It is typically required on conventional loans when your down payment is less than 20%. Once you reach 20% equity, PMI can usually be removed. Some programs allow lower down payments without PMI.
Can I pay off my mortgage early?
Most loans allow early payoff, but some carry prepayment penalties. We review this with you upfront and help you choose a loan structure that aligns with your goals—whether that means paying extra principal monthly or making lump-sum payments when bonuses or tax refunds arrive.