Frequently Asked Questions

What should I avoid doing before closing on a home?

Avoid large purchases, changing jobs, opening new credit accounts, or making significant financial changes that could affect your loan approval.

What are the benefits of refinancing my mortgage?

Refinancing can lower your interest rate, reduce monthly payments, shorten your loan term, or allow you to access home equity.

Can I pay off my mortgage early?

Yes!  Most mortgage loans allow early payoff without penalties, but it’s essential to check your loan terms to be sure.

What is private mortgage insurance (PMI)?

PMI is required for conventional loans with a down payment of less than 20%, and protects the lender if a borrower defaults on their loan.

What documents are needed to apply for a mortgage?

Common documents include pay stubs, bank statements, tax returns and/or W2 statements, and identification cards.

How is my mortgage interest rate determined?

Interest rates are based on factors such as your credit score, loan type, loan term, down payment, and current market conditions.

What is the difference between pre-qualification and pre-approval?

Pre-qualification is an initial estimate of how much you can borrow, while pre-approval involves a more detailed evaluation of your finances and credit.

What are closing costs, and how much are they?

Closing costs include fees for appraisal, title search, insurance, and other expenses.  They typically range from 2% to 5% of the loan amount.

How much down payment is needed?

Down payments can range from 3% to 20% of the home’s purchase price, depending on the loan type.

What credit score do I need to qualify for a mortgage?

Most conventional loans require a minimum credit score of 620, while government-backed loans (VA and FHA) may have lower requirements.

How long does the mortgage approval process take?

The process typically takes less than 30 days, but can vary based on the lender and complexity of your financial situation.