Common Mortgage Questions Answered
Below you will find some of the most common mortgage questions and answers. This can help you understand some of the terminology in the mortgage process.
What types of mortgages do you offer?
We offer a wide range of mortgage options including conventional, FHA, VA, Non-QM, jumbo loans, and more. Our goal is to find the best fit for your specific financial needs.
How much can I borrow?
Your borrowing limit depends on several factors including your income, credit score, debts, and the type of mortgage. Contact us for a personalized mortgage assessment.
What documents do I need to apply for a mortgage?
Typically, you’ll need recent pay stubs, W-2s or tax returns, bank statements, and identification. Additional documents may be required based on your unique situation.
What is pre-approval, and why is it important?
Pre-approval is a preliminary review of your financial situation to determine the loan amount you qualify for. It helps you understand your budget and strengthens your offer when buying a home.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate of how much you might be able to borrow based on basic financial information. Pre-approval involves a more thorough review and is a conditional commitment to lend.
What are closing costs, and who typically pays them?
Closing costs are fees associated with finalizing your mortgage and include items like appraisal fees, title insurance, and taxes. Both buyers and sellers may negotiate who pays which costs.
What is mortgage insurance, and do I need it?
Mortgage insurance protects the lender in case you default on your loan. Depending on your loan type and down payment amount, you may be required to pay mortgage insurance.
What is the difference between a fixed-rate and adjustable-rate mortgage (ARM)?
A fixed-rate mortgage offers a stable interest rate and monthly payment throughout the loan term. An ARM initially offers a lower interest rate that may adjust periodically based on market conditions.
How long does the mortgage process take?
The timeline can vary based on factors like the type of loan, appraisal, and underwriting process. We have a team of in-house underwriters which helps speed up the process!
Can I refinance my current mortgage?
Refinancing allows you to replace your current mortgage with a new one, often to secure a lower interest rate, change loan terms, or access equity in your home. Reach out to us to learn more if you would benefit from refinancing.
How many states are you licensed in?
We are licensed in +27 states and counting! Visit our State Licensing page to learn more.
How much do I need for a down payment?
Down payments vary by loan type. Conventional loans often require 3-20%, while FHA loans allow as little as 3.5%. Our team of mortgage loan originators can help you understand how much you need for a down payment.
What is the debt-to-income (DTI) ratio, and why does it matter?
Your DTI ratio compares your monthly debt payments to your gross income. Lenders use it to assess your ability to repay a loan. Lower DTI ratios generally improve approval chances.
Can I get a mortgage if I’m self-employed?
Yes! Self-employed borrowers may need to provide additional documentation, such as tax returns and profit/loss statements, to verify income. Reach out to us to learn more about our Non-QM programs.
