F.A.Qs

The first step is to assess your financial situation and determine your budget. From there, you can get pre-approved for a loan, which gives you a clear idea of how much you can borrow and strengthens your position as a buyer.

Typically, you’ll need proof of income, tax returns, bank statements, credit history, and identification. If you’re self-employed, additional documentation may be required.

Your credit score plays a significant role in determining your eligibility and interest rates. A higher score can lead to better loan terms, while a lower score may limit your options or result in higher rates.

Pre-qualification is an initial estimate of how much you might be able to borrow, based on basic financial information. Pre-approval is a more detailed process that involves verifying your financial data and provides a specific loan amount you’re approved for.

A down payment is the upfront amount you pay toward the purchase of a home. The required amount varies based on the loan type, but it typically ranges from 3% to 20% of the home’s price.

Yes, there are various programs designed to assist first-time buyers, including down payment assistance, grants, and loans with lower interest rates. I can help you explore options that fit your needs.

A fixed-rate mortgage has a consistent interest rate throughout the loan term, while an adjustable-rate mortgage (ARM) starts with a lower rate that can change periodically based on market conditions.

The timeline varies, but it typically takes 30 to 45 days from application to closing. Factors like documentation, appraisal, and underwriting can affect the duration. Please see the Mortgage Education Section for a more specific timeline broken down by events and dates. CLICK HERE

Refinancing lets you replace your current loan with a new one, offering opportunities to lower your interest rate, adjust your loan term, or tap into your home’s equity. With rising high-interest credit card debt, a Cash-Out Refinance can be a smart move—even if the new mortgage rate is higher. By consolidating your debt, you can lower overall interest costs, then pay off your mortgage faster with the newly freed up funds, and then save significant time and interest ($$$) in the long run. These are the things we need to discuss and see when the timing is right for you. 

LTV compares the amount of your loan to the appraised value of the property as a percentage of 100%. For example, if you’re borrowing $200,000 for a home valued at $250,000, your LTV is 80%. A lower LTV usually means better loan terms and lower interest rates, while a higher LTV may require private mortgage insurance (PMI).

PMI is insurance required for loans with a down payment less than 20%. It protects the lender in case of default and is typically included in your monthly payment.

Mortgage insurance protects the lender if you default on the loan. For conventional loans, it’s typically required if your down payment is less than 20%. There are options like private mortgage insurance (PMI) for conventional loans and mortgage insurance premiums (MIP) for FHA loans. Some programs may allow you to cancel PMI once you reach a certain level of equity. A lot of this is based on LTV from question 10 above.

The interest rate is the cost of borrowing the loan amount, expressed as a percentage. APR (Annual Percentage Rate), on the other hand, includes the interest rate plus other fees and costs associated with the loan, like origination fees, points, and closing costs. APR gives a more comprehensive picture of the loan’s overall cost.

The Loan Estimate (LE) is a document you receive early in the mortgage process that outlines the estimated costs of your loan, such as interest rate, monthly payment, and closing costs. The Closing Disclosure (CD) is provided shortly before closing and reflects the final terms of your loan. The CD allows you to compare it with the LE to ensure everything matches up before signing.

Seller concessions are agreements where the seller covers certain costs for the buyer, like closing costs or repairs. These can help reduce your upfront expenses, but there are limits based on your loan type and LTV. I can help you navigate these options during negotiations as these can make or break an entire deal.

Mortgage points, or discount points, are fees you pay upfront to reduce your loan’s interest rate. Each point typically costs 1% of your loan amount and lowers your interest rate by about 0.25%. Whether buying points is worth it depends on factors like how long you plan to stay in the home and your financial goals. I can help you evaluate if it’s a good option for your situation AND there is even a calculator for that! CLICK HERE

DTI compares your monthly debt payments to your gross income. It’s a key factor lenders use to determine your borrowing capacity. For example, if your monthly debts total $2,000 and your income is $6,000, your DTI is 33%. Lower DTIs generally make you a more attractive borrower

Underwriting is the process where the lender verifies your financial details, like income, assets, credit history, and the property value, to assess risk. It’s the final step before your loan is approved, and while it can seem daunting, I’ll help ensure your application is as smooth as possible.

Yes, you can lock your interest rate for a specific period during the loan process, protecting you from potential rate increases. Locking can be a smart move in a rising rate environment. However, if rates drop after locking, you may need a “float-down” option or re-lock fee to access lower rates. I can advise you on the best approach.

Conforming loans meet guidelines set by Fannie Mae and Freddie Mac, including loan limits and credit requirements. Non-conforming loans, like jumbo loans, exceed these limits or have unique requirements. I’ll help determine which type fits your needs.

A VA loan is a government-backed mortgage designed for eligible veterans, active-duty service members, and certain military spouses. These loans typically require no down payment, no private mortgage insurance (PMI), and offer competitive interest rates. To qualify, you’ll need a Certificate of Eligibility (COE), which verifies your military service status.

VA loans offer numerous advantages, including:

• No down payment required (in most cases).

• No PMI, which lowers your monthly payments.

• Flexible credit requirements compared to other loan types.

• Limitations on fees that lenders can charge with waivers in certain situations for even the Funding Fee.

• Competitive interest rates and refinancing options.

An FHA loan is a government-backed mortgage designed to help first-time buyers or those with lower credit scores qualify for financing. FHA loans allow smaller down payments (as low as 3.5%) and have more lenient credit requirements. They’re a great option if you need a more affordable path to homeownership.

While FHA loans are flexible, they come with certain costs, including mortgage insurance premiums (MIP). These include both an upfront fee and ongoing monthly payments, regardless of your down payment amount. FHA loans also have loan limits that vary by location, which could impact higher-priced properties.

Conventional loans are not insured or guaranteed by the government, making them a popular choice for borrowers with stronger credit profiles. They typically offer lower interest rates and higher loan limits, but they often require larger down payments (generally 5%–20%) and private mortgage insurance (PMI) if your down payment is under 20%.

The choice depends on your financial situation, eligibility, and long-term goals. VA loans are ideal for veterans seeking no-down-payment options. FHA loans benefit first-time buyers with lower credit scores, while Conventional loans are suited for borrowers with strong credit and higher down payments. I can help evaluate your unique circumstances to guide your decision

• Conventional Loans typically require a credit score of 620 or higher, though better scores lead to more favorable terms.

• FHA Loans are more forgiving, with a minimum score of 580 for a 3.5% down payment, or as low as 500 with a 10% down payment.

• VA Loans do not have specific credit score requirements, but lenders often look for a score of around 600 or higher.

A title insurance policy safeguards lenders from financial losses due to title errors or disputes. However, for homebuyers, a separate policy—known as owner's coverage—offers similar protection for their ownership rights. Mortgage lenders require lender's title insurance for an amount equivalent to the loan, and this coverage remains effective until the loan is fully repaid. Like mortgage insurance, the title insurance premium is typically paid by the borrower at the time of closing.