FAQ

Why should I work with a mortgage broker?

One Application. More Choices. Less Stress.

A mortgage broker works with multiple lenders to help compare loan options, interest rates, and programs, making it easier to find financing that fits your goals.

What Can I Do to Improve My Credit Score?

Here are a few ways to strengthen your credit:

Make all payments on time.
Pay down existing credit card balances.
Keep credit utilization low.
Avoid opening new credit accounts before buying a home.
Don't close older credit accounts unless necessary.
Review your credit reports for errors and dispute any inaccuracies.

Even small improvements can make a difference when applying for a mortgage.

What Are Mortgage Points?

Mortgage points, also called discount points, are optional fees you can pay upfront to reduce your interest rate. Generally, one point costs 1% of your loan amount. Paying points may save money over time if you plan to stay in your home for several years.

When Should I Refinance?

Refinancing may make sense if you're looking to lower your monthly payment, reduce your interest rate, shorten your loan term, remove eligible mortgage insurance, or access your home's equity for other financial goals. Every homeowner's situation is different, so it's important to compare the costs and potential savings before refinancing.

When Should I Refinance?

Refinancing may make sense if you're looking to lower your monthly payment, reduce your interest rate, shorten your loan term, remove eligible mortgage insurance, or access your home's equity for other financial goals. Every homeowner's situation is different, so it's important to compare the costs and potential savings before refinancing.

How Is My Credit Judged by Lenders?

Lenders evaluate several aspects of your credit profile, including:

Your credit score
Payment history
Outstanding debt
Credit utilization
Length of credit history
Types of credit accounts
Recent credit inquiries

A strong credit history may help you qualify for better loan terms and interest rates.

Your Credit Score Matters.

Most lenders use FICO® Scores, which typically range from 300 to 850. In general, a higher score may help you qualify for better loan options and interest rates.Before applying for a mortgage, it's a good idea to review your credit report for accuracy.

You're entitled to one free credit report every 12 months from each of the three major credit bureaus through www.AnnualCreditReport.com.

Please note that your free report may not include your credit score.

Credit Bureau Contact Information:Equifax(800) 685-1111Experian(888) 397-3742TransUnion(800) 916-8800

Reviewing your credit before applying can help you identify and correct any errors that could affect your mortgage application.

What Happens at Closing?

Closing is the final step in the home-buying process.

During closing, you'll:

Review and sign your loan documents.
Pay your down payment and any closing costs.
Finalize the mortgage.
Receive ownership of the property once the transaction is recorded.
After closing is complete, you'll receive the keys to your new home.

What Is an ARM?

An Adjustable-Rate Mortgage (ARM) is a loan that starts with a fixed interest rate for a set period of time, after which the interest rate can adjust periodically based on market conditions. ARMs may offer lower initial payments than fixed-rate mortgages, but future payments can increase or decrease depending on how rates change.

What Is an Appraisal?

An appraisal is a professional evaluation of a home's market value completed by a licensed appraiser. Lenders use the appraisal to help ensure the property's value supports the loan amount.

What Does It Mean to Lock My Interest Rate?

A rate lock is an agreement with your lender that secures your interest rate for a specified period while your loan is being processed. Locking your rate helps protect you if market interest rates increase before your loan closes.

What Is PMI (Private Mortgage Insurance)?

Private Mortgage Insurance (PMI) is typically required on many conventional loans when the down payment is less than 20% of the home's purchase price. PMI protects the lender—not the borrower—in the event of default. Depending on your loan and equity, PMI may be removable once certain requirements are met.

How much do I need for a down payment?

Many buyers are surprised to learn that you don't always need 20% down. Depending on the loan program and your qualifications, you may be eligible for a much lower down payment.

Should I get pre-approved before looking at homes?

Yes. A pre-approval gives you a clear understanding of your budget and shows sellers you're a serious buyer, which can strengthen your offer.

What credit score do I need to buy a home?

The required credit score varies by loan program and lender. While higher scores may help you qualify for better terms, there are options available for buyers with a range of credit profiles.

How much house can I afford?

Affordability depends on your income, monthly debts, savings, and overall financial goals—not just the amount you qualify to borrow.

What are closing costs?

Closing costs are expenses paid at the time of purchase that may include lender fees, title services, appraisal fees, prepaid taxes, homeowners insurance, and other transaction-related costs.

What's the difference between pre-qualified and pre-approved?

Pre-qualification is an initial estimate based on information you provide. Pre-approval is a more in-depth review of your finances and typically carries more weight with sellers.

How long does the mortgage process take?

While timelines vary, many home loans close within 30 to 45 days, depending on the loan type and how quickly documentation is provided.

Can I buy a home if I'm self-employed?

Yes. Self-employed borrowers can qualify for a mortgage, although lenders may require additional documentation to verify income.

Should I pay off debt before buying?

Not always. The best strategy depends on your financial situation. Sometimes paying down debt can improve your borrowing profile, while other times it's better to preserve savings.

What Documents Do I Need to Prepare for My Mortgage Application?

Having your documents ready can help make the loan process smoother and faster. Depending on your situation, you may be asked to provide:

Identification

Government-issued photo ID (Driver's License or Passport)
Social Security Number or Social Security card (if requested)

Income

VerificationRecent pay stubs (typically the most recent 30 days)
W-2 forms from the past two yearsFederal tax returns from the past two years (if applicable)
Employment Information
Two-year employment history
Employer contact information
Written explanation for any employment gaps during the past two years

Asset

VerificationBank statements (typically the most recent two months)
Proof of funds for your down payment and closing costs
Documentation for any large deposits, if requested

Purchase Documents

Fully executed purchase contract (if you've already found a home)

Additional Income (if applicable)

VA disability award letter
Social Security award letter
Pension award letter
Disability income documentation
Court documentation for alimony or child support (if you want that income considered for qualification)

Self-Employment or Rental Income (if applicable)

Business tax returns
Personal tax returns
Profit and Loss (P&L) statement
Year-to-date balance sheet (if applicable)
Rental property income documentation
Current lease agreements (if applicable)

Debt Documentation (if applicable)

Documentation for existing loans or debt obligations
Bankruptcy, foreclosure, or divorce documents (if applicable)

Gift Funds (if applicable)

If a family member or other eligible donor is helping with your down payment or closing costs, you may need:

A signed gift letter
Documentation showing the transfer of funds
Verification of the donor's ability to provide the gift (depending on loan requirements)