Answers to Common Mortgage Questions.
Clear, straightforward answers to help you feel confident as you move through the homebuying process.
Buying a home comes with a lot of questions - especially if it's your first time. This page covers the most common questions we hear so you can move forward with more clarity and less stress.
Most loan programs require a minimum credit score between 580- 620. Higher scores can help you qualify for better rates, but lenders also look at income, debt, savings, and overall financial history - not just your score.
It depends on the loan type:
- Conventional: as low as 3% down
- FHA: 3.5% down
- VA & USDA: 0% down for eligible borrowers
Note: A larger down payment can reduce your monthly payment, but it's not required to buy a home.
- Pre-qualification: quick estimate based on self-reported info.
- Pre-approval: verified review of income, credit, and assets
Note: A pre-approval letter is stronger and shows sellers you're a serious buyer.
Your rate is based on market conditions plus personal factors like credit score, loan type, and down payment. Rates can be fixed (stay the same) or adjustable (change over time). Even a small rate difference can significantly impact your monthly payment.
Most payments include:
- Principal (loan balance)
- Interest
- Property taxes
- Homeowners insurance
- Mortgage insurance (if required)
Note: This is often called PITI.
Mortgage insurance protects the lender if you default. You may need it if your down payment is less than 20% on a conventional loan or if you use an FHA loan. It can often be removed later once you reach enough equity.
Most loans close in 20-40 days, depending on the loan type, appraisal timing, and how quickly documents are provided. Getting pre-approved early helps speed things up.
- Fixed-rate: Your interest rate and payment stay the same for the life of the loan.
- Adjustable-rate (ARM): Starts with a lower rate, then adjusts at set intervals.
Note: Fixed-rate loans offer stability; ARMs offer lower initial payments.
Yes. You'll typically need:
- 2 years of tax returns
- Business financials
- Consistent income history
Note: Lenders look for stability and the ability to repay - not your job type.
Refinancing may make sense if you want to:
- Lower your interest rate
- Reduce your monthly payment
- Pay off your home faster
- Remove mortgage insurance
- Tap equity for renovations or debt consolidation
Note: A quick review of your current loan vs. today's options can show if it's worth it.
Yes, if your down payment is less than 20%, but it can often be removed once you build enough equity.
It depends. Conventional loans may offer lower long-term costs, while FHA may be easier to qualify for.
Typically higher than FHA loans, often starting around 620, but stronger credit improves options.
Yes, in many cases conventional loans allow for second homes or investment properties.
Yes, FHA loans allow gift funds from approved sources.
No. FHA is commonly used by first-time buyers but is not limited to them.
Yes, mortgage insurance is required with FHA loans.
Yes, many borrowers refinance into conventional loans as their financial profile improves.
In most cases, no. Many eligible borrowers can purchase with zero down.
No. VA loans do not require private mortgage insurance.
The funding fee is a one-time cost that helps support the VA loan program. It may be financed into the loan.
Yes. VA benefits can often be reused, depending on your eligibility and prior usage.
Many rural and even some suburban areas qualify. Eligibility is based on specific geographic boundaries.
Yes. USDA loans are designed for moderate-income households, and limits vary by location and household size.
No. Eligible borrowers can purchase with zero down.
Yes, but it is typically lower than FHA mortgage insurance.
A jumbo loan is any mortgage that exceeds conforming loan limits set by regulatory agencies.
They typically require stronger credit, income, and asset documentation compared to standard loans.
Rates can vary, but competitive options are often available for well-qualified borrowers.
In many cases, yes, depending on the lender and program.
Yes. You retain ownership of your home as long as you meet loan obligations.
No. Monthly mortgage payments are not required, though property taxes and insurance must still be paid.
Typically when the home is sold, the borrower moves out permanently, or passes away.
Heirs can choose to sell the home, refinance, or pay off the balance if they wish to keep the property.
Non-QM stands for Non-Qualified Mortgage, meaning the loan does not follow standard qualified mortgage guidelines.
In many cases, yes. Some programs allow bank statements or other documentation instead.
Yes. These are legitimate loan programs designed for borrowers with strong financials but non-traditional profiles.
They may have different pricing compared to conventional loans, depending on the program and risk profile.
Not every change will derail your loan, but it's important to communicate with your lender as soon as possible.
From the time you start the loan process until closing is complete.
