Everything you need to know about financing your new home.
We know the mortgage process can feel overwhelming. That is why we have put together answers to the questions we hear most. If you do not see what you are looking for, our team is available seven days a week and happy to help.
What is a mortgage?
A mortgage is a loan used to purchase a home. You borrow a set amount from a lender and repay it over time, typically 15 or 30 years, with interest.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate of what you may be able to borrow. Pre-approval is a more thorough review of your finances and carries more weight when making an offer on a home.
What factors affect my mortgage rate?
Your interest rate is influenced by your credit score, loan type, down payment amount, and current market conditions. Our team works hard to find you the most competitive rate available.
How long does the mortgage process take?
Timelines can vary but our team works to keep things moving as efficiently as possible. We will keep you informed and up to date every step of the way.
What is included in a monthly mortgage payment?
Your monthly payment typically includes your principal, interest, property taxes, and homeowners insurance. Depending on your loan, it may also include private mortgage insurance.
What documents will I need to apply?
Most applicants will need recent pay stubs, tax returns, bank statements, and a valid form of identification. Your loan officer will provide a full checklist based on your specific situation.
What is private mortgage insurance and do I need it?
Private mortgage insurance, or PMI, is typically required when your down payment is less than 20%. It protects the lender but is an added cost to your monthly payment. Our team can help you explore ways to minimize or avoid it.
What happens at closing?
Closing is the final step in the mortgage process where you sign all necessary documents, pay any closing costs, and officially take ownership of your new home.
How much can I afford to borrow?
This depends on factors like your income, credit score, existing debt, and down payment. Our team will review your full financial picture and help you find a loan amount that works for your budget.
How much do I need for a down payment?
Down payment requirements vary by loan type. Some loan programs allow as little as 3% down while others may require more. Our team will help you find the best option for your situation.
What is a Conventional Loan?
A conventional loan is not backed by a government agency and typically requires a stronger credit score and a down payment of at least 3% to 5%. It is one of the most common loan types and offers flexible terms for qualified buyers.
What is an FHA Loan?
An FHA loan is backed by the Federal Housing Administration and is a great option for first time buyers or those with a lower credit score. FHA loans allow down payments as low as 3.5% and have more flexible qualification requirements.
What is a VA Loan?
A VA loan is available to eligible veterans, active duty service members, and surviving spouses. Backed by the Department of Veterans Affairs, VA loans often require no down payment and no private mortgage insurance, making them one of the most valuable benefits available to those who have served.
What is a USDA Loan?
A USDA loan is backed by the United States Department of Agriculture and is designed for buyers purchasing homes in eligible rural and suburban areas. USDA loans often require no down payment and offer competitive interest rates for qualifying buyers.
What is a Jumbo Loan?
A jumbo loan is used to finance homes that exceed the conforming loan limits set by federal guidelines. These loans typically require a higher credit score, a larger down payment, and stronger overall financial profile. They are a great option for buyers looking at higher priced properties.
What if I am not sure which loan is right for me?
That is exactly what we are here for. Our experienced loan officers will review your situation and help you find the loan that best fits your goals, your budget, and your life.
