Mortgage FAQs

Answers to Common Homebuying and Mortgage Questions

Buying a home comes with a lot of questions. Whether you're preparing to purchase your first home or exploring your financing options, we're here to help.






Getting Started

  • How much home can I afford?

    The amount you may qualify for depends on factors such as income, debts, assets, credit history, and loan program requirements.

  • What's the difference between prequalification and pre-approval?

    Prequalification is an initial estimate based on information you provide. Pre-approval involves a more detailed review of your financial information and provides a stronger indication of your borrowing power.

  • Why should I get pre-approved before house hunting?

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  • How long does a pre-approval take?

    In many cases, pre-approvals can be completed quickly once the required documentation is received.

Credit and Qualification

  • What credit score do I need to buy a home?

    Credit score requirements vary by loan program. Some programs offer more flexibility than others.

  • Will checking my credit hurt my score?

    A mortgage credit inquiry may have a small temporary impact on your credit score.

  • Can I buy a home with less-than-perfect credit?

    Many buyers are surprised to learn they may still qualify for financing. The best way to understand your options is to speak with a loan consultant.

  • Should I pay off debt before applying for a mortgage?

    Every situation is different. In some cases, paying down debt may help improve your financial profile.

  • Can I qualify if I'm self-employed?

    Yes. Self-employed borrowers may have additional documentation requirements, but many financing options are available.

Down Payments and Cash to Close

  • How much should I save for a down payment?

    The amount required depends on the loan program and your financial goals.

  • Do I need a 20% down payment?

    No. Many loan programs allow qualified borrowers to purchase a home with less than 20% down.

  • What is earnest money?

    Earnest money is a deposit made when submitting an offer to demonstrate your commitment to purchasing the property.

  • How much cash will I need at closing?

    Cash needed at closing may include your down payment, closing costs, prepaid expenses, and any remaining fees associated with the transaction.

  • Can gift funds be used toward a down payment?

    Many loan programs allow gift funds from eligible sources.

Closing Costs and Expenses

  • What are closing costs?

    Closing costs are expenses associated with finalizing your mortgage and transferring ownership of the property.

  • What expenses should I expect when buying a home?

    Potential expenses may include:

    • Down payment
    • Earnest money deposit
    • Closing costs
    • Homeowners insurance
    • Property taxes
    • Moving expenses

  • Can closing costs be rolled into my loan?

    In some situations, financing options may be available. Your loan consultant can explain what options may apply to your situation.

  • Who pays closing costs?

    Both buyers and sellers may have closing-related expenses, depending on the terms of the purchase agreement.

The Mortgage Process

  • What documents will I need?

    Documentation may include:

    • Pay stubs
    • W-2s
    • Tax returns
    • Bank statements
    • Government-issued identification

  • How long does the mortgage process take?

    Timeframes vary depending on the loan program, property, and borrower circumstances.

  • What happens during underwriting?

    The underwriting process involves reviewing financial information, verifying documentation, and confirming that loan requirements have been met.

  • Can I change jobs during the mortgage process?

    Major employment changes should be discussed with your loan consultant before they occur.

  • Can I make large purchases before closing?

    It's generally best to avoid major purchases until after your loan has closed.

Homeownership Questions

  • What's the difference between a fixed-rate and adjustable-rate mortgage?

    A fixed-rate mortgage maintains the same interest rate throughout the loan term, while an adjustable-rate mortgage may change over time.

  • Should I buy a home or continue renting?

    The answer depends on your financial situation, goals, and timeline.

  • Can I buy a second home or vacation property?

    Yes. Financing options are available for qualified borrowers interested in purchasing a second home.

  • Can I purchase an investment property?

    Several financing options are available for real estate investors.

Still Have Questions?

Every homebuyer's journey is different.

Our team is here to provide trusted guidance, answer your questions, and help you move forward with confidence.



Talk With a Loan Consultant