Mortgage FAQs

• What is a pre-approval?  Getting pre-approved means a lender checks your finances to tell you how much they will likely loan you. This gives you a clear price range for your home search and signals to sellers that you are a qualified buyer.
• How do I qualify for a mortgage?  To qualify for a mortgage, lenders require you to demonstrate financial stability through your credit score, income, employment history, and debt-to-income ratio. They want to see that you can consistently repay the loan and meet your other financial obligations.
• How much do I need for a down payment?  The down payment you need for a mortgage varies by lender and loan type. While 20% of the purchase price is often recommended to avoid Private Mortgage Insurance (PMI), some loans allow for much lower or even zero down payments. Options include FHA loans (as little as 3.5% down), VA loans, and USDA loans (both with 0% down for eligible borrowers). 
• What is PMI?  Think of PMI as a lender's safety net. If you can't afford a 20% down payment, this insurance allows you to get a home loan anyway. The trade-off is an extra fee that gets added to your monthly mortgage payment.
• What is a mortgage escrow account? "With a mortgage escrow account, you pay one monthly mortgage payment that covers not only your loan but also your property taxes and homeowner's insurance. The lender handles the separate payments to the tax authorities and insurance company for you".
• How long does it take to get a mortgage? "While we've closed loans in as little as 10 business days, a typical mortgage closing takes 30 to 45 days from application. To ensure a smooth and timely process, prepare for this timeline and stay ahead of potential delays. This proactive approach will help you move into your new home faster and with less stress".