Faq

A mortgage is a loan used to buy a home or property. You borrow money from a lender (like a bank or credit union), and in return, you agree to repay it over time with interest. The home itself serves as collateral until the loan is paid off.

It depends on the type of loan:

• Conventional loans: typically 5%–20%

• FHA loans: as low as 3.5%

• VA loans (for veterans): 0% down

A larger down payment can reduce your monthly payments and may help you avoid mortgage insurance.

• Pre-qualification is an estimate of how much you might be able to borrow, based on basic information you provide.

• Pre-approval involves a deeper review of your finances (credit check, income verification, etc.) and carries more weight with sellers.

Your interest rate is the cost you pay to borrow money. It can be:

• Fixed-rate: stays the same over the life of the loan

• Adjustable-rate (ARM): may start lower but can fluctuate over time

Lower credit scores and higher risk typically mean higher interest rates.

PMI is insurance that protects the lender if you default on your loan. It’s usually required when your down payment is less than 20%. Once you reach 20% equity in your home, you can often cancel PMI.

Lenders usually look at:

• Credit score

• Income and employment history

• Debt-to-income (DTI) ratio

• Down payment amount

• Property value

Keeping your credit healthy and managing debt can improve your chances of approval.

Typically 30–45 days from application to closing. This can vary based on how quickly you submit documents and how complex your financial situation is.

Yes! But some loans may include prepayment penalties, so it’s a good idea to check your loan agreement first. Paying extra toward your principal each month can save you money on interest over time.

A typical monthly payment includes:

• Principal – the amount you borrowed

• Interest – the cost of borrowing

• Taxes – property taxes

• Insurance – homeowner’s insurance (and sometimes PMI)

Some lenders collect these in an escrow account and pay them on your behalf.

Yes! Getting pre-approved helps you:

• Know your price range

• Make stronger offers

• Speed up the closing process

It shows sellers you’re serious and financially ready.