Frequently Asked Questions

How much money do I need to have saved?
That can vary based on multiple factors, but as a general rule of thumb: All loans have closing costs that are on average around 3% – 5% of the purchase price of your home (the price you agree to pay for it on the contract). For example, if you are buying a home for $200,000 you can expect to pay on average $6,000-$10,000 for the closing costs (in addition to any down payment required).
What Are Closing Costs, and How Much Should I Expect to Pay?
Closing costs include fees for loan processing, title insurance, appraisal, and more, typically ranging from 2% to 5% of the loan amount. The exact amount varies based on the loan size and location.
Can I Buy a Home While Selling My Current One?
Yes, but it requires careful planning. Options include a contingent offer on a new home, a bridge loan to cover the interim period, or temporarily renting if selling happens first.
How Does My Credit Score Impact My Home Loan Options?
A higher credit score often leads to better loan terms, including lower interest rates and more loan options. A lower score might limit your options and result in higher rates.
What Factors Affect My Mortgage Interest Rate?
Factors include your credit score, down payment size, loan type, loan term, and current market conditions. A higher credit score and larger down payment typically secure lower rates.
What documents do I need to apply for a Pre-Approval?
Common documents required for a pre-approval include pay stubs, W-2 forms, proof of assets, and identification. Your mortgage specialist will guide you through the specific documentation needed to get started on your Pre-Approval.
How Does the Home Buying Process Work from Start to Finish?
It starts with pre-approval, followed by house hunting, making an offer, home inspection, securing a mortgage, and finally closing the deal. Each step involves various stakeholders and processes.
What Should I Look for During a Home Inspection?
Focus on major issues like structural integrity, roof condition, plumbing, electrical systems, heating/cooling systems, and potential pest infestations. Cosmetic issues are less critical but should be noted.
Can I refinance my existing mortgage?
Yes, we offer refinancing options for homeowners looking to lower their monthly payments, reduce their interest rates, switch from an adjustable-rate to a fixed-rate mortgage, or tap into their home equity for cash-out refinancing. Our mortgage specialists can discuss the best refinance option for your financial goals.
How Do I Determine How Much House I Can Afford?

Calculate based on your income, existing debts, down payment, and expected mortgage rate. A general rule is that your monthly mortgage payment should not exceed certain % of your gross monthly income.

What is the difference between Pre-Qualification and Pre-Approval for a Mortgage?
Pre-qualification is a preliminary step where the lender estimates how much you can borrow based on self-reported financial information. Pre-approval is more in-depth, involving a credit check and verification of your financial documents, giving a more accurate and credible estimate of your borrowing power.
How can I complete my application?
We can schedule a phone appointment or send you an online application.
Does my employment type affect the loan application process?
Yes, it does. We’ll need to know how you’re paid—whether it’s hourly, salary, commission, or self-employment. If you’re self-employed, tax documentation will likely be required to proceed with the application.
Do I need to have money saved for a down payment?
Yes, it’s important to have your down payment funds in a sourceable account, such as a bank account. Avoid using cash that can’t be traced, sometimes referred to as “mattress money.” This ensures the funds are acceptable for financing purposes.
What if I have collections or charge-offs on my credit?
If you have collections on your credit, keep in mind that a 5% holdback may be applied against them. This can impact your financing options, so it’s important to address these accounts early in the process.
How do foreclosures impact my ability to get a loan?
If you’ve had a foreclosure:
FHA Loan: Typically requires a 3-year waiting period from the date the foreclosure was completed (when the deed was transferred back to the lender). Exceptions can sometimes be made if the foreclosure was caused by “extenuating circumstances”
Conventional Loan: Generally requires a 7-year waiting period. However, this can be reduced to 3 years if you can document extenuating
How do bankruptcies affect my ability to qualify for a loan?
FHA Loan Bankruptcy Rules : FHA guidelines, set by the Department of Housing and Urban Development (HUD), are more forgiving and allow you to re-enter the housing market much sooner. 
  • Chapter 7: Requires a 2-year waiting period from the exact date of the bankruptcy discharge. You must show a solid track record of re-established credit and no new derogatory accounts. In rare cases of “extenuating circumstances,” the wait may be reduced to 12 months. 
  • Chapter 13 (Active): You can qualify while in an active repayment plan, provided you have made at least 12 months of on-time payments and receive written permission from the bankruptcy court or trustee. These files require manual underwriting.
  • Chapter 13 (Discharged): If your Chapter 13 has been officially discharged by the court, there is no additional waiting period required by FHA guidelines.         
Conventional Loan Bankruptcy Rules : Conventional loans, backed by Fannie Mae and Freddie Mac, generally require longer “seasoning” periods.
  • Chapter 7: Requires a 4-year waiting period from the date of the discharge or dismissal. (A 2-year exception may be made if you can document severe extenuating circumstances out of your control, but this is difficult to prove).
  • Chapter 13 (Discharged): Requires a 2-year waiting period from the date of the discharge.Chapter 13 (Dismissed): If the bankruptcy was dismissed by the court, the waiting period extends to 4 years from the dismissal date
Do I need to know my credit score to apply?
Knowing your credit score is helpful. Ideally, a score of 620 or higher is preferred. If your score is between 500 and 579, a minimum of 10% down payment may be required. A score of 580 or higher may qualify you for a 3.5% down payment on an FHA loan.
I’m a veteran—does that qualify me for any special programs?

Yes, it does! Veterans may qualify for VA loans, which often include benefits like no down payment and competitive interest rates.

What kind of monthly payment should I expect?
That depends on your budget and overall financial situation. We’ll work with you to identify a monthly payment that aligns with your goals and comfort level.
I’m interested in building, buying, or refinancing a home. Can you help with all of the above?

Absolutely! Whether you’re looking to build, buy, or refinance, we’re here to guide you through the process and find the best financing options for your needs.