Frequently asked questions
Answers to What Borrowers Ask Most
No jargon. No runaround. Straight answers to help you move forward with confidence.
How much do I need for a down payment?
It depends on your loan type. FHA loans start at 3.5% down, conventional loans can go as low as 3%, and VA and USDA loans offer zero down payment options for those who qualify. Many buyers are surprised to learn how little they need to get started. We'll help you identify which program fits your situation and what down payment makes the most sense for your goals.
What credit score do I need to get a mortgage?
Most conventional loans require a 620 or higher. FHA loans can go down to 580 with a 3.5% down payment. But credit score is just one factor — income, debt-to-income ratio, and employment history all matter. Talk to one of our loan officers to get a real picture of where you stand and what options are available to you.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on information you provide. Pre-approval is a verified commitment — we've reviewed your income, assets, and credit. Sellers and Realtors take pre-approval seriously. We issue real pre-approvals, not just estimates, so you can shop with confidence and make competitive offers.
How long does the mortgage process take?
Most purchases close in 30–45 days from contract. Because our loan officers have direct access to leadership, we can often move faster when a deal needs it. We'll give you a realistic timeline from the first conversation and keep you informed at every step.
What type of mortgage should I get — fixed rate or ARM?
A fixed-rate mortgage keeps the same interest rate and payment for the life of the loan, providing predictability and stability. An adjustable-rate mortgage (ARM) typically offers a lower initial rate that adjusts after a set period. The right choice depends on how long you plan to stay in the home, your financial goals, and your tolerance for payment changes over time. A loan officer can help you compare both options and determine which fits your situation best.
What are closing costs and how much should I expect?
Closing costs typically run 2–5% of the loan amount and cover things like appraisal, title insurance, lender fees, and prepaid items. We'll walk you through a Loan Estimate so you know exactly what to expect before you ever sign anything. There should be no surprises at the closing table.
Can I get a mortgage if I'm self-employed?
Yes. Being self-employed does not prevent you from qualifying for a mortgage, but the process is often different than it is for traditional W-2 employees. Lenders typically review your tax returns, business income, assets, and overall financial picture. Depending on your situation, alternative programs such as bank statement loans may also be available. Whether you're a business owner, independent contractor, freelancer, or commission-based professional, there are mortgage solutions designed to fit a variety of income situations.
What is PMI and how do I avoid it?
PMI, or Private Mortgage Insurance, may be required when a borrower makes a down payment of less than 20% on a conventional loan. There are several ways to avoid PMI, including making a 20% down payment, using certain loan programs that do not require mortgage insurance, or exploring lender-paid mortgage insurance options. The best approach depends on your financial situation and long-term goals. An experienced loan officer can help you compare your options.
How do I know if refinancing makes sense for me?
Refinancing may make sense if it helps you achieve a financial goal, such as lowering your monthly payment, shortening your loan term, consolidating debt, or accessing equity. Closing costs, how long you plan to stay in the home, your current loan terms, and your overall financial objectives should all be evaluated. A loan officer can help you compare your current mortgage to available options and determine whether refinancing provides a meaningful benefit.
What is an escrow account?
An escrow account collects and pays certain property-related expenses on your behalf — typically property taxes and homeowners insurance. A portion of your monthly mortgage payment is set aside and paid by your loan servicer when those bills come due. Escrow accounts make budgeting easier and help ensure important expenses are paid on time. Depending on your loan type and down payment, an escrow account may be required or optional.
Does shopping for a mortgage hurt my credit score?
Applying for a mortgage may cause a small, temporary impact on your credit score. Many lenders use soft credit pulls during early stages, which do not impact your score. Additionally, credit scoring models recognize that borrowers shop for mortgages and typically treat multiple mortgage inquiries within a short period as a single inquiry. For most borrowers, any impact is minimal and short-lived.
Is buying a home better than renting?
The answer depends on your financial situation, lifestyle, and long-term goals. Renting offers flexibility and lower upfront costs, while buying builds equity, potential appreciation, and stability. Monthly mortgage payments can be more predictable than rent increases over time. However, owning a home comes with responsibilities such as maintenance, property taxes, and insurance. If you plan to stay in an area for several years and are financially prepared, buying may offer long-term benefits.
Why do I need a Realtor?
A good real estate agent serves as your advocate throughout the homebuying process — helping you find the right property, understand market conditions, negotiate terms, coordinate inspections, and manage paperwork. Buying a home is often one of the largest financial decisions you'll make, and having an experienced professional on your side can help you avoid costly mistakes and reduce stress.
Why do I need a loan officer?
A loan officer does much more than help you get approved. They serve as your guide throughout the financing process, helping you understand your options, compare loan programs, and avoid costly mistakes. Just as a real estate agent helps you find the right home, a loan officer helps you find the right financing solution. Having an experienced loan officer on your side can make the process smoother, less stressful, and more financially beneficial.
What should I budget for beyond my mortgage payment?
Homeowners should also budget for property taxes, homeowners insurance, utilities, maintenance, repairs, and potential HOA dues. A common rule of thumb is to set aside 1% of your home's value each year for maintenance. Items such as HVAC systems, roofs, and appliances can be significant expenses if you're not prepared. A loan officer can help you estimate your total monthly housing expense so there are fewer surprises after closing.
Still have questions?
Talk to a loan officer
Our team is available to answer your questions honestly — no pressure, no obligation.