We Answer Frequently Asked Questions About Our Mortgage Loan Process and Products

The minimum down payment varies depending on the loan, house, and occupancy type. Conventional loans typically require 3-5% down, while FHA loans may allow as low as 3.5% down. Some loan programs, like VA loans, may not require a down payment. For multi-unit or investment properties, the down payment can vary.

Yes, absolutely! Getting pre-approved shows sellers that you're a serious buyer and helps you understand your budget.

Factor in your monthly income, debts, and desired monthly housing payment. Don't forget to include closing costs, which can be 2-4% of the purchase price.

Private Mortgage Insurance, commonly called PMI, protects the lender's investment and is required on conventional loans with loans greater than 80% of the property value or purchase price. On FHA loans, MI is .55% of the loan amount each year, for the life of the loan.

Underwriters perform the critical operation of assessing a potential customer's creditworthiness and whether or not the customer(s) qualifies for a loan. Think of them as the judges who review all the information we have provided them. An underwriter evaluates the customer's credit history through their past financial record, statements, and the value of collateral offered, among other parameters.

A monthly payment consists of four components: your principal and interest (the first mortgage), your homeowner's insurance, your monthly property taxes, and your mortgage insurance.

There are three things that go into your cash-to-close.  

• The first is your down payment, which can be 3.5% for an FHA loan and 3-5% for conventional loans on primary purchases. 
• The second is your closing costs, which include all the third-party fees that go into your loan. These are things like the credit report fee, the notary, the courier, the lawyers, the title company, and the underwriting and processing fees. The actual costs come down to the penny, but you can estimate between 2-3%. 
• The third thing is the prepaid taxes and insurance. You will need to pay a few months of property taxes ahead of time and several months to your insurance carrier. You can estimate about 1.25% for this, though the number comes down to the penny once we know your tax rate and insurance premiums. 

Price is not the only factor in determining how much house you can afford—other items include interest rates, credit scores, down payment, income, and more. Review our mortgage calculator to find your estimated monthly payment (mortgage and interest). However, to know exactly how much you can afford, please reach out, and we will determine what you qualify for.

Your credit score is a three-digit number that shows your ability to repay debt. Lenders use it to decide whether you can be approved for a credit card or loan. Credit scores range from 300 to 850 points. Average credit scores range from 660 to 720. Your credit score can also affect your interest rate. The higher your score, the more likely you will get a lower interest rate. You will need at least a 590 for an FHA loan and a 620 for a Conventional loan. Jumbo loans, ITIN loans, bank statement loans, and other less common loans have their minimum requirements, typically 660.