the mortgage world is confusing, we're here to simplify it.

frequently asked questions

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mortgage basics

  • What Is a mortgage?

    A loan used to buy a home or property, with the home serving as collateral.

  • How does a mortgage work?

    Borrowers agree to repay the loan with interest over a set period of time, typically 15-30 years.

  • Fixed-rate mortgage vs. adjustable-rate mortgage?

    A fixed-rate mortgage has the same interest rate for the life of the loan, while an ARM has rates that may change periodically.

  • What types of mortgages are available?

    There are many! Some examples include conventional loans, FHA loans, VA loans, USDA loans and jumbo loans.

eligibility & qualification

  • what credit score do I need to qualify?

    Minimum scores vary by loan type. If you don't meet the requirements, our team will put a plan together to help you meet your goal.

  • How much income do i need to qualify?

    This depends on your debt-to-income ratio (DTI). Usually this is capped at 43-50% for most loans.

  • Do i need to be pre-approved before house hunting?

    Not necessarily, however it's recommendded because it strengthens your offer by showing sellers you're a serious buyer.

  • can i get a loan if i am self-employed?

    Yes, but you'll need to provide proof of stable income, usually via tax returns and bank statements.

down payment and costs

  • How much is needed for a down payment?

    This depends on loan type!  


    Conventional: 3%-20%

    FHA: 3.5%

    VA and USDA: 0%

  • What is PMI?

    Private Mortgage Insurance: the insurance required when the down payment is under 20% to protect the lender in case of default. This goes away once you pay off a set amount of the loan.

  • What are closing costs?

    They are fees for processing the loan and are usually 2-5% of the home's purchase price.

  • Can I use gift funds for down payment?

    Yes, most lenders allow this with proper documentation.

loan process

  • How long does it take to get a mortgage?

    Typically the process is 30-45 days from application to closing.

  • What documents do I need to apply?

    Typically, you'll want to gather the following: Paystubs, tax returns, bank statements, and identification.

  • Can I lock in my interest rate?

    Yes, most lenders offer rate locks to secure your interest rate for a specific period.

  • What happens if I am denied?

    You can work on improving your credit, reducing debt, or saving more before reapplying.

Repayment and Maintenance

  • What happens if i miss a mortgage payment?

    Late payments may incur fees and damage your credit. Prolonged non-payment can lead to foreclosure.

  • Can i pay off my mortgage early?

    Yes, but check if your loan has prepayment penalties. 

  • What is escrow, and how does it work?

    Escrow is an account where lenders hold funds for annual property taxes and insurance premiums.

  • What is refinancing, and when do i consider it?

    Refinancing is the process of replacing your existing mortgage with a new one, typically to take advantage of better terms. When you refinance, you pay off your original loan with the new one, which can result in a lower interest rate, a shorter loan term, or access to cash through your home’s equity.

Special Situations

  • Can i get a mortgage with bad credit?

    Some loans, such as FHA, allow lower credit scores but terms may be less favorable (I.E. higher interest)

  • What if I'm buying a home for investment or rental purposes?

    We have programs tailored specifically for investors to help you qualify with your projected rental income.

  • Can I transfer my mortgage to someone else?

    Some loans, like VA and FHA, are assumable under specific conditions.

  • does my spouse need to be on the loan?

    Not necessarily, however in the state of Florida your spouse will need to sign closing documents if this will be your primary residence.