Your eligibility for a mortgage loan is dependent on several things. Some of the factors include your credit history, your ability to repay the loan, the loan amount, and the value of the collateral you are financing. Going through a prequalification or preapproval will help you determine your qualifications as a borrower.

A mortgage lender or broker who pre-qualifies a borrower would request information such as debt, income, and assets. They may also request documentation to support the information provided. They can then estimate the loan amount the borrower might qualify for. At the pre-approval stage, the lender or broker sends the information and documentation to an underwriter who in turn will approve or deny the application. The approval will be subject to identifying a property and collecting relevant documentation such as an appraisal and title report. Pre-approvals are often preferred by sellers when considering an offer. Ask your seller or Realtor®. You can start the pre-approval process today by clicking here.

APR stands for Annual Percentage Rate. APR takes into account the points and other finance charges. It helps borrowers understand the true cost of a loan while preventing lenders and brokers from hiding fees and advertising misleading interest rates.

In the case of a purchase transaction, at the time of closing, the transfer of ownership takes place. The borrower signs the promissory note (note) and the security instrument (mortgage). The closing involves attorneys, buyers, sellers, real estate agents, and the title company. This finalizes the transaction and you will be given a folder of the closing documents for your records.

The closing stage includes fees like attorney fees, title insurance fees, documentation fees, appraisal fees, and pre-paid interest fees. The overall cost varies depending upon the type of mortgage a consumer chooses. These are the questions that are most asked by borrowers. If you have any other questions, please feel free to contact us.

A mortgage is a loan used to purchase a home or property. In the U.S., the property serves as collateral. If the borrower fails to repay, the lender can foreclose and sell the property.

Conventional Loans – Not insured by the government, often require good credit and a higher down payment. FHA Loans – Backed by the Federal Housing Administration, ideal for first-time buyers with lower credit scores. VA Loans – For eligible veterans, active-duty military, and certain family members; often require no down payment. USDA Loans – For rural property buyers with low-to-moderate income, often with zero down payment. Jumbo Loans – For loan amounts above conforming loan limits set by Fannie Mae and Freddie Mac.

It depends on the loan type: Conventional Loans – As low as 3%, though 20% avoids PMI. FHA Loans – Minimum 3.5%. VA & USDA Loans – Often 0% down for eligible borrowers.

PMI is required on most conventional loans if your down payment is less than 20%. It protects the lender, not you, and can be removed once you reach 20% equity.

Typically: Principal – The original loan balance Interest – The cost of borrowing Taxes – Property taxes Insurance – Homeowners insurance (and possibly mortgage insurance) This is often abbreviated as PITI.

Conventional Loans – Typically 620+ FHA Loans – As low as 580 (with 3.5% down) VA/USDA Loans – Usually 620, but can vary by lender

Generally 30–45 days from application to closing, depending on the lender, documentation, and appraisal timelines.

Closing costs are typically 2–5% of the loan amount. They include lender fees, title insurance, escrow fees, and other third-party charges. Some programs allow sellers to cover part of these costs.

Yes! In fact, it's recommended. A pre-approval shows sellers you're a serious buyer and can speed up the process once you make an offer.

Fixed-Rate Mortgage – Your interest rate stays the same for the entire loan term (e.g., 15 or 30 years). Adjustable-Rate Mortgage (ARM) – The rate may start lower but can change over time based on market conditions.

Yes. Refinancing can help you lower your interest rate, change your loan term, or tap into home equity through a cash-out refinance.

Contact your lender immediately. Options may include forbearance, loan modification, or repayment plans. The earlier you act, the more solutions you’ll have.