Mortgage questions. Clear answers.
Clear answers about qualifying, payments and closing. Choose a topic to get started.
Getting ready
Start with your budget, qualifications and next steps.
What payment can I comfortably afford?
Budget for principal, interest, property taxes, homeowners insurance, mortgage insurance when applicable, association dues and maintenance. Leave room for your other priorities. The amount you qualify to borrow may be higher than the amount you want to spend.
How do prequalification and pre-approval differ?
Prequalification is usually an initial estimate based on information you provide. Pre-approval generally involves more verification. Lenders use these terms differently, so ask what was reviewed and what conditions remain. Neither guarantees final approval of you or the property.
Do I need 20% down?
Not always. Some programs allow smaller down payments. Eligible VA and USDA borrowers may have a no-down-payment option. Credit, income, property requirements, closing costs and lender guidelines still apply. Compare the full payment and upfront costs.
What documents do I need?
Requirements depend on your income, loan and situation. Our application checklist is a starting point. Confirm your lender’s requirements and submit sensitive records through the secure method your team provides.
What should I know about my credit?
Lenders review credit alongside income, debts, assets and the property. Mortgage scores may differ from those shown in consumer apps. Ask your Loan Officer before opening or closing accounts or taking on new debt during your application.
A soft credit pull can help us explore your mortgage options without affecting your credit scores. It doesn’t impact your scores because credit-scoring models do not count soft inquiries as applications for new credit. A hard credit inquiry may be required later as your application moves forward and can affect your scores.
How can a mortgage broker help?
A mortgage broker helps you understand available loan options, compare lender terms and prepare your application. Your broker can explain the tradeoffs between payment, upfront costs and program requirements. Available options depend on your situation and the lenders the broker works with.
Rates & payments
Understand what goes into your payment and your offer.
What are points and lender credits?
Discount points are an upfront cost paid for a lower interest rate. Compare the cost with potential payment savings and how long you expect to keep the loan. Lender credits can reduce upfront costs in exchange for a higher rate.
How does APR differ from the interest rate?
The interest rate determines interest charged on the loan balance. APR incorporates the rate and certain financing costs into a yearly measure. Compare it alongside the costs, term and rate type. APR alone does not tell you the monthly payment.
What does a rate lock mean?
A lock generally protects an agreed rate for a stated period under specified conditions. Confirm its expiration, fees and what happens if closing is delayed or your loan changes. A quoted rate is not necessarily locked.
What is private mortgage insurance?
PMI protects the lender if a borrower defaults. It is commonly required on conventional loans with less than 20% down and can apply to refinances with limited equity. Cost and payment options vary. Conventional PMI cancellation rules differ from FHA mortgage-insurance rules and VA funding-fee rules.
Preparing to close
Know what to expect as your purchase moves forward.
Is an appraisal the same as an inspection?
An appraisal evaluates property value for the lender; an inspection evaluates condition for you. An appraisal does not replace an inspection. Some loans qualify for an appraisal waiver or another valuation method; the lender determines eligibility.
How much money do I need at closing?
Cash to close includes your down payment and closing costs, adjusted for deposits already paid, eligible credits and other adjustments. Prepaids and initial escrow deposits can affect the total. Review your disclosures with your mortgage team.
What should I avoid doing before closing?
Talk with your mortgage team before taking on new debt, changing jobs, making large purchases or moving significant funds. Changes to your finances can require additional documentation or affect approval. Keep responding to requests so your team can address outstanding conditions.
What happens at closing?
Loan and property conditions must be resolved before signing and funding. Review the final terms and verify payment instructions with your Loan Officer. Funding and possession timing vary by transaction and state.
Refinancing
Decide whether a new loan supports your goals.
When should I refinance?
Compare your goal, new payment, loan term, closing costs and total borrowing cost. A longer term may lower the payment while increasing total interest. Ask your broker about alternatives and any break-even period.
Should I refinance or use a home equity loan?
A refinance replaces your existing mortgage. A home equity loan or HELOC typically adds borrowing secured by your home while leaving your first mortgage in place. Compare the combined payment, rates, fees and repayment terms.
Your situation deserves a conversation.
Let’s talk through your questions, compare your options and find a next step that fits your goals.
General educational information. Loan availability and requirements vary by program, lender, property and borrower qualifications. This page is not a commitment to lend.