Frequently asked questions

Pre-qualification is an estimate based on what you tell me — useful for orientation, not much else. Pre-approval means your income, assets, and credit have actually been reviewed. In a competitive market, sellers frequently will not consider an offer without a pre-approval behind it.

Less than most people assume. VA and USDA allow zero down for eligible buyers, FHA starts at 3.5%, and several conventional programs start at 3%. Down payment assistance can cover part or all of the rest, and the entire amount can often be a documented gift.

A mortgage credit pull is a hard inquiry, but the scoring models treat all mortgage inquiries within a shopping window as a single event. Shopping several lenders in a short period is expected behavior and is scored that way.

A straightforward purchase typically runs a few weeks from application to closing; refinances vary more. The single biggest variable is how quickly documentation comes back, which is the part you control.

It depends entirely on the program. Government-backed loans reach further down the credit scale than conventional ones, and Non-QM programs go further still. Score also affects pricing, not just approval, which is why it is worth reviewing before you apply.

Not at all — it just means the documentation looks different. Bank statement, 1099, profit-and-loss, and asset depletion programs establish income without relying on tax returns, which matters when good tax strategy has driven your taxable income down.

It compares your monthly debt payments to your gross monthly income. It is the primary constraint on how much you can borrow, and it is often more binding than either your credit score or your down payment.

Frequently, yes. What matters is the monthly payment relative to your income, not the balance. Different programs also calculate student loan payments differently, which occasionally decides which program works.

Lender fees, third-party fees such as appraisal and title, and prepaid items like taxes and insurance. Seller credits and lender credits can offset them, and both are negotiable — this is a place where asking pays.

It protects the lender when the down payment is small. On conventional loans it drops off once you build enough equity. On most FHA loans it does not. VA loans have none at all. There are also structures that move the cost into the rate instead of a monthly premium.

Only if you will hold the loan long enough to recover the cost. Points are prepaid interest, so the calculation is entirely about your time horizon — a good deal for someone staying fifteen years and a bad one for someone selling in three.

When the savings cover the costs well before you would sell or refinance again, or when you are changing the loan's structure — dropping mortgage insurance, leaving an adjustable rate, or shortening the term. Chasing a small rate improvement alone rarely justifies it.

If your first mortgage carries a low rate, a cash-out refinance reprices the entire balance to today's market just to access a fraction of it. A second lien prices only the new money and leaves the first mortgage alone. Run both before deciding.

Sometimes. FHA and VA both offer streamline refinances with reduced documentation and, in many cases, no appraisal — which is exactly the situation where limited equity would otherwise stop you.