Frequently Asked Questions

You have questions. We have answers. We have compiled answers to some of the most common inquiries we receive regarding our mortgage-financing services. Whether you are a first-time homebuyer, or an investor, our goal is to provide you with clear, concise information to help you make informed decisions. Our FAQ’s, and Help Center, cover a wide range of residential topics, including the application process, eligibility requirements, and much more. We aim to address all of your questions so you can feel confident, and well-prepared, as you move forward with your mortgage-financing journey. If you do not find the answer you are looking for, our team is always here to assist you. Simply reach out, and we will be happy to provide further clarification and guide you every step-of-the-way.

What is a mortgage?

A mortgage is a loan used to purchase a home or property. It is secured by the value of the property, meaning if you do not repay the loan, the lender can seize the property to recover the debt.

There are several types of mortgages, including:

  • Fixed-rate mortgage: The interest rate remains the same throughout the term of the loan.
  • Adjustable-rate mortgage (ARM): The interest rate may change after an initial fixed period.
  • FHA loans: Loans insured by the Federal Housing Administration, typically for first-time homebuyers or those with less-than-perfect credit.
  • VA loans: Loans backed by the Department of Veterans Affairs for eligible military service members and their families.
  • Conventional loans: Loans that are not insured or guaranteed by the government.
  • Pre-Qualification: An informal estimate of how much you can borrow based on self-reported financial information. It’s a good first step in the home-buying process.
  • Pre-Approval: A more formal process where the lender reviews your financial documents and credit report to determine how much they are willing to lend. Pre-approval gives you a more accurate idea of what you can afford.

You can apply for a mortgage-financing securely in our site. The application process typically involves submitting personal, financial, and employment information to assess your eligibility. We may guide you through each step of the process, let us know.

Down payments typically range from 3% to 20% of the purchase price, depending on the type of loan. Some government-backed loans, like FHA, or VA, loans, may allow for smaller down payments.

PMI is an insurance that protects the lender if you default on your loan. PMI usually required if your down payment is less than 20% of the purchase price. It can be removed once you have built enough equity in the home.

Your mortgage interest rate depends on several factors, including:

  • Your credit score
  • The size of your down payment
  • The type of loan you choose
  • Current market rates
  • The term of the loan (15-year, 30-year, etc.)

Yes, you can refinance your mortgage at any time, though it is typically done to secure a lower interest rate, shorten the loan term, or change your loan type. We can help you assess whether refinancing is the right option for you.

Escrow is an account that holds funds for property taxes and homeowners insurance, which are paid on your behalf by your mortgage-financing provider. Your monthly mortgage payment often includes an escrow portion, which covers these costs.

The mortgage-financing approval process usually takes 30-to-45 days, though it can vary depending on the complexity of your application and the type of loan you are applying for.

The general rule-of-thumb is that your mortgage-financing payment should not exceed 28% to 30% of your gross monthly income. However, other factors, such as debt-to-income ratio and current expenses, will also influence how much you can afford.