FAQ’s

Frequently Asked Questions

The following are just a few of our most frequently asked questions. We invite you to connect with one of our loan officers today to discuss all of your questions.

A pre-approval is a lender’s conditional commitment to provide a specific loan amount. It helps you understand your budget, strengthens your offer, and speeds up the closing process. Our loan officers will work with you to collect the information and supporting documentation to complete your pre-approval so that you can go home shopping with confidence.

We are licensed to offer home loans in Arizona, California, Colorado, Hawaii, Nevada, Oregon, Texas and Washington state.

The specific documents vary based on loan type, but generally, you’ll need proof of income (pay stubs, tax returns), employment verification, bank statements, and identification (such as a driver’s license or passport). You can visit our Document Checklist page to see a comprehensive list of the most commonly requested documents. Your loan officer will provide a detailed list of items needed to complete your loan application.

Closing costs typically range from 2% to 5% of the home’s purchase price. They include fees for services like appraisal, title insurance, and loan origination. Your loan officer will provide a Loan Estimate detailing these costs.

A down payment is an initial payment made when purchasing a home. The minimum required down payment amount varies based on loan program and is a percentage of the home’s purchase price or appraised value. Visit our Loan Programs page to see a breakdown of minimum down payment by loan program.

You can obtain a free credit report annually from each of the major credit bureaus (Equifax, Experian, TransUnion) at AnnualCreditReport.com. Many credit card companies also provide free access to your credit score.

Please visit our “Current Rates” page to view today’s current rates. We encourage you to speak with a loan officer to receive a free, custom rate quote.

When comparing interest rates, it is important to look not only at the interest rate offered, but at the discount points and origination fees being charged as well. Discount Points are upfront fees paid at closing to lower the interest rate. One point is equal to 1% of the loan amount.

The APR is the Annual Percentage Rate, and is an important metric associated with mortgage loans. The APR provides a comprehensive view of the total cost of borrowing over the loan term, expressed as a yearly interest rate. It includes not only the loan’s interest rate but also certain fees and other costs associated with obtaining the mortgage.

The APR is designed to help borrowers make more informed decisions by considering all the costs associated with the loan, rather than just the interest rate. In addition to the interest rate, the APR may include:

  1. Origination fees: Charges by the lender for processing the loan.
  2. Points: Upfront fees paid to the lender to reduce the interest rate.
  3. Certain closing costs: Some closing costs, such as title insurance and appraisal fees.

By law, lenders are required to disclose the APR to borrowers, and it is typically found on the Loan Estimate. When comparing mortgage offers from different lenders, looking at the APR can provide a more accurate picture of the overall cost of each loan, helping borrowers make more informed decisions about which loan is the most cost-effective for their needs.

The type of property can affect your loan eligibility and terms. Factors like whether it’s a single-family home, condo, or investment property may influence the down payment required and other loan conditions. Your loan officer will most likely begin the initial consultation with you by asking your questions about the property type you are looking for a loan for so that they provide the most accurate, eligible loan options.

The timeline varies, but on average, it takes 30 to 45 days from application to closing. Factors like the complexity of your financial situation, appraisal delays, and document processing times can impact the duration.

No, we do not charge any upfront fees or application fees to apply for a home loan. Our goal is to provide transparent and fair lending practices, and you can proceed with the application process without any initial costs.

The mortgage process typically involves application, approval, home appraisal, underwriting, and closing. The borrower repays the loan amount plus interest over an agreed-upon period.

Your credit score, income, debt-to-income ratio, employment history, and down payment are key factors influencing your eligibility for a home loan.

A fixed-rate mortgage has a constant interest rate throughout the loan term, while an ARM’s interest rate can change periodically, affecting your monthly payments.

PMI is insurance that protects the lender if the borrower defaults on the loan. It’s typically required if the down payment is less than 20%.

Yes, many mortgages allow early repayment without penalties. Check your loan terms or discuss this with your lender.

Mortgage interest is usually calculated on the outstanding loan balance. In the early years, a larger portion of your payment goes toward interest, gradually shifting to principal.

Refinancing involves replacing your current mortgage with a new one. Homeowners are motivated to refinance to help lower interest rates, reduce monthly payments, or change the loan term.

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