A mortgage is a loan obtained to finance the purchase of a home or property. It is secured by the property itself, meaning that if the borrower fails to repay the loan, the lender can take possession of the property through a process called foreclosure.

When you get a mortgage, you borrow money from a lender to buy a home. You then make regular payments, usually monthly, to repay the loan over an agreed-upon term, typically 15, 20, or 30 years.

There are various types of mortgages, including conventional loans, FHA loans, VA loans (for eligible veterans and service members), bank statement, investor, new construction, and USDA loans (for rural areas) and more. Each type has its own eligibility requirements and terms. We have 30+ available programs!

A fixed-rate mortgage has a constant interest rate throughout the loan term, providing predictable monthly payments. In contrast, an adjustable-rate mortgage (ARM) has an interest rate that can change periodically, usually after an initial fixed-rate period.

To qualify for a mortgage, lenders consider factors such as your credit score, income, employment history, debt-to-income ratio, and the amount of down payment you can provide.

The down payment requirement varies based on the type of mortgage and the lender's policies. Conventional mortgages may require a down payment of 3% for first time home buyers, 5% if you have owned a home in the last 3 years to 20%, while government-backed loans like FHA loans may accept down payments as low as 3.5%, and VA/USDA require no down payment.

PMI is insurance that protects the lender in case the borrower defaults on the loan. It is typically required when the down payment is less than 20% of the home's purchase price. There are programs where you or the lender can pay mortgage insurance up front.

Mortgage interest rates are influenced by factors such as the current market rates, your credit score, the loan term, loan amount, debt to income, the type of mortgage you choose, etc.

Yes, you can get pre-approved for a mortgage. Pre-approval involves a lender reviewing your financial information and determining the maximum loan amount they are willing to lend you. This pre-approval letter can strengthen your offer when buying a home.

Commonly required documents include proof of income (pay stubs, W-2s, or tax returns), bank statements, identification, and details about your assets and debts.

Closing costs are fees associated with finalizing the mortgage and transferring ownership of the property. They typically range from 2% to 5% of the home's purchase price.

A loan estimate is a document provided by the lender after you apply for a mortgage. It outlines the estimated costs and terms of the loan, allowing you to compare offers from different lenders.

Yes, you can refinance your mortgage to obtain better terms or rates. Consider refinancing if interest rates have dropped significantly, your credit score has improved, have equity that you would like to take advantage of, or you want to change the loan term

Your credit score is a crucial factor in determining your eligibility for a mortgage and the interest rate you'll receive. A higher credit score generally leads to better loan terms.

An escrow account is set up by the lender to hold funds for property taxes and homeowners insurance. It ensures that these essential expenses are paid on time. In some cases, lenders may require an escrow account

Many mortgages allow for early repayment without penalties. However, some mortgages may have prepayment penalties, so it's essential to review your loan terms.

Shorter mortgage terms, like 15-year loans, typically have higher monthly payments but result in less overall interest paid over the life of the loan. Longer terms, like 30-year loans, have lower monthly payments but higher overall interest costs.

A rate lock is an agreement between the borrower and lender to secure a specific interest rate for a set period. Rate locks are useful when interest rates are expected to rise before the loan closes.

Yes, various government programs and incentives, such as first-time homebuyer programs, down payment assistance, and tax credits, may be available to help home buyers.

If you're struggling to make mortgage payments, contact your lender immediately to discuss options such as loan modification, forbearance, or refinancing. Acting promptly can help you avoid foreclosure and find a solution that suits your situation.

While it might be challenging to qualify for a mortgage with a low credit score, it's not impossible. Some lenders offer loans for borrowers with less-than-perfect credit, but you may face higher interest rates or stricter terms.

A debt-to-income ratio is a financial metric that compares your monthly debt obligations to your gross monthly income. Lenders use this ratio to assess your ability to handle additional debt. Generally, a lower debt-to-income ratio is preferable for mortgage approval.

In some cases, you may have the option to include closing costs in your mortgage loan, but this will increase the overall amount you borrow and your monthly payments.

An amortization schedule is a table that outlines the breakdown of each mortgage payment over the loan term. It shows how much of each payment goes towards principal and interest, helping you track your progress in building equity.

Yes, self-employed individuals can get a mortgage. However, the process may be slightly more complex, as lenders typically require additional documentation to verify income and stability. We have a bank statement program specifically catering to the self employed borrower so no tax returns needed. Income is calculated on deposits from your business.

A jumbo mortgage is a type of home loan that exceeds the maximum loan limits set by government-sponsored entities like Fannie Mae and Freddie Mac. Jumbo mortgages often have higher interest rates and stricter qualification requirements.

Discount points are upfront fees paid to the lender to lower the interest rate on your mortgage. Paying discount points can reduce your monthly payments over the life of the loan, but you'll need to consider how long it takes to recoup the upfront cost and if you are planning on refinancing to a lower rate in the future, if/when they do come down.

Yes, you can get a mortgage for a second home or investment property. However, the terms and requirements may differ from those of primary residence mortgages. We have 100+ lenders, so we can find you the best rate and terms for your situation.

Assessing your financial readiness involves considering factors such as your stable income, emergency savings, manageable debt, and ability to afford monthly mortgage payments and other homeownership costs.

If your mortgage application is denied, ask the lender for the specific reasons and work on addressing those issues. We have many lenders that may be able to get you to closing if you are denied by a direct lender or bank. Being a broker, we have access to several lenders that may be able to get you approved or at least give us an idea on what you have to do in the future to get approved. With us, you have other options if one lender says no!

To improve your chances of mortgage approval, maintain a good credit score, save for a significant down payment, pay off outstanding debts, and avoid major financial changes before applying.

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It is designed to help first-time home buyers and borrowers with lower credit scores or smaller down payments.

Yes, most mortgages allow for early repayment without penalties. Making additional principal payments can help you pay off your mortgage faster and save on interest.

A home appraisal is an assessment of the property's value conducted by a professional appraiser. Lenders require appraisals to ensure that the property's value supports the loan amount. In some cases, you may get an appraisal waiver but that depends on purchase price, down payment amount, and area. The majority of mortgages require an appraisal.

Having student loans or other debts doesn't automatically disqualify you from getting a mortgage. Lenders consider your overall financial picture, including your debt-to-income ratio, when assessing your mortgage application.

A home inspection is a thorough evaluation of a property's condition by a professional inspector. While it's not always required, getting a home inspection is highly recommended to identify any potential issues with the property before finalizing the purchase.

Yes, you can switch mortgage lenders even after starting the application process. However, it may involve some additional paperwork and delays, so it's usually best to compare rates and lenders before sending the application for disclosures/submitting to underwriting.

Pre-qualification is an initial assessment based on basic information you provide to a lender, giving you an idea of the loan amount you might qualify for. Pre-approval, on the other hand, involves a more detailed review of your finances by an underwriter, resulting in a stronger commitment from the lender.

Yes, some mortgage programs allow borrowers to use gift funds from family members for their down payment, but specific guidelines may apply. Be sure to check with your lender for their requirements.

A mortgage broker is a professional who acts as an intermediary between borrowers and multiple lenders, helping borrowers find suitable mortgage options. We can provide access to a variety of loan products and assist with the application process.

An escrow shortage occurs when there are insufficient funds in your escrow account to cover property taxes and insurance payments. This can happen due to changes in tax or insurance rates, leading to an increase in your monthly mortgage payment to cover the shortage.

In some cases, you may have the option to pay property taxes and homeowners insurance directly to the respective entities instead of having an escrow account. However, this may be subject to the lender's approval and specific loan terms.

Conventional loans are not insured or guaranteed by the government, while government-backed loans, such as FHA, VA, and USDA loans, have some level of government backing, which can offer more flexible qualifying criteria and down payment options.

The mortgage approval process can vary depending on the lender and various factors such as your financial situation and the complexity of the loan. Generally, it takes around 30 to 45 days from application to closing.

A temporary mortgage rate buydown involves paying additional upfront points (usually paid by seller concessions) to reduce your interest rate by a certain percentage amount for a certain number of years. For a 2-1 Buydown, the rate would be 2% lower the first year, and 1% lower the 2nd year, with it adjusting to the permanent rate at years 3-30.

A home equity loan is a separate loan taken against the equity you've built in your home. It allows you to borrow a lump sum with fixed payments, while a mortgage is used to purchase or refinance a property and is repaid over time.

Yes, some lenders consider non-traditional sources of income, such as freelance earnings, rental income, or investment returns, as long as you can provide documentation to support your income stability. A borrower can also use larger assets such as retirement, checking, and stock accounts for asset utilization. Lenders like to see the likelihood of any income to continue for at least 3 years including child support, disability, and alimony.

Mortgage insurance, such as PMI (Private Mortgage Insurance) or MIP (Mortgage Insurance Premium), protects the lender in case of borrower default and is typically required for borrowers with a down payment of less than 20%. Homeowners insurance, on the other hand, protects the homeowner against property damage and liability.

Yes, it is possible to get a mortgage after bankruptcy, but the waiting period and specific requirements will vary depending on the type of bankruptcy (Chapter 7 or Chapter 13) and the type of mortgage you're seeking.

An earnest money deposit is a sum of money that home buyers put forward as a sign of their commitment to purchasing the property. It shows the seller that you're serious about the purchase and may be used toward your down payment or closing costs.

Yes, having a co-borrower or co-signer with better credit or higher income can improve your chances of getting approved for a mortgage and potentially help you qualify for a higher loan amount or better terms.

A mortgage lender is the institution or individual that provides the funds for your home loan, while a mortgage servicer manages your mortgage account, collects payments, and handles customer service on behalf of the lender.

Yes, making extra principal payments can help you pay off your mortgage faster and save on interest costs over time. However, some mortgages may have prepayment penalties, so check your loan terms before doing so.

Yes, some mortgage programs, such as FHA and VA loans, offer low or no down payment options for eligible borrowers. Additionally, some conventional loan programs may allow for down payments as low as 3%.

To find the best mortgage rates, compare offers from different lenders, consider both online and local institutions, and pay attention to any special promotions or discounts they may offer.

A HELOC is a revolving line of credit that allows homeowners to borrow against the equity in their property. It operates similarly to a credit card, with a set credit limit and variable interest rate.

Missing a mortgage payment can negatively impact your credit score and lead to late fees and penalties. It's essential to communicate with your lender as soon as possible if you're facing financial difficulties to explore possible solutions.

Yes, we have first-time homebuyer programs that offer financial assistance, down payment assistance, or favorable terms for eligible individuals purchasing their first home.

Mortgage assumption is when a new borrower takes over an existing mortgage. While assuming a mortgage used to be more common, it's less prevalent today, and lenders may require the new borrower to qualify for the assumption.

Having a history of late payments or financial difficulties can make it more challenging to qualify for a mortgage. However, some lenders may work with borrowers who can demonstrate improved financial stability and creditworthiness.