Mortgage FAQs

Clear, direct answers to what borrowers ask most—written for humans, not robots.

• ▼How much are closing costs?

  Typical buyer closing costs range about 2%–5% of the loan amount (sometimes up to ~6%). You’ll receive an itemized Loan Estimate before you lock. Costs include appraisal, title, prepaid taxes/insurance, and lender/third-party fees.

• ▶When can I remove PMI on a conventional loan?

  PMI typically drops automatically at 78% LTV. You can request removal at 80% LTV with a clean payment history—often using a new appraisal if your home value rose.

• ▶What credit score do I need to buy a home?

  Many programs approve with mid-600s; FHA may allow lower. Stronger credit improves pricing and mortgage insurance. We’ll review your tri-merge and show options to qualify or improve your rate.

• ▶How much do I need for a down payment?

  • Conventional: as low as 3% for eligible buyers
  • FHA: as low as 3.5%
  • VA/USDA: 0% down if eligible
  • Jumbo: varies by profile (often 5%–20%+)
• ▶What’s debt-to-income (DTI) and why does it matter?

  DTI compares your monthly debts to your gross income. Lower DTI improves approval odds and pricing. We’ll calculate your qualifying DTI and show strategies to reduce it if needed.

• ▶Should I pay points or take a lender credit?

  Paying points buys down the rate upfront; credits raise the rate to reduce closing costs. The right choice depends on how long you’ll keep the loan. We’ll run the breakeven with your numbers.

• ▶How do rate locks work?

  Common lock periods are 30–60 days. You can lock after application. Extensions and float-downs may be available depending on market conditions and program.

• ▶What if the appraisal comes in low?

  Options include seller concessions, price renegotiation, changing loan terms, or a reconsideration of value. We guide you through each path to protect your deal.

• ▶How fast can I get pre-approved?

  Often same day once we have key docs. Our digital intake speeds up verification so you can shop with confidence.

• ▶HELOC vs. Cash-Out Refinance — which is better?

  HELOCs are flexible and interest-only on what you draw; cash-out refinances replace your first mortgage with a new fixed payment. We’ll model both so you can compare payment impact and total cost.

• ▶Do I need an escrow account?

  Most loans require an escrow for taxes and insurance under certain LTV thresholds. Even when optional, escrow can simplify budgeting and avoid late penalties.

• ▶What actually determines my mortgage rate?

  Your rate reflects market bonds, loan type, LTV, credit score, points/credits, and lock period. We’ll show a transparent pricing stack so you see exactly what moves your rate.