Most-Searched Mortgage FAQs

Straight answers to the questions people ask most when buying, refinancing, or comparing programs.

• ▼How much house can I afford?

  A quick rule is your total monthly housing (PITI + HOA + PMI) ≤ 28%–31% of gross income, and all debt ≤ 36%–45% depending on program. We’ll model scenarios with your numbers.
• ▶What’s the difference between interest rate and APR?

  Rate is the cost of interest. APR wraps in certain lender/third-party fees and points so you can compare offers apples-to-apples.
• ▶How much are closing costs?

  Typically 2%–5% of the loan amount (sometimes up to ~6%). You’ll receive an itemized Loan Estimate after application showing lender, title, appraisal and prepaid items.
• ▶How fast can I get pre-approved?

  Often same day once key docs are uploaded. Fastest path: take the Loan Match Quiz, then upload ID, income, and asset docs in our secure portal.
• ▶Do I need 20% down?

  No. Conventional can go as low as 3%, FHA 3.5%, VA/USDA may allow 0% if eligible. Jumbo varies by profile.
• ▶What credit score do I need?

  Many programs approve in the 580 and above range. Lower scores may work with FHA down to 500 or non-QM. Stronger credit improves pricing and mortgage insurance.
• ▶What is PMI and when can I remove it?

  PMI protects the lender on Conventional loans <20% down. It can drop at 78% LTV automatically or be petitioned at 80% LTV with a clean history/often a new appraisal. FHA MIP rules differ and may remain for the term depending on LTV at closing.
• ▶Pre-qualification vs Pre-approval — what’s the difference?

  Pre-qual is an initial estimate using unverified info. Pre-approval is underwriter-ready with verified docs and a credit pull—this is what sellers want.
• ▶How long is a pre-approval letter good for?

  Usually 60–90 days. We can refresh quickly with updated docs and credit if needed.
• ▶Are ARMs safe?

  ARMs can lower initial payments and make sense if you’ll move/refi before the first adjustment. We’ll show caps, indices, and worst-case payment so you can compare to fixed.
• ▶Should I pay points or take a lender credit?

  Points buy down the rate; credits reduce cash-to-close. The right choice depends on how long you’ll keep the loan. We’ll run a breakeven with your numbers.
• ▶What are seller concessions and can I use them?

  Concessions are seller-paid closing costs. Limits vary by program (e.g., 3–6% depending on the loan program). We’ll structure your offer within the rules.
• ▶Can I use gift funds for my down payment?

  Often yes. Programs allow gifts from eligible donors (documentation required). We’ll provide the exact gift letter and transfer steps.
• ▶What if the appraisal comes in low?

  Options include renegotiation, additional funds, program change, or a reconsideration of value. We’ll advise the best path for your file.
• ▶How do rate locks work?

  Common lock periods: 30–60 days. Extensions and float-downs may be available depending on market and program.
• ▶What actually determines my mortgage rate?

  The bond market + program type, LTV, credit, points/credits, occupancy, and lock period. We’ll show a transparent pricing stack so you see exactly what moves your rate.