Going through the mortgage process can be scary and confusing, but with the right information, it becomes much more manageable. Here are the top 10 questions I frequently receive from clients, along with detailed answers to help you understand the ins and outs of getting approved for a mortgage.

1. Do I need to get prequalified for a mortgage? Yes, getting prequalified helps you understand how much you can afford and shows sellers that you’re a serious buyer. It’s a preliminary step where the lender reviews your finances to give you an estimate of what you can borrow. But don’t stop are pre-qualification, move to pre-approval to insure you will have no issues in underwriting. If you don’t provide your lender with your paystubs, bank statements, w-2’s or tax returns, your prequalification letter is worthless.
2. How much mortgage can I afford? This depends on your income, debt, credit score, and the down payment you can make. Typically, lenders recommend that your mortgage payment (including principal, interest, taxes, and insurance) should not exceed 35% of your gross monthly income. My recommendation would be to keep total debts ratio including your student loans and other payments to less than 40% of your income.
3. What are the current mortgage rates? Mortgage rates fluctuate based on market conditions. It’s best to check with us directly for the most current rates, as they can change daily and even hourly. Remember, the quote you get is not necessarily the rate you will get until you receive a loan estimate indicating the rate is locked and for how long. You can get a quick quote now if you like by completing this request.
4. What types of mortgage loans are available? There are several types of loans including fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, and USDA loans. I also offer No Income Verification loans, 1099 Income Loans, Bank Statement Loans, and Debt Service Coverage Ratio Loans for investment properties. View my entire catalog of loan offers here. Each has its own advantages depending on your financial situation and goals.
5. What is the required down payment? Down payments can vary. Conventional loans typically require at least 3% for first-time homebuyers and 5% for others, FHA loans require as little as 3.5%, and VA and USDA loans might offer no down payment options for eligible borrowers. I also offer 100% FHA financing offers for buyers that qualify. This is a 96.5% FHA loan plus a 3.5-5% second loan the can be forgiven or repaid. If you want to learn more, just ask. 214.945.1066
6. Will my interest rate change over time? With a fixed-rate mortgage, your rate will stay the same for the life of the loan. With an ARM, your rate may change after an initial fixed period. You refinance to a lower rate too if rates drop.
7. How do I qualify for a mortgage? Lenders look at your credit score, income, employment history, debts, and down payment. Good credit, stable income, and a manageable debt-to-income ratio are crucial factors. There are a number of different options so don’t be shy, just ask.
8. What documents are needed for a mortgage application? You’ll need proof of income (pay stubs, tax returns or W-2’s), credit history, proof of assets (bank statements), employment verification, and identification documents. It’s is really not as hard as you may think it is to qualify. I have a great app for that.
9. How long does it take to get approved for a mortgage? The approval process can take anywhere from a few hours to a couple of months, depending on various factors including your financial situation and the complexity of your application. For most people, I can pre-approve you within a few hours.
10. Can I get a mortgage as a first-time homebuyer? Yes, there are many programs designed to help first-time homebuyers, including FHA loans and state-specific programs that offer assistance with down payments and closing costs. I have over 30 different programs to help my clients buy their first home. We can work together to explore your options and I will send you several to choose from. You take what works best for you.

Understanding these common questions can make the mortgage process much smoother. If you have any other questions or need personalized assistance, don’t hesitate to reach out to us by phone at 214.945.1066 or request a consultation here.