Mortgage questions, answered clearly.

Pre-qualification is an early estimate based on information you provide. Pre-approval is a more complete review of your credit, income, assets, and documents. If you are actively shopping for a home, pre-approval may give sellers and real estate agents more confidence in your offer.

Many purchase loans close in 20 to 45 days after application. Some files can close much faster when the borrower's documents are ready, the appraisal moves quickly, title work is clear, and all parties are aligned. Intra-Mortgage has closed loans in as little as 10 days, but every timeline depends on the loan, property, borrower, and closing conditions.

A mortgage application usually requires a hard credit inquiry. That can lower a score by a few points for a short period. When you shop for a mortgage within a focused window, multiple mortgage credit checks are usually treated as one inquiry by credit scoring models.

Most borrowers need recent pay stubs, W-2s or tax returns, bank statements, a government-issued ID, and information about debts and assets. Self-employed borrowers may need business returns, profit and loss statements, or bank statements. Your loan officer will tell you what applies to your situation.

No. You can speak with a lender before choosing a real estate agent. Many buyers do this first so they understand their price range before they start touring homes.

VA loans are available to eligible veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses. Eligibility is confirmed through a Certificate of Eligibility. A loan officer can help you check whether your service history qualifies.

USDA loans are available in eligible rural and suburban areas. Some communities near larger cities may still qualify. Eligibility depends on the property address and USDA income rules for the county.

A jumbo loan is a mortgage above the conforming loan limit for the county where the property is located. In most of the United States, the 2026 one-unit conforming loan limit is $832,750. Loans above the applicable county limit usually require stronger credit, larger reserves, and a larger down payment.

A DSCR loan is an investment property mortgage that qualifies based on the rental income of the property rather than the borrower's personal income. DSCR stands for Debt Service Coverage Ratio. It is used by real estate investors who want to qualify on property cash flow without submitting tax returns.

A bank statement loan allows self-employed borrowers to qualify using 12 to 24 months of bank deposits instead of tax returns. It is designed for business owners and freelancers whose taxable income does not reflect their actual cash flow.

Many conventional loan programs require a minimum credit score of 620. FHA may allow lower scores with a larger down payment. VA and USDA guidelines do not work the same way as conventional loans, so lender requirements can vary.

PMI stands for private mortgage insurance. It is usually required on a conventional loan when the down payment is less than 20 percent. PMI can often be removed once you reach 20 percent equity, while FHA mortgage insurance follows different rules and may require refinancing to remove it.

Yes on most loan types. FHA, VA, and conventional loans all allow gift funds from family members for the down payment. Documentation is required showing the funds are a gift and not a loan.

Yes, having debt does not automatically prevent you from buying a home. Lenders look at your full financial picture including income, debts, credit, assets, and the new mortgage payment. The key number is your debt-to-income ratio.

Underwriting is the process where a licensed underwriter evaluates your financial profile and the property to determine whether the loan meets program guidelines. Most conditions are document requests. Your loan officer tracks conditions and keeps the file moving.

An appraisal is an independent assessment of the property's market value conducted by a licensed appraiser. Most purchase loans require one. Some refinance programs allow appraisal waivers depending on the loan type and available data.

Yes. A rate lock freezes your interest rate for a defined period, typically 30 to 60 days, while your loan is processed. Locking protects you if rates rise before closing. Your loan officer will advise on timing based on your closing timeline.

Closing costs are the charges and prepaid expenses needed to complete the mortgage. They may include lender fees, title fees, appraisal fees, prepaid interest, homeowners insurance, and property tax escrow deposits. The exact amount depends on the loan, property, state, and closing date.

Both buyers and sellers can pay closing costs depending on how the contract is negotiated. Buyers typically pay lender and title fees. Sellers sometimes contribute to closing costs as part of the purchase agreement. On FHA loans sellers can contribute up to 6 percent of the sale price.

An escrow account is managed by your lender to collect and pay property taxes and homeowners insurance on your behalf. A portion of your monthly payment goes into the escrow account each month so the funds are available when those bills come due.

At closing you sign the final loan documents, pay any remaining closing costs and down payment, and the title transfers to your name. Your loan officer and title company coordinate the process. Most closings take one to two hours.

A cash-out refinance replaces your existing mortgage with a larger loan and gives you the difference in cash. You can use the funds for any purpose including renovations, debt consolidation, or investment. Most lenders allow you to access up to 80 percent of your home value.

Many refinances close in 20 to 45 days. Some streamlined refinance programs may move faster because they require less documentation. Timing depends on the loan type, appraisal needs, title work, and how quickly requested documents are provided.

Break-even is calculated by dividing total closing costs by monthly savings. If closing costs are $6,000 and the refinance saves $200 per month, break-even is 30 months. If you plan to stay in the home longer than that, refinancing likely makes financial sense.

Yes, higher home value may improve your refinance options because it can lower your loan-to-value ratio. That may help with pricing, mortgage insurance removal, or cash-out eligibility. The lender will determine the usable value through the refinance review process.

Yes on most loan types. Conventional, FHA, VA, and USDA loans do not have prepayment penalties. Making extra principal payments reduces your balance faster and can save interest over the life of the loan.

Contact your loan servicer as early as possible. Most servicers have hardship and forbearance programs available. VA loans have a dedicated assistance program for eligible veterans. Acting early gives you more options.