FAQ's
Browse common questions about home loans, payments, and assistance programs.
How much do I need for a down payment?
It depends on the loan program. Some programs allow as little as 0% (VA, USDA) or 3–3.5% (conventional, FHA). A larger down payment can lower your monthly payment and may eliminate mortgage insurance.
What credit score do I need to buy a home?
Minimum scores vary by program and lender. FHA loans are generally more flexible, while conventional and jumbo loans often require higher scores. A loan officer can review your options.
What is a pre-approval and why does it matter?
A pre-approval is a lender's review of your income, assets and credit that estimates how much you may be able to borrow. It helps you shop with confidence and shows sellers you're a serious buyer.
How long does it take to close on a home loan?
Many loans close in about 30–45 days, though timing depends on the loan type, property and how quickly documents are provided.
What are closing costs?
Fees paid at closing, such as lender fees, appraisal, title insurance, escrow fees and prepaid items like taxes and insurance. They often total 2–5% of the loan amount.
What is included in my monthly mortgage payment?
Typically principal, interest, property taxes and homeowners insurance (often collected through escrow). Mortgage insurance and HOA dues may also apply.
What is mortgage insurance?
Insurance that protects the lender if a borrower defaults. It's commonly required on conventional loans with less than 20% down and on FHA loans.
Should I choose a fixed or adjustable rate?
A fixed rate keeps your principal and interest payment the same for the life of the loan. An adjustable rate usually starts lower and can change later. Your plans and budget help decide which fits.
Can I buy a home if I'm self-employed?
Yes. You'll usually provide two years of tax returns and business records. Bank statement and other non-QM programs may also be available.
Are there down payment assistance programs in California?
Yes. Various state and local programs offer grants or second loans to eligible buyers. Eligibility depends on income, location and other factors; ask your loan officer what's available.
What is debt-to-income ratio (DTI)?
Your total monthly debt payments divided by your gross monthly income. Lenders use it to judge how much payment you can comfortably manage.
When does it make sense to refinance?
Refinancing may make sense to lower your rate or payment, change your loan term, remove mortgage insurance or access equity. Compare your monthly savings with closing costs to see your break-even point.
Can I lock my interest rate?
Yes. A rate lock holds your rate for a set period while your loan is processed. Your loan officer can explain lock periods and options.
What happens if my appraisal comes in low?
You may renegotiate the price with the seller, pay the difference in cash, request a reconsideration of value, or explore other options with your loan officer.
What should I avoid during the loan process?
Avoid opening new credit, making large purchases, changing jobs or moving large sums of money without talking to your loan officer first.
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