Frequently Asked Questions


Answers to our most frequently asked questions…

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What is the difference between being pre-approved and pre-qualified?

Pre-qualification simply means that the applicant has given us basic information about their income, assets, debts, credit score, and we determine which loans they may qualify for. Pre-approval takes it a step-further and requires documentation of that information, as well as a credit check. Getting pre-qualified or pre-approved will give you a leg up when it comes to making offers on your dream home.

What are closing costs?

Closing costs are the fees associated with your home purchase that are paid at closing (when the title is transferred from seller to buyer). They may vary by transaction, but may include things such as processing/underwriting fees, appraisals, closing fees, credit reports, home inspections, HOA fees, taxes, insurance, etc. They may be paid either by the buyer or the seller.

What kind of documentation will i need to provide?

Examples of things we may need to process your loan application: drivers licenses, social security number, pay stubs, W2’s from the past two years, bank statements, verification of employment, or documentation of assets/expenses. Alternative forms of documentation may be required depending on the complexity of your financial situation.

What’s the difference between my interest rate and apr?

The interest rate is the cost you pay monthly on the remaining balance on your loan. Your APR, or annual percentage rate, includes both your interest rate and any other costs associated with the loan, such as origination fees, points, PMI, or underwriting/processing fees.

What is pmi?

Private mortgage insurance protects lenders against loss should a borrower default on their loan. PMI is generally required on loans with initial loan-to-value percentages above 80%. Generally speaking, if your down payment is less than 20%, you will be required to pay monthly PMI on a conventional loan until your LTV reaches 78-80%.