Question 1

What credit score do I need to get a mortgage?

Accepted Answer

It depends on the loan type. Conventional loans typically require a minimum 620 score, FHA loans can go as low as 580 (with 3.5% down) or 500 (with 10% down). VA and USDA loans have no official minimum but most lenders require 620+. DSCR and bank statement loans typically require 660+. The higher your score, the better your rate.

Question 2

How much down payment is required?

Accepted Answer

Down payment requirements vary by loan type: Conventional loans start at 3%, FHA at 3.5%, VA and USDA at 0%, and investment property loans typically require 20–25%. Jumbo loans often require 10–20%. Down payment assistance programs can help cover some or all of the required down payment for eligible buyers.

Question 3

How long does the mortgage process take?

Accepted Answer

A typical purchase transaction takes 21–45 days from application to closing. Refinances can sometimes close faster. DSCR and non-QM loans may take slightly longer. We work hard to close as quickly as possible — many of our purchase transactions close in under 30 days.

Question 4

What's the difference between pre-qualified and pre-approved?

Accepted Answer

Pre-qualification is a quick estimate based on self-reported information — it gives you a ballpark of what you might qualify for. Pre-approval involves a full application, credit pull, and income/asset verification. A pre-approval letter is much stronger when making an offer on a home.

Question 5

Can I buy a home if I have student loans?

Accepted Answer

Yes. Student loans are factored into your debt-to-income ratio (DTI). If your student loans are in deferment or income-based repayment, we use a calculated payment for DTI purposes. Many borrowers with significant student loan debt still qualify for mortgages — it depends on your overall financial picture.

Question 6

What are closing costs?

Accepted Answer

Closing costs typically range from 2–5% of the loan amount and include lender fees, title insurance, appraisal, attorney fees, prepaid taxes and insurance, and more. In New Jersey, attorney fees are standard. We provide a detailed Loan Estimate within 3 business days of your application so you know exactly what to expect.

Question 7

Should I lock my interest rate?

Accepted Answer

Rate locks protect you from rate increases during the loan process. Most locks are 30–60 days. Whether to lock depends on market conditions and your timeline. We'll advise you on the best strategy based on current rate trends and your closing date.

Question 8

What is PMI and how do I avoid it?

Accepted Answer

Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20%. It protects the lender, not you. You can avoid PMI by putting 20% down, using a piggyback loan (80/10/10), or choosing a lender-paid PMI option. PMI can be removed once you reach 20% equity.

Question 9

Can I buy a home with no money down?

Accepted Answer

Yes — VA loans (for eligible veterans) and USDA loans (for eligible rural/suburban properties) offer 100% financing with no down payment. Down payment assistance programs can also reduce or eliminate out-of-pocket costs for eligible first-time buyers.

Question 10

How do I choose between a fixed and adjustable rate?

Accepted Answer

A fixed-rate mortgage keeps the same rate for the life of the loan — ideal if you plan to stay long-term or want payment certainty. An adjustable-rate mortgage (ARM) starts lower but adjusts after an initial period. ARMs can make sense if you plan to sell or refinance before the adjustment period.

Question 11

What documents will I need for a mortgage?

Accepted Answer

Typically: 2 years of W-2s and tax returns, 2 months of pay stubs, 2 months of bank statements, government-issued ID, and information on any other assets or debts. Self-employed borrowers may substitute bank statements for tax returns. We provide a complete checklist after your initial consultation.

Question 12

Can self-employed people get mortgages?

Accepted Answer

Absolutely. Self-employed borrowers have several options: traditional qualification using 2 years of tax returns, bank statement loans (12–24 months of deposits), or DSCR loans for investment properties. We specialize in helping self-employed borrowers find the right program.

Question 13

What is a DSCR loan?

Accepted Answer

A DSCR (Debt Service Coverage Ratio) loan qualifies based on the rental income of the investment property — not your personal income or tax returns. The DSCR is calculated by dividing gross rental income by total monthly debt (PITIA). A ratio of 1.0 or higher typically qualifies. No W-2s, no tax returns, no personal income required.

Question 14

How does refinancing work?

Accepted Answer

Refinancing replaces your existing mortgage with a new one. You apply, get approved, and close on the new loan — which pays off the old one. You can refinance to get a lower rate, reduce your term, switch from ARM to fixed, or access equity (cash-out refinance). We analyze your break-even point to confirm refinancing makes financial sense.

Question 15

What are points and should I pay them?

Accepted Answer

Mortgage points (also called discount points) are upfront fees paid to reduce your interest rate. One point equals 1% of the loan amount and typically reduces your rate by 0.25%. Whether to pay points depends on how long you plan to keep the loan. We calculate your break-even point so you can make an informed decision.

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Saturday	Closed
Sunday	By Appt.

Common Questions