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Frequently Asked Questions
Straight answers to the questions we hear most.
The pre-approval process can often be completed within a few days, and sometimes even within 24 hours, once you have submitted all the required documentation to your lender.
The interest rate is the cost you pay each year to borrow the money, excluding any fees. The APR includes the interest rate plus other costs like origination fees, discount points, and certain closing costs, giving you a more complete picture of the loan’s true annual cost.
While technically possible up until the moment you sign, it becomes extremely risky and impractical very close to the closing date. Switching with less than two weeks until closing is generally considered too late, as it will almost certainly delay the sale and jeopardize the entire transaction.
Credit score requirements can vary by lender, but general guidelines are:
FHA Loan: Typically a 580 score for the 3.5% down payment option. Borrowers with scores between 500-579 may qualify with a 10% down payment.
VA Loan: While the VA itself doesn’t set a minimum, most lenders look for a score of 620 or higher.
USDA Loan: Most lenders require a minimum credit score of 640, though some may accept lower scores with strong compensating factors.
FHA Loan: Typically a 580 score for the 3.5% down payment option. Borrowers with scores between 500-579 may qualify with a 10% down payment.
VA Loan: While the VA itself doesn’t set a minimum, most lenders look for a score of 620 or higher.
USDA Loan: Most lenders require a minimum credit score of 640, though some may accept lower scores with strong compensating factors.
A Home Equity Loan is a lump-sum loan with a fixed interest rate and fixed monthly payments, functioning like a second mortgage. A HELOC (Home Equity Line of Credit) is a revolving line of credit with a variable interest rate, allowing you to borrow, repay, and borrow again up to your credit limit, similar to a credit card.
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