Recognizing misleading advertising
Frequently Asked Questions
Straight answers to the questions we hear most.
Jumbo loan underwriting is significantly more rigorous. Lenders will conduct a deep dive into your finances, including:
Verified Assets: You must have sufficient cash reserves, often enough to cover 6 to 12 months of mortgage payments.
Low Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI ratio of 43% or lower.
Detailed Documentation: Expect to provide extensive documentation on income, assets, and employment.
Verified Assets: You must have sufficient cash reserves, often enough to cover 6 to 12 months of mortgage payments.
Low Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI ratio of 43% or lower.
Detailed Documentation: Expect to provide extensive documentation on income, assets, and employment.
This usually comes down to fees. If Lender A and Lender B offer the same 6.5% interest rate, but Lender A has higher origination fees, their APR will be higher. This highlights why comparing APRs is essential for identifying the most cost-effective lender.
You should contact your loan officer immediately to discuss any discrepancies or information that seems incorrect. It is crucial to address errors early, as the Loan Estimate forms the basis for the final Closing Disclosure you’ll receive before settlement.
These terms are often used interchangeably in the mortgage context. Technically, “forbearance” is the general agreement to pause payments, while “deferment” often refers to the specific solution where the missed payments are moved to the end of the loan. In this case, you resume your normal payments, and the forborne amount becomes a non-interest-bearing balloon payment due when you sell the home, refinance, or pay off the loan.
You should meticulously compare your Closing Disclosure to the Loan Estimate you received at the start of the process. Key items to check include:
Loan Terms: Interest rate, loan amount, and loan type.
Projected Payments: Your monthly principal, interest, mortgage insurance, and escrow payments.
Closing Costs: Compare the “Total Closing Costs” and ensure no new or significantly higher fees have appeared unexpectedly.
Loan Terms: Interest rate, loan amount, and loan type.
Projected Payments: Your monthly principal, interest, mortgage insurance, and escrow payments.
Closing Costs: Compare the “Total Closing Costs” and ensure no new or significantly higher fees have appeared unexpectedly.
Get weekly rate updates and mortgage tips
No spam, just smart insights — unsubscribe anytime.