Question 1

How much do I actually need to put down?

Accepted Answer

It depends on the program. Conventional loans start at 3% down for first-time buyers and 5% for everyone else. FHA is 3.5%. VA and USDA can be 0%. Jumbo is typically 10–20%. More down usually means a better rate and no mortgage insurance — but it's rarely 'the more the better' if it drains your reserves.

Question 2

Is 20% down still the rule?

Accepted Answer

No — that hasn't been the rule for a long time. 20% avoids PMI on a conventional loan, but plenty of buyers put less down on purpose and pay the PMI temporarily, especially in markets where waiting to save costs more than the insurance itself.

Question 3

Can the down payment come from a gift?

Accepted Answer

Yes, on almost every program. It has to be documented — a gift letter, a paper trail of the funds moving, and (on some loans) proof the donor had the money. Gifts from family are standard; some programs allow employer or non-profit gifts too.

Question 4

What about down payment assistance?

Accepted Answer

New Jersey and most states run first-time-buyer assistance programs — grants, forgivable second liens, or low-rate second mortgages. They stack with FHA and Conventional in most cases. Ask us early; some have income caps or homebuyer-education requirements.

Question 5

What credit score do I need to buy a home?

Accepted Answer

Rough floors: FHA 580 (or 500 with 10% down at some lenders), VA no set minimum but most lenders want 580–620, Conventional 620, Jumbo typically 700+. But the 'minimum' and the 'good rate' are different numbers — pricing improves meaningfully at 680 and 720, and the best conventional pricing tier today is 780+, not 740.

Question 6

Which score do lenders actually use?

Accepted Answer

Mortgage lenders pull all three bureaus (Equifax, Experian, TransUnion) using older FICO models — not the free apps. If you have a co-borrower, the lower of the two middle scores usually drives pricing. The number in Credit Karma is almost never the number we see.

Question 7

Will getting pre-approved hurt my score?

Accepted Answer

One mortgage pull typically dings it a few points and rebounds within a month. Multiple mortgage pulls inside a 14–45 day window count as a single inquiry for scoring purposes — so shopping around doesn't punish you.

Question 8

I have a collection / late payment / bankruptcy — am I done?

Accepted Answer

Almost never. FHA has some of the most flexible guidelines in the industry. Chapter 7 bankruptcies typically require 2 years seasoning for FHA/VA, 4 for conventional. Foreclosures are longer. A single old collection under $2,000 often doesn't need to be paid at all.

Question 9

What's the difference?

Accepted Answer

A pre-qualification is a quick conversation and a soft look — 'based on what you told me, here's roughly what you'd qualify for.' A pre-approval is a full underwritten review: credit pulled, income and assets documented, and (increasingly) run through automated underwriting. Sellers take a pre-approval seriously. A pre-qual is a napkin sketch.

Question 10

Is 'fully underwritten' pre-approval a real thing?

Accepted Answer

Yes, and it's the strongest offer letter you can bring. We upload your file to an underwriter before you have a property — the only remaining conditions are the appraisal and the specific address. In competitive offers it can beat a higher price.

Question 11

How long is a pre-approval good for?

Accepted Answer

Usually 90 days. Credit reports and pay stubs expire, so we refresh them if you're still shopping. Nothing wrong with staying pre-approved for six months — we just re-verify when you find the house.

Question 12

Does a pre-approval lock my rate?

Accepted Answer

No. A pre-approval says 'you can borrow this much.' A rate lock is a separate step and typically happens after you're under contract on a specific home.

Question 13

How much are closing costs?

Accepted Answer

Ballpark 2%–5% of the purchase price, higher on smaller loans (fixed fees don't scale down). In NJ specifically, expect the higher end — the state has meaningful title, recording, and mansion tax considerations above certain price points.

Question 14

What's actually in that number?

Accepted Answer

Origination fees, appraisal, credit report, title insurance (lender's and owner's), recording fees, state and county transfer taxes, prepaid interest, first-year homeowners insurance, and escrow reserves (property tax and insurance held for the servicer). We show every line on your Loan Estimate — no surprises.

Question 15

Can the seller pay them?

Accepted Answer

Often, yes. Seller concessions are capped by program (3%–9% depending on loan type and down payment). Especially in a market where homes sit a bit, this is a very common negotiation.

Question 16

Can I roll closing costs into the loan?

Accepted Answer

On a refinance, yes — that's normal. On a purchase, not directly, but a lender credit (higher rate in exchange for money toward closing) accomplishes the same thing when you don't want to bring extra cash.

Question 17

What is PMI?

Accepted Answer

Private Mortgage Insurance protects the lender (not you) if you default. On conventional loans it's required whenever you put less than 20% down. Cost typically 0.3%–1.5% of the loan per year, priced monthly.

Question 18

How do I get rid of it?

Accepted Answer

Conventional PMI automatically drops off at 78% loan-to-value based on the original amortization schedule. You can request removal at 80% LTV, and you can accelerate it with an appraisal if your home has appreciated.

Question 19

Is FHA MIP the same?

Accepted Answer

No — that's the big FHA gotcha. FHA has an upfront MIP (1.75% of the loan, financed) and an annual MIP that on most loans stays for the entire life of the loan. The typical exit strategy is to refinance out of FHA once you have equity.

Question 20

Can I avoid PMI without 20% down?

Accepted Answer

Sometimes. Lender-paid PMI (higher rate, no monthly premium), a piggyback second lien to keep the first at 80% LTV, or VA (which has no PMI at all). We'll run all three side by side when it's close.

Question 21

When can I lock my rate?

Accepted Answer

Once you're under contract on a specific property. Most lenders won't lock without an address and a purchase agreement. Refis can lock as soon as the application is in.

Question 22

How long can I lock for?

Accepted Answer

Common lock periods are 15, 30, 45, and 60 days. Longer locks cost slightly more. We match the lock to your realistic close date — over-locking wastes pricing.

Question 23

What if rates drop after I lock?

Accepted Answer

Some lenders offer a one-time 'float down' — for a small fee, you can capture part of a rate improvement before closing. Not every lender has it and not every scenario qualifies. We'll tell you when it's actually worth using.

Question 24

What happens if we don't close in time?

Accepted Answer

You extend the lock. Extensions typically cost 0.125%–0.375% of the loan, depending on how many days. The best way to avoid this is picking a realistic close date up front.

Question 25

How long does the whole process take?

Accepted Answer

We average 21 days from application to close on a clean file. Industry average is closer to 40. The gap is 90% about how fast we collect documents and how responsive appraisal and title are in your area.

Question 26

What can slow it down?

Accepted Answer

Missing documents, gift funds without a paper trail, self-employment tax return quirks, appraisal delays, HOA questionnaires, and last-minute credit changes (do not buy a car mid-file — we're begging you).

Question 27

How long does a refinance take?

Accepted Answer

Usually 20–30 days. Slightly slower than purchases only because there's no seller pressure to move. Rate/term refis with a PIW can close in under two weeks.

Question 28

Can I close faster if I have to?

Accepted Answer

Sometimes — a fully underwritten pre-approval, a PIW-eligible property, and quick title turn can get you to the table in under two weeks. Worth talking through before you make an aggressive offer.

Question 29

What's the standard document list?

Accepted Answer

Two years of W-2s, two most recent pay stubs, two months of bank statements (all pages, including blanks), a driver's license, and the last two years of tax returns if you're self-employed or have variable income. Add divorce decrees, bankruptcy discharge papers, or child support docs where they apply.

Question 30

Why 'all pages' of bank statements?

Accepted Answer

Underwriters need to see the sequence is complete — no page 4 of 7 missing. Even a blank disclosures page counts. It's tedious. It's non-negotiable.

Question 31

Do I need to explain every large deposit?

Accepted Answer

It depends on the loan program. For conventional loans (Fannie Mae/Freddie Mac), a 'large deposit' is any single deposit that exceeds 50% of your total monthly qualifying income — that's the threshold that triggers documentation. For FHA loans, the threshold is different and much lower: any deposit exceeding 1% of the property's purchase price or appraised value (whichever is lower) must be sourced. Either way, anything that gets flagged is usually fixable with a one-line letter of explanation plus a paper trail — tax refunds, gift funds, sold-item payments, and transfers between your own verified accounts are all normal and workable. What you want to avoid is unexplainable cash deposits with no paper trail.

Question 32

What about self-employed borrowers?

Accepted Answer

Two years of personal and business tax returns, YTD P&L (sometimes CPA-prepared), and business bank statements. If tax returns don't tell your story, we have bank-statement and P&L-only programs — that's the whole point of Alternative Income loans.

Every question you'd actually ask.

Down payments

Credit score

Pre-qualification vs pre-approval

Closing costs

PMI & MIP

Rate locks

Timelines

Documents you'll need

Ask us the one we didn't put on the page.