Frequently Asked Questions

Common requests may include identification, income records, bank or asset statements, employment information, housing history, and documents related to the property or transaction. Requirements vary, and additional documentation may be requested during processing. See the Loan Process for a practical overview.

There is no single down-payment amount for every mortgage. It depends on the loan program, property type, occupancy, purchase price, borrower qualifications, and other factors. A smaller down payment may be possible for some programs, but it can affect mortgage insurance, pricing, and the monthly payment.

A lender may review credit history, income, employment, assets, existing debts, available funds, loan purpose, property details, and applicable program guidelines. No single factor determines every decision, and requirements vary among loan programs.

One point equals one percent of the loan amount. Discount points are paid in exchange for a lower interest rate. Lender credits generally work in the opposite direction: accepting a higher rate may reduce some upfront closing costs. Compare the rate, monthly payment, upfront cost, and how long you expect to keep the loan.

The interest rate helps determine the interest charged on the loan. Annual Percentage Rate (APR) is a broader comparison measure that reflects the interest rate plus certain loan costs. APR is not the same as your interest rate or monthly payment, and it is most useful when comparing similar loan offers.

A rate lock is an agreement that holds a specified interest rate for a defined period, subject to its terms and no material changes to the application. Ask when the lock expires, whether there is a fee, what happens if closing is delayed, and whether any extension or float-down option is available.

Closing costs may include lender charges, points, appraisal and other third-party services, title and settlement charges, government fees, prepaid interest, homeowners insurance, and initial escrow deposits. Review the Loan Estimate and Closing Disclosure, and confirm final payment instructions through a trusted, verified contact.

An appraisal is an independent opinion of a property’s value used in the lending decision. It is different from a home inspection and does not guarantee the property’s condition or future value. The lender may require additional property reviews depending on the transaction or program.

Mortgage insurance generally protects the lender if the borrower does not repay the loan. It may be required depending on the loan program, down payment, or available equity. Its cost, duration, and cancellation rules vary, so review the terms for the specific mortgage.

Refinancing may support goals such as changing the rate or term, adjusting the payment structure, or accessing equity. Compare the new loan’s costs and terms with your existing mortgage, including the estimated break-even period. A lower monthly payment alone does not always mean a lower total cost. Visit Home Refinance for more considerations.

Before closing, review the final terms and costs in your Closing Disclosure and ask about anything you do not understand. At closing, required documents are signed and verified funds are provided according to the settlement agent’s confirmed instructions. Funding, recording, and when keys are released can vary by location and transaction.