Mortgage FAQ

Lenders look at your debt-to-income ratio (DTI) — your total monthly debt payments divided by your gross monthly income. Most loan programs want that number at or below roughly 43–50%, depending on the program and your overall profile. But "what you qualify for" and "what feels comfortable" are two different numbers. I'll help you find the payment that fits your real budget, not just the maximum.

A pre-qualification is a quick estimate based on what you tell me. A pre-approval means I've actually reviewed your credit, income, and assets and can issue a letter stating how much you're approved to borrow. Sellers and agents take pre-approvals seriously — pre-qualifications, not so much. If you're actively shopping, get pre-approved.

Typically 60–90 days. If your search runs longer, we just refresh your documents — it's quick.

The basics for most borrowers:

• Last 30 days of pay stubs
• Last 2 years of W-2s (or 2 years of tax returns if self-employed)
• Last 2 months of bank statements
• Photo ID
• Statements for any retirement or investment accounts you'll use for the down payment

I'll send you a personalized checklist once we talk — everyone's situation is a little different.

It depends on the loan type. Conventional loans generally start around 620, FHA can go lower, and VA and USDA don't set a hard minimum, though most lenders look for 580–620. A higher score gets you a better rate, but a lower score doesn't automatically mean "no." Let's look at your actual numbers before you count yourself out.

A mortgage inquiry is a small, temporary dip — usually a few points. And credit bureaus treat multiple mortgage inquiries within a short window (generally 14–45 days) as a single inquiry, so shopping lenders won't stack up against you.

No. That's one of the most common myths in the business. Many conventional and FHA loans require only a low minimum down payment, and VA and USDA loans offer no-down-payment options for eligible buyers. Twenty percent lets you skip mortgage insurance, but plenty of people buy with far less. Ask me what your options look like.

Yes. MSHDA (Michigan State Housing Development Authority) offers down payment assistance that can be layered with FHA, conventional, and other loan types for buyers who meet the income and purchase-price limits. There are also local and employer programs depending on where you're buying. Ask me — I work with these regularly.

Closing costs are the fees to actually complete the loan — appraisal, title, lender fees, prepaid taxes and insurance, and so on. A reasonable planning number is 2–5% of the purchase price. In some cases the seller can contribute toward your closing costs, and there are lender credit options that trade a slightly higher rate for lower upfront cash.

Private mortgage insurance (PMI) protects the lender when you put down less than 20% on a conventional loan. It's a monthly cost added to your payment. You can avoid it with 20% down. On conventional loans, you can request cancellation once you've paid the balance down to 80% of the home's original value, and it drops off automatically at 78% — but "original value" is the key phrase. That automatic drop is based on your purchase price (or original appraisal) and your regular payment schedule, not on how much the home has appreciated. If rising values have pushed your equity past 20%, you can request cancellation with a new appraisal, but you have to ask — it won't happen on its own.

FHA loans have their own mortgage insurance (MIP), and here's the part that surprises people: on most FHA loans it stays for the life of the loan unless you put at least 10% down. That's why a lot of FHA buyers end up refinancing into a conventional loan later once they have equity. I'll walk you through the tradeoffs.

Yes, on most loan programs. The gift usually needs to come from a family member and be documented with a gift letter and a paper trail showing the transfer. Let me know early so we can handle the paperwork cleanly.

• Conventional: Not government-backed. Best pricing for strong credit, with low-down-payment options available. Mortgage insurance can be canceled once you build enough equity.
• FHA: Government-insured and more flexible on credit, with a low minimum down payment. Mortgage insurance typically stays for the life of the loan.
• VA: For eligible veterans, active-duty service members, and some surviving spouses. No down payment required and no monthly mortgage insurance.
• USDA: For homes in eligible rural and suburban areas with income limits. No down payment required.

There's no "best" loan — there's the best loan for you. That's the conversation I'd rather have than the sales pitch.

Any loan above the conforming limit set by the FHFA. For 2026, that limit is $832,750 for a single-family home in most of the country, including all of Michigan. Loans above that follow jumbo guidelines, which typically mean higher credit and reserve requirements.

A fixed-rate loan locks your rate and principal-and-interest payment for the life of the loan — predictable and simple. An ARM starts with a lower fixed rate for a set period (often 5, 7, or 10 years), then adjusts. ARMs can make sense if you're confident you'll sell or refinance before the adjustment. If you plan to stay put, fixed is usually the safer bet.

Your credit score, down payment, loan type, loan amount, property type, and whether it's your primary residence all factor in — along with where the market is that day. Rates move daily, sometimes more than once. That's why I don't quote a rate until I know your scenario.

A rate lock guarantees your rate for a set period (commonly 30–60 days) while your loan closes, protecting you if the market moves up. The natural follow-up is "what if rates drop after I lock?" A standard lock holds in both directions — that's the trade for the protection. Some situations allow a float-down option to capture a lower rate before closing; ask me what's available for your loan, and we'll talk through the right time to lock based on your closing date and what the market is doing.

Discount points are prepaid interest — you pay more at closing to get a lower rate. Whether it's worth it depends on how long you'll keep the loan. I'll run the break-even math with you so you can decide with real numbers.

Most purchase loans close in 30–45 days from an accepted offer. A well-prepared file with quick document turnaround can move faster. Refinances are often similar or a bit quicker.

Roughly: application → rate lock → appraisal ordered → underwriting review → conditional approval (they may ask for a few more items) → clear to close → closing disclosure (you'll get it at least 3 business days before closing) → signing day.

An appraisal is an independent opinion of the home's value, ordered to make sure the loan amount is supported. If it comes in below the purchase price, you have options: renegotiate with the seller, cover the difference, or in some cases walk away under an appraisal contingency. It's not common, but I'll help you navigate it if it happens.

Don't open new credit accounts, finance a car or furniture, change jobs, make large unexplained deposits, or move money between accounts without telling me. Any of these can delay or derail an approval. When in doubt, call me first.

Your monthly payment usually includes more than principal and interest — it also includes a slice of your property taxes and homeowners insurance. That money sits in an escrow account, and the servicer pays those bills when they're due. It's why your payment is often quoted as "PITI": principal, interest, taxes, and insurance. If your loan has mortgage insurance (PMI or FHA MIP), that's collected monthly too — so your real payment is PITI plus MI. Keep that in mind if you've been running numbers on a basic online calculator that only shows principal and interest.

When it saves you money or accomplishes something specific — a lower rate, a shorter term, dropping mortgage insurance, or pulling cash out for a project. There's no magic rate drop that makes it automatic. I'll run the numbers with you honestly, including the cost to refinance and how long it takes to break even.

Almost always, yes — most loans today have no prepayment penalty. Even one extra payment a year toward principal can knock years off a 30-year loan.

Contact your servicer right away. Options like forbearance or a loan modification exist, but they work best when you reach out early. And you can always call me — I'll help you figure out who to talk to.