1. What is the difference between pre-qualification and pre-approval?

A pre-qualification can provide an initial estimate based on information you provide about your income, assets, debts, and other financial factors.

A pre-approval generally involves a more detailed review of your financial information and credit. Neither is a final loan approval, and final approval is subject to additional requirements, including verification of information, underwriting, and property-related conditions.

Learn more about the Loan Process

2. What documents do I need for my loan application?

The documents you'll need can vary depending on your financial situation and loan program. You may be asked to provide information related to your income, employment, assets, debts, and the property you're financing.

Your loan officer may request additional documentation throughout the process.

View our Application Checklist

3. How does my credit affect my mortgage?

Credit is one of several factors lenders may consider when evaluating a mortgage application. Your credit history and credit scores can provide information about how you've managed credit and debt over time.

Lenders may also consider factors such as your income, assets, debts, and the requirements of the loan program.

Learn more about Credit

4. What is an appraisal?

An appraisal is an independent estimate of a property's value. Depending on the loan and property, an appraisal may be required as part of the mortgage process.

Learn more about Appraisals

5. What is Private Mortgage Insurance (PMI)?

Private Mortgage Insurance (PMI) may be required on certain conventional loans, often when the down payment is less than 20%. PMI protects the lender if the borrower defaults on the loan.

Requirements and costs can vary depending on the loan.

Learn more about Private Mortgage Insurance

6. What is an APR?

The Annual Percentage Rate (APR)represents the cost of borrowing expressed as a yearly rate. Unlike the interest rate alone, APR may include certain fees and costs associated with the loan.

APR can be useful when comparing mortgage offers, but it is not the same as your interest rate and does not represent your monthly payment.

7. What does it mean to lock an interest rate?

A rate lock allows an eligible borrower to secure an interest rate for a specified period of time while the loan is in process. The terms and length of a rate lock can vary, so it's important to discuss available options with your loan officer.

Learn more about Rate Locks

8. What happens at closing?

Closing is the final stage of the homebuying process, when required documents are completed and the transaction moves toward funding and transfer of ownership.

Before closing, you'll receive information about your final loan terms, closing costs, any funds needed, and other requirements. Your loan officer and closing or settlement professionals can help you understand what to expect.

Learn more about the Loan Process