Good question! A mortgage is a loan you use to purchase a home. It’s a legal agreement in which a mortgage lender pays for your house in full with the expectation that you will repay them back (with interest) over a set period of time. Mortgages allow homebuyers to purchase homes even if they don’t have all the money immediately available to purchase them upfront.

Let’s go over a few more common terms you’ll hear:

• Loan Officer - the mortgage adviser in charge of your file. They’ll help you from beginning to end.

• Loan Partner - the Loan Officer’s right-hand person. They will work closely with you at every step of your loan.

• Interest Rate - The amount of money paid for the ability to borrow money. Expressed in percentage-form.

• Closing - Closing encompasses the final steps in the transfer of property ownership. The buyer signs all final documents and the seller receives funds.

• Credit Score - A number that represents a consumer’s credit worthiness. Lower scores pose a greater risk of default (no longer being able to pay your mortgage). Higher scores tell lenders that you’re less likely to default.

As soon as you start shopping for a new home, one of the most important steps you can take is to get pre-approved for your home loan.

But getting pre-approved is different than getting pre-qualified.

Getting pre-qualified is a pretty straight forward process. Your loan officer will request some standard information about your earnings, assets, liabilities, and run a credit report. After they have your information you’ll receive a ballpark figure of what you might be able to afford when it’s time to make an offer on a new home. It’s useful as a reference, but once you move forward in the loan process, you might find that the final home loan amount is different.

Getting pre-approved means that your mortgage lender has already approved a full loan amount for your home loan. Getting pre-approved will help you stand out among other potential buyers and also lets sellers know you’re serious and you’ll be able to close fast.

A pre-approved loan will give you peace of mind when you’re shopping and a competitive edge when you decide to make an offer on your perfect home.

Our Platinum Approval is one-step better than a regular pre-approval.  It’s different because your file will have been completely reviewed and approved by a certified mortgage underwriter, who is the actual loan decision maker. This means that when you submit offers on homes, sellers can rest assured that you can afford to purchase a home, are credit worthy, and have the required down payment for the loan of your choosing. Your Platinum Approval notifies the sellers that you as a buyer are fully approved and ready to go!

This extra step of being Platinum Approved can be crucial, especially in today’s market, in helping your offer stand out amongst the influx of others! You’ll be one step ahead of most other buyers out there looking for a home! We know that the market is competitive right now, and we want to make sure we are doing everything we can to ensure your offer is set apart so you can land the home of your dreams!

Your loan officer will be able to provide you the best personalized advice, but here are some basic pointers to keep in mind:

• Never, ever miss a payment

• Keep your credit utilization below 30%, if possible

• Don’t close old accounts

• Don’t open new accounts

These are all examples of home loan programs that homebuyers can choose from. We offer all four of these, plus several more options. Let’s take a quick look at what makes each unique. You can learn a lot more about each of these options by visiting our loan program pages.

• Conventional - Lower rates and fees for borrowers making a down payment with good credit

• FHA - Popular with first-time homebuyers due to lower down payment requirements

• USDA - Zero-down options for rural borrowers in small towns

• VA - Competitive rates, zero-down options, and no private mortgage insurance (PMI) requirement for veterans, active service members, and their surviving spouses.

Probably not! There are loan options available that allow for 3.5% or even 0% down.

If you are able to do so, though, a 20% down payment will reduce your monthly payments and the total amount of interest you pay over the life of the loan. But it’s definitely not required for all borrowers.

Fill out a free application to see what percent you could qualify for.

Most of the time, yes! The fact is, with renting, you’ll never have a chance to earn your money back.

But when you buy a house, you’re making steady progress toward owning your property. When your loan term is done, you’re no longer paying a mortgage. That’ll never happen when you rent. Plus, you have the opportunity to sell your home and make some money back.

There are three main factors that come into play when being approved for a mortgage:

• Credit score. Each loan program has a minimum credit score requirement in order to qualify. Higher credit scores can allow you to qualify for lower interest rates, too.

• Down payment. Some loan programs require you to make a down payment of a certain amount.

• Debt-to-income ratio (DTI). Your debts should only make up a certain percentage of your income, because you’re about to incur a large and important debt by purchasing a home.

These are the credit score ranges that may affect your terms and ability to get approved for a mortgage:

- 300 to 579 - You may not qualify for any mortgage option

- 580 to 620 - This is the mortgage qualification starting point

- 720 to 850 - You may be eligible for the best rates and terms

Most homeowners are recommended to live at least three to five years in a home before selling it. Your home will most likely appreciate in value during this time, and you’ll have some equity in it. The goal is to offset transaction costs such as agent commissions and closing costs.

That’s up to you. While a 15-year mortgage will save a lot on interest compared to a 30-year, the monthly payments will be much higher. A 30-year mortgage would allow a family to move into a nicer home and still afford the monthly payments. Your mortgage adviser can help you compare the pros and cons of both options.

Lenders may have their fees structured or named differently from one another, but you should generally expect the following:

• Origination fee

• Office admin fees

• Document preparation fees

• Appraisal fee

• Lender-required home inspections (roof, sewage, pest)

• Credit report fee

After applying, you can ask us for a sample closing sheet with fees included.

Online lenders have their merits, but when it comes to personalized service and speed to respond, an experienced local mortgage adviser can’t be replaced.

If you have a trickier financial situation, an online lender’s algorithm may turn you down without exploring every avenue to make your dream of homeownership a reality. And sometimes, the opposite happens with online-only lenders - borrowers will get approved even when they shouldn’t be.

Most homebuyers would agree that finding a perfect mix of convenient technology and face-to-face human help is the best way to a smooth closing - and luckily we offer both!

By definition, an escrow is a bond, deed, or other document kept safe by a third party and taking effect only when a specified condition has been fulfilled.

In the mortgage space, we use escrow accounts for two different purposes. The first time you use an escrow account is after an offer is accepted. You put cash into an escrow account to prove you’re serious about the purchase. Your money is kept safe in escrow, and then it’s released to the home seller when your loan funds.

The second time you’ll use an escrow account is for the payment of taxes and insurance after you purchase the home. Each month, you’ll pay a portion of your annual property taxes and homeowners insurance into the account. When taxes and insurance are due, your mortgage company will draw funds out of the account and pay them for you.