Frequently Asked Questions

Mortgage Questions, Answered

Honest, plain-English answers to the questions we hear most often, from first-time buyers, refinancers, and California real-estate investors. Can't find your question? Just ask us.

01Buying a Home

How much money do I need to buy a home?

It depends on the loan program. VA and USDA loans allow 0% down, FHA requires 3.5%, and conventional loans can be as low as 3% for qualified first-time buyers. You'll also need 2–4% for closing costs.

What credit score do I need?

FHA accepts scores as low as 580 (sometimes 500 with 10% down). Conventional loans typically want 620+. The best rates kick in at 740+.

What's the difference between pre-qualified and pre-approved?

Pre-qualified is a quick estimate based on what you tell us. Pre-approved means we've verified your finances and you have a real letter sellers will take seriously.

How long does pre-approval take?

Same day in most cases, once you submit basic income, asset, and credit info. The letter is typically valid for 60–90 days.

How much are closing costs?

Closing costs typically run 2–4% of the purchase price and include lender fees, title, escrow, taxes, and prepaid interest. We give you a clear breakdown upfront.

Can I buy a home if I'm self-employed?

Yes. We offer bank statement and DSCR programs designed specifically for self-employed buyers and investors.

02Refinancing

When does refinancing make sense?

Generally, when you can lower your rate by 0.5–1% or more, want to shorten your term, or need to access equity. We'll run the break-even math for you.

How long does a refinance take?

Most refinances close in 3–4 weeks from a complete application, depending on appraisal and underwriting timelines.

What does a refinance cost?

Closing costs typically range from 2–5% of the loan amount. You can sometimes roll them into the loan or take a slightly higher rate for a "no-cost" refi.

Can I do a cash-out refinance?

Yes, if you have sufficient equity. You can use the proceeds for renovations, debt payoff, education, or any major expense.

Will refinancing hurt my credit?

A formal application includes a hard credit pull, which can temporarily drop your score a few points. The initial quote does not.

Should I get a HELOC or a cash-out refi?

If your first mortgage has a low rate, a HELOC usually wins, you keep that rate. If your first-mortgage rate is high, a cash-out refi may be smarter.

03Loan Programs

What's the difference between FHA and Conventional?

FHA has lower credit and down-payment minimums but charges mortgage insurance for the life of the loan. Conventional has stricter requirements but lets you drop PMI once you hit 20% equity.

Who qualifies for a VA loan?

Veterans, active-duty service members, qualifying National Guard / Reservists, and unremarried surviving spouses of service members.

When do I need a jumbo loan?

When your loan amount exceeds conforming limits. In Los Angeles County (2026), that's anything above $1,209,750.

What is PMI and when does it go away?

Private Mortgage Insurance is required on conventional loans with less than 20% down. It can be requested for removal at 80% LTV and automatically drops at 78% LTV.

What's a DSCR loan?

A Debt Service Coverage Ratio loan qualifies based on a rental property's income, not your personal income or tax returns. Popular with real-estate investors.

Are FHA loans only for first-time buyers?

No. Anyone can use an FHA loan as long as it's for a primary residence and they meet the program's requirements.

04Rates & Pricing

How often do mortgage rates change?

Mortgage rates can move multiple times within a single day. They're driven primarily by the bond market and shift as economic data and policy expectations change.

What's the difference between rate and APR?

The interest rate is the cost of borrowing the principal. The APR includes lender fees and shows the loan's total cost in percentage form.

Should I lock my rate or float?

If rates are stable or rising, lock to protect yourself. If they're clearly trending down and you have time, floating may pay off. We help you decide.

What are points?

One discount point equals 1% of your loan and typically lowers your rate by about 0.25%. Whether they're worth it depends on how long you keep the loan.

How do I get a personalized quote?

Use our rate quote request or call us. We send a real rate sheet, usually within 1-2 business days.

Why are my actual rates different from advertised rates?

Published rates assume a "perfect" borrower. Your actual rate depends on credit, down payment, loan size, property type, and occupancy.

05The Loan Process

What documents will I need?

Photo ID, recent pay stubs and W-2s (or tax returns / bank statements if self-employed), 2 months of bank/asset statements, and credit authorization. Full list sent at application.

How long does closing take?

Most loans close in 21–30 days from a complete application. Jumbo and complex files may take 30–45 days.

What is an appraisal?

An independent valuation of the property used to confirm the loan amount is supported by the home's value. Ordered by the lender after you apply.

Can I switch lenders mid-process?

Yes, but you'd typically have to restart your application, re-pull credit, and order a new appraisal. Get the right lender at the start.

What happens after I sign closing docs?

On purchases, funds are wired, title records the deed, and you get the keys. On refinances, there's a 3-day right of rescission before the loan funds.

Do you offer loans outside California?

We're licensed in California. For purchases outside California, we can refer you to a trusted partner lender.

Still Have Questions?

Call, text, or email, we respond within 1-2 business days during office hours.

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