Mortgage FAQs.

A loan officer can explain mortgage choices, discuss costs, and help you understand the application requirements. Bring your budget, timing, and questions so the conversation starts with what matters to you. The lender makes the credit decision after reviewing the required information.

Banks also have loan officers. When comparing providers, ask which loans they can offer and compare written estimates; a job title or access to more options does not guarantee better pricing. Learn who does what in a mortgage.

Yes. A general conversation about mortgage terms and your plans can come before an application. Preapproval or a loan application usually involves a credit review, so ask when it will happen and whether the inquiry will be hard or soft before proceeding. A hard inquiry can affect your credit scores; a soft inquiry does not.

Checking your own reports does not affect your scores. For ways to prepare and correct errors, see our Credit Readiness guide.

Start with identification, recent income records, bank or investment statements, and information about your debts and funds for closing. Depending on your situation, the lender may request pay statements, W-2s, tax returns, gift documentation, or business records. For a refinance, have your current mortgage statement and information about any second mortgage or home equity line ready.

The exact checklist depends on the lender and program. Ask which records are needed and how to send them securely; keep complete copies, including all statement pages. The purchase application checklist and refinance application guide explain the next steps.

Yes. Bring your Loan Estimate to an AMCFG consultation. We’ll do our best to match a competing rate through the options available to you, but a match is not guaranteed. We support the choice that works best for your budget and goals, even if that means another lender.

Compare the loan amount, term, rate, points or lender credits, fees, mortgage insurance, full payment, and cash to close. Check the quote dates and whether the rates are locked so differences have context.

Lower estimated taxes or insurance do not necessarily make a loan less expensive. Ask about differing assumptions and compare the loan costs over the time you expect to keep it. See how to compare Loan Estimates.

No. Some conventional and FHA loans allow less than 20% down, and eligible VA or USDA borrowers may qualify without a down payment. Each program has conditions: VA eligibility and available entitlement matter, while USDA has household-income and property-location requirements. The lender must also review your finances and the home.

A smaller down payment leaves more savings available but means borrowing more, and mortgage insurance or program fees may apply. You still need to plan for closing costs. Compare purchase loan types and their tradeoffs.

Preapproval is useful before you shop seriously: it gives you an indication of potential borrowing capacity and helps a seller assess your offer. It is conditional, usually involves a credit check, and is not final loan approval. The lender still needs to complete its borrower and property review.

Read the letter’s conditions and expiration date, and keep your own comfortable budget in mind even if the stated amount is higher. Lenders use “prequalification” and “preapproval” differently, so ask what was actually verified. See where preapproval fits in buying a home.

There is no single credit-score requirement for every mortgage. Requirements vary by loan program and lender, and your score is only part of the review. Income, monthly debt obligations, available funds, and the property also matter. Student loans or other existing debts do not automatically rule you out, but their payments can affect how much you qualify to borrow.

A score in a consumer app may differ from the score used for your mortgage. Review your reports for errors and discuss your full situation before assuming you do or do not qualify. Explore credit scores and mortgage readiness.

Yes, self-employed borrowers can qualify, but the lender must establish income it can rely on for repayment. Depending on the program and your business, that may involve personal and business tax returns, current financial statements, and a review of income history and business expenses. Business revenue is not automatically the income used to qualify.

If you plan to use business funds for closing, discuss that early because the lender may need to assess the effect on the business. Ask for the documentation requirements for your situation; there is no single checklist that covers every self-employed borrower.

The mortgage calculator estimates fixed-rate home-purchase costs for educational Conventional, FHA, and VA scenarios. It combines principal and interest, applicable mortgage insurance, and the property taxes, homeowners insurance, and HOA dues you choose to include. Unknown or excluded costs are labeled, and an incomplete estimate is shown as a partial subtotal.

The starting values are hypothetical, not current market rates or an AMCFG quote. Changing the term or program keeps your selected interest rate. The tool shows certain upfront program fees, but it does not calculate a complete cash-to-close amount, APR, or eligibility. Allow separately for maintenance, utilities, and other housing expenses.

The interest rate describes the charge for borrowing; the annual percentage rate (APR) also includes certain loan fees and other financing charges. APR gives a broader view of borrowing cost, but it does not tell you everything about the payment or the cash you need at closing.

Compare loans with similar terms and look at the individual fees too. An adjustable-rate mortgage’s APR does not show its maximum possible rate. Paying points upfront may lower the rate, while lender credits often trade a higher rate for less cash due upfront. Learn about rates, APR, points, and credits.

No, neither one by itself confirms that your rate is locked. A rate lock has a specified period and conditions. Check the lock status on your Loan Estimate and ask for the expiration date, any fees, and what happens if closing is delayed or market rates fall.

Even with a lock, changes to your loan amount, credit, verified income, or property value can affect the terms. Read the rate-lock explanation before deciding when to lock.

Your down payment is your contribution toward the purchase price; closing costs are the charges and upfront expenses associated with the loan and transaction. They can include lender and title fees, an appraisal, recording charges, prepaid interest or insurance, and an initial escrow deposit for future tax and insurance bills.

Cash to close is the amount you still need to bring after accounting for the down payment, costs, deposits already paid, allowed credits, and other adjustments. For a refinance, payoffs and any financed costs also affect the calculation. See how closing costs and cash to close fit together.

It depends on the program and your down payment or equity. Conventional purchase loans typically require private mortgage insurance (PMI) with less than 20% down. FHA loans have different mortgage-insurance premiums and rules. VA loans have no monthly mortgage insurance, although a funding fee may apply unless you qualify for an exemption.

Mortgage insurance protects the lender if you do not repay; it does not replace homeowners insurance or your payment obligation. Ask how premiums are paid and whether and when they can end. PMI cancellation rules do not apply to every type of mortgage insurance. Compare conventional costs with the FHA overview.

Refinancing may make sense when the new loan’s benefits justify its costs for your goals and the time you expect to keep it. You might seek a different rate, a shorter repayment term, a more stable rate structure, or access to equity. Compare each proposal with keeping your current mortgage.

A lower payment alone does not prove savings: extending the term or financing fees can increase total interest. Look at closing costs, the new balance, remaining versus new term, and how long any savings take to recover the costs. The Home Refinance guide walks through that comparison.

No. Those costs are commonly covered through lender credits in exchange for a higher rate, or added to the loan balance when the program allows it. That can reduce what you pay upfront while increasing what you pay over time.

Ask which charges are covered and which still require cash, including prepaid expenses and escrow. Compare written options for paying upfront, financing eligible costs, or using credits against how long you expect to keep the loan. Explore ways to pay refinance costs.

A cash-out refinance replaces your mortgage with a larger loan, with money available to you after the existing loan and transaction costs are accounted for. The amount available depends on the home’s value, debts secured by it, the program’s limits, and your qualifications. You generally cannot borrow all of your equity.

You are taking on more debt secured by your home, potentially at a different rate for the entire new loan. Using it to repay credit cards moves that debt against your home, which could be lost if you cannot repay. Compare costs, the repayment period, and equity left. Review equity goals and refinance choices.

A streamlined refinance may reduce some requirements, but it still has eligibility rules, lender review, and costs. For example, FHA Streamline is for an existing FHA-insured loan and has both credit-qualifying and non-credit-qualifying paths. A VA Interest Rate Reduction Refinance Loan (IRRRL) replaces an existing VA-backed loan and has its own requirements.

Do not assume credit documentation or an appraisal will be waived for your situation. Confirm the lender’s requirements and whether the new loan provides the required benefit. These are different paths from taking substantial cash out. See the FHA Streamline and VA IRRRL overviews.

Not always. Many refinances secured by your primary home have a three-business-day right to cancel after signing and receiving the required disclosures and cancellation notices. When that right applies, funds generally cannot be released to you until the period ends and the lender is satisfied you have not cancelled.

Exceptions include certain refinances with the same creditor; purchase loans generally do not have this federal cancellation right. Confirm your specific deadline and funding date with the lender and settlement agent. Keep making payments on your existing mortgage until payoff is confirmed. Read about signing and cancellation rights.

The underwriter needs enough current information to verify your finances and determine whether the loan meets the lender’s requirements. Requests may clarify income, explain a deposit, replace an outdated statement, or address a property issue. A request by itself is not a denial, and a conditional approval still has requirements to satisfy.

Send complete records through the agreed secure channel, and tell your loan officer about changes to employment, debts, or funds for closing. New borrowing or large transfers can require additional review. Learn what happens in underwriting.

No. An appraisal helps the lender evaluate the property’s value for the loan; a home inspection helps you understand its condition and possible repairs. An appraisal is not a substitute for your own inspection, even if the appraiser notes property concerns.

If the value is lower than expected or repairs are required, the financing or closing schedule may need to change. Discuss the results with your loan officer and real estate agent, and review your contract deadlines before deciding what to do. See how property review fits into the purchase.

For most home-purchase and refinance mortgages, the lender must deliver or mail a Loan Estimate within three business days after receiving six application items: your name, income, Social Security number for a credit report, property address, estimated property value, and requested loan amount. Verifying documents cannot be required first. Use the lender’s secure application process for sensitive information.

You must receive the Closing Disclosure at least three business days before closing. Compare its final terms, costs, and cash to close with your latest estimate and resolve questions before signing. These forms do not themselves confirm final approval; reverse mortgages and some other loans use different disclosures. See what to check before closing.

There is no single closing timeline that fits every mortgage. The application, lender review, property valuation, title work, insurance, and required disclosures all affect the schedule. A purchase also depends on the contract and coordination with the seller.

Share your target date early and ask what remains outstanding, who handles it, and whether your rate lock covers the expected closing. Respond promptly to requests, but do not treat a target date as guaranteed. The Home Purchase and Home Refinance guides show how the stages fit together.

You pay the mortgage servicer identified in your payment instructions, which may be a different company from the one that arranged or funded your loan. Confirm the first payment’s due date, amount, and destination before setting up automatic payments. Your servicer handles payment and escrow questions.

Servicing can transfer to another company; review transfer notices and update payment arrangements as instructed. Even with a fixed interest rate, your total payment can change if taxes, insurance, or escrow amounts change. Understand lenders and servicers.