A Beginner-Friendly Guide to Financing Your Home
For many buyers, the mortgage is the most intimidating part of buying a home.
You may be wondering:
Who do I call?
What are they going to ask me?
Do I need perfect credit?
How much money do I need?
What documents do I send?
Will they look at my bank account?
What is underwriting?
What is an interest rate?
What does “pre-approved” actually mean?
If you’ve never purchased a home before, these are completely reasonable questions.
You are not expected to already know how a mortgage works.
That’s what your lender and your real estate team are there to help you understand.
My goal is to make sure you enter that conversation prepared, informed and comfortable asking questions.
TOMMY XAVIER NGUYEN
The Good Energy Realtor®
FIRST: WHAT EXACTLY IS A MORTGAGE?
A mortgage is a loan used to purchase real estate.
You contribute some of your own money toward the purchase, depending on the loan structure, and a lender provides the remaining funds.
You then repay that money over time.
A typical mortgage payment may involve:
Principal — repayment of the money you borrowed.
Interest — the cost of borrowing the money.
Property taxes
Homeowners insurance
Mortgage insurance, when applicable.
Your total housing payment may also include an HOA assessment, although that is separate from the mortgage itself.
WHO IS THE LENDER?
The lender is the financial institution or mortgage company evaluating whether you qualify for financing.
You may work with a:
Bank
Credit union
Mortgage lender
Mortgage broker
Builder-affiliated lender
or another qualified mortgage professional.
The person you communicate with may be called a:
Loan Officer
Mortgage Loan Originator
Loan Consultant
Their job is to help determine what financing options may be available to you.
WHAT HAPPENS DURING MY FIRST CONVERSATION WITH A LENDER?
Usually, the first conversation is much less intimidating than buyers imagine.
The lender is trying to understand your financial picture.
Expect questions about things such as:
YOUR INCOME
Where do you work?
How long have you worked there?
How much do you earn?
Are you salaried, hourly, commissioned or self-employed?
Do you receive bonuses, overtime or other income?
YOUR DEBTS
Car loans?
Student loans?
Credit cards?
Personal loans?
Other mortgages?
Child support or other qualifying obligations?
YOUR SAVINGS
How much money do you currently have available?
How much are you considering putting down?
Do you have retirement or investment accounts?
Will anyone be giving you gift funds?
YOUR CREDIT
The lender may eventually obtain your credit report with your authorization.
YOUR HOME-BUYING GOALS
What price range are you considering?
What monthly payment feels comfortable?
Are you buying your primary residence?
How soon are you hoping to purchase?
This is not an interrogation.
It is how the lender begins matching your circumstances with potential financing.
GOOD ENERGY TIP
BE COMPLETELY HONEST WITH YOUR LENDER.
Do not hide:
Debts.
Income issues.
Employment changes.
Previous credit problems.
Large deposits.
Other financial obligations.
A problem that your lender knows about early can often be addressed.
A surprise discovered during underwriting is much harder to deal with.
WHAT DOCUMENTS SHOULD I PREPARE?
You do not necessarily need every document below for your first conversation.
But preparing these ahead of time can make the mortgage process much easier.
Fannie Mae’s current consumer mortgage checklist includes documentation of income, assets and other personal information, and notes that the exact requirements vary according to the borrower.
INCOME DOCUMENTS
Depending on your situation, the lender may request:
Recent pay stubs
W-2 forms from approximately the last two years
Federal tax returns when applicable
1099 forms if applicable
Documentation of bonuses, commissions or overtime
Social Security or pension award letters if applicable
Other documentation supporting qualifying income
Fannie Mae specifically lists recent pay stubs, W-2s, tax returns in applicable cases and 1099s among common mortgage documentation.
IF YOU ARE SELF-EMPLOYED
Expect more documentation.
You may be asked for items such as:
Personal tax returns
Business tax returns
Profit-and-loss statements
Business license
Business bank statements
1099s
and potentially other documents depending on your business and loan program.
Fannie Mae’s consumer checklist specifically identifies profit-and-loss statements and/or business tax returns for business owners and a business license where applicable.
Self-employed does NOT automatically mean you cannot qualify.
It simply means the lender may need more documentation to determine your qualifying income.
ASSET DOCUMENTS
Your lender may ask for statements showing funds in accounts such as:
Checking
Savings
Investment accounts
Retirement accounts
Certificates of deposit
Business accounts where applicable
The lender is trying to verify things such as:
Your down payment.
Closing funds.
Reserves.
And where the money came from.
Fannie Mae lists checking, savings, retirement, investment and certain business accounts among common asset documentation used in the loan process.
PERSONAL INFORMATION
You may also need:
Government-issued photo ID
Social Security number or other applicable identification
Current address
Previous addresses
Employer information
Employment history
and other information needed for the loan application.
Fannie Mae’s current checklist also identifies photo identification, residential history and employer information among commonly requested items.
DOCUMENTS THAT MAY APPLY ONLY TO SOME BUYERS
Depending on your situation, your lender may request:
Divorce or separation documentation
Child-support documentation
Bankruptcy paperwork
Gift letter
Proof of rental history
Lease
Documentation involving another property
Additional explanation letters
This does not mean something is necessarily wrong.
Mortgage underwriting is document-heavy.
The lender needs evidence supporting the information being used to approve your loan.
WHAT IF SOMEONE IS GIVING ME MONEY FOR THE DOWN PAYMENT?
Tell your lender before money starts moving around.
Certain loan programs may allow eligible gift funds.
But the lender may need documentation showing:
Who provided the funds.
Their relationship to you.
The amount.
That the funds meet the applicable loan-program requirements.
Fannie Mae’s consumer document checklist identifies a gift letter as a document that may be needed when gift funds are being used.
Do not simply have a family member deposit $30,000 into your account without discussing it with your lender first.
WHAT IS THE MORTGAGE APPLICATION?
Once you move into the formal application process, the lender gathers your information through a mortgage application.
One commonly used form is the Uniform Residential Loan Application, sometimes referred to as Form 1003. Fannie Mae’s current mortgage requirements identify the Uniform Residential Loan Application as the standard documented loan application for applicable conventional mortgage files.
It generally includes information about:
Income.
Employment.
Assets.
Debts.
Property.
Loan request.
Borrower information.
You don’t need to memorize the form.
Your loan professional guides you through it.
WHAT IS PRE-APPROVAL?
A pre-approval means the lender has evaluated financial information and determined that you may qualify for mortgage financing within certain parameters.
The terminology and depth of review can vary by lender.
A stronger pre-approval may involve verification of:
Income.
Assets.
Credit.
Employment.
Debt.
It is NOT a guarantee that the mortgage will eventually close.
The property still matters.
Your finances still need to remain acceptable.
Final underwriting still has to occur.
WHY DO I WANT A PRE-APPROVAL BEFORE SHOPPING?
Because it helps answer three critical questions:
1. WHAT CAN I QUALIFY FOR?
2. WHAT PAYMENT MIGHT THAT CREATE?
3. WHICH LOAN OPTIONS SHOULD I BE CONSIDERING?
It also allows us to write a more credible offer once you find a home.
I would rather know these answers before you fall in love with a property.
PRE-APPROVED FOR $600,000 DOES NOT MEAN YOU SHOULD SPEND $600,000
This is worth repeating.
The lender determines what they may be willing to lend.
You determine what fits your life.
If you are approved up to $600,000 but feel comfortable buying around $525,000…
then $525,000 may be your real budget.
WILL THE LENDER PULL MY CREDIT?
Generally, credit information is part of mortgage qualification.
Before authorizing anything, ask your lender:
“Will this be a soft credit inquiry or a hard inquiry?”
“At what point do you pull credit?”
“Will you need to pull it again later?”
Never be afraid to ask.
WHAT DOES THE LENDER LOOK FOR ON MY CREDIT?
Your credit history may provide information involving:
Payment history.
Outstanding debt.
Credit utilization.
Collections.
Late payments.
Bankruptcies.
Other credit obligations.
Credit is only one part of mortgage qualification.
Your lender will evaluate it alongside income, debt, assets, loan type and other factors.
Perfect credit is not necessarily required.
WHAT IS DTI?
You’ll probably hear your lender say:
“Debt-to-income ratio.”
Or:
“DTI.”
Debt-to-income ratio compares qualifying monthly debt obligations with qualifying monthly income.
For example:
Monthly qualifying income:
$8,000
Qualifying monthly debts including proposed housing expense:
$3,200
Approximate DTI:
40%
Different loan programs, lenders and borrower circumstances can allow different ratios.
There is no single DTI number every buyer must meet.
Your lender determines the allowable structure for your particular file.
WHAT LOAN OPTIONS MIGHT THE LENDER DISCUSS?
You don’t have to choose a loan before speaking with the lender.
They should help explain the differences.
Common possibilities may include:
CONVENTIONAL
A mortgage that is not insured by FHA or guaranteed by VA.
There are conventional programs with varying down-payment requirements.
FHA
FHA loans are insured by the Federal Housing Administration.
They can be useful for certain buyers because their qualification structure differs from conventional financing.
FHA financing also includes mortgage insurance requirements.
VA
Eligible veterans, active-duty service members and certain other qualified borrowers may be able to use VA financing.
VA loans can provide significant benefits for qualifying borrowers.
Eligibility and qualification should be discussed with a lender experienced in VA financing.
JUMBO
Loans above applicable conforming loan limits may fall into jumbo financing.
These can have different underwriting, reserve, credit and down-payment requirements.
DOWN-PAYMENT ASSISTANCE
Qualifying Nevada buyers may have access to programs designed to help with down payment and/or closing costs.
The Nevada Housing Division currently offers Home Is Possible programs through participating lenders, with eligibility depending on the specific program, income, credit, loan type and other requirements.
Ask:
“Do I qualify for any Nevada down-payment-assistance programs?”
And importantly:
“What are the long-term terms of the assistance?”
Not all assistance programs work exactly the same way.
QUESTIONS YOU SHOULD ASK YOUR LENDER
You do not need to sound like a mortgage expert.
Bring this list with you.
ABOUT QUALIFICATION
How much am I currently qualified for?
What monthly payment does that create?
What price range would you consider comfortable based on the payment I gave you?
What is my current debt-to-income ratio?
Is anything in my financial profile limiting my options?
Is there anything I should improve before buying?
ABOUT THE LOAN
Which loan programs do I qualify for?
Why are you recommending this one?
What down payment does it require?
Does it include mortgage insurance?
How long will the mortgage last?
Is the rate fixed or adjustable?
Is there a prepayment penalty?
Are there any unusual loan features I should understand?
ABOUT THE INTEREST RATE
Ask:
“What is my interest rate?”
Then:
“What is the APR?”
Then:
“Am I paying points to get that rate?”
Those are three different questions.
INTEREST RATE VS. APR
INTEREST RATE
Primarily determines how interest is calculated on the mortgage.
APR
Annual Percentage Rate is a broader measure incorporating certain financing costs.
This is why you may see:
Rate: 5.75%
but:
APR: 6.02%
Do not panic simply because the two numbers differ.
Ask the lender to explain what is creating the difference.
WHAT ARE MORTGAGE POINTS?
Discount points are upfront charges used in some transactions to obtain a lower mortgage interest rate.
You might hear:
“You can buy the rate down.”
That means spending money upfront in exchange for a lower rate.
The important question is:
“How long will it take me to recover what I paid?”
If buying down the rate costs $8,000 but saves you $100 per month:
$8,000 ÷ $100 = 80 months
Approximately 6 years and 8 months.
That simple calculation can help you discuss whether the strategy makes sense based on how long you expect to keep the mortgage.
ASK ABOUT THE TOTAL MONTHLY PAYMENT
Do not ask only:
“What is the mortgage payment?”
Ask:
“What is my estimated TOTAL monthly housing payment?”
You want to understand the estimated amount including applicable:
Principal.
Interest.
Property taxes.
Homeowners insurance.
Mortgage insurance.
HOA.
Other relevant property-related costs.
ASK ABOUT CASH TO CLOSE
This is one of the most important questions.
“Approximately how much cash will I need to complete the purchase?”
That number may include:
Down payment.
Closing costs.
Prepaid expenses.
Other required funds.
minus eligible credits and deposits already paid.
Do not assume:
Down payment = total cash needed.
WHAT ARE CLOSING COSTS?
Closing costs can involve things such as:
Lender charges.
Appraisal.
Title and settlement expenses.
Prepaid insurance.
Escrow funding.
Taxes.
Discount points.
Other transaction costs.
Your exact costs vary.
Ask for an estimate early.
WHAT IS A LOAN ESTIMATE?
This is one of the most important mortgage documents you’ll receive.
After a consumer submits the six required pieces of information constituting a mortgage application for Loan Estimate purposes, the lender generally must provide the Loan Estimate within three business days. Those six items are the borrower’s name, income, Social Security number for credit purposes, property address, estimated property value and desired loan amount.
The Loan Estimate helps you understand estimated:
Interest rate
Monthly payment
Closing costs
Loan amount
Taxes and insurance
Cash required
and important loan features.
GOOD ENERGY RULE
DON’T COMPARE LENDERS USING TEXT-MESSAGE RATES.
“5.75%!”
doesn’t tell you:
How many points you’re paying.
What lender fees exist.
What the APR is.
What the mortgage insurance costs.
What your total closing costs are.
Compare the actual loan structure.
The CFPB specifically encourages consumers to request Loan Estimates from multiple lenders so they can compare financing options.
QUESTIONS TO ASK WHEN COMPARING LENDERS
Ask each lender:
What is the interest rate?
What is the APR?
Are there discount points?
What are your lender fees?
What is my estimated monthly payment?
What is my estimated cash to close?
Is mortgage insurance required?
How long is the rate locked?
Is there a cost to extend the lock?
Can I refinance later without a prepayment penalty?
How quickly can your team close?
Who will communicate with me once I am under contract?
Do you work evenings or weekends if we need an updated pre-approval?
Service matters too.
The cheapest lender on paper isn’t very helpful if they cannot perform within your purchase contract.
WHAT IS A RATE LOCK?
Mortgage rates move.
Once you’re under contract, your lender may offer the ability to lock your interest rate for a certain period.
Ask:
How long is the lock?
When should we lock?
Does it cost anything?
What happens if closing is delayed?
What does an extension cost?
Is there any type of float-down option if rates improve?
Your lender should explain the current choices.
I FOUND A HOUSE — WHAT HAPPENS NEXT?
Once your offer is accepted, send your lender the contract immediately.
Now the lender moves from:
“Could this buyer qualify?”
to:
“Can we approve this buyer AND this property for this particular transaction?”
That process may include:
Updated documents.
Formal loan application information.
Appraisal.
Insurance.
Title information.
Underwriting.
Conditions.
Final approval.
Closing.
WHAT IS UNDERWRITING?
Underwriting is essentially the lender’s detailed review of the loan.
The underwriter verifies whether the borrower and property meet the requirements for the mortgage.
They may review:
Income.
Assets.
Credit.
Employment.
Debt.
Property appraisal.
Insurance.
Source of funds.
Other documents.
This is normal.
Receiving another document request does not automatically mean your mortgage is in trouble.
“WHY DID THEY ASK ME FOR THIS AGAIN?”
Welcome to mortgages.
You may feel like you already sent the document.
Sometimes the lender needs:
A newer statement.
An updated pay stub.
A missing page.
An explanation.
Another verification.
The CFPB advises borrowers to remain responsive during loan processing, monitor communications and provide requested documentation promptly.
Don’t take document requests personally.
Respond quickly and keep your lender informed.
WHAT IS A “CONDITION”?
You may hear:
“The underwriter approved you with conditions.”
That generally means the loan is moving forward, subject to the lender receiving or verifying additional items.
Examples might include:
Updated pay stub.
New bank statement.
Proof of insurance.
Explanation of a deposit.
Employment verification.
Additional documentation.
Conditions are a normal part of many mortgage files.
LARGE BANK DEPOSITS CAN CREATE QUESTIONS
Imagine your normal bank activity is:
$2,000.
$3,000.
$1,500.
Then suddenly:
$25,000 appears.
The lender may need to understand where that money came from.
That is why you should speak to your lender before making unusual financial moves.
DO NOT MOVE MONEY RANDOMLY BETWEEN ACCOUNTS
Buyers sometimes think:
“I’ll organize everything before closing.”
and move:
$20,000 here.
$15,000 there.
Close an account.
Transfer investments.
Deposit cash.
Stop.
Ask the lender first.
Money movement can create additional documentation requirements.
THE MOST IMPORTANT MORTGAGE RULE AFTER PRE-APPROVAL
KEEP YOUR FINANCIAL LIFE BORING.
Until closing:
Don’t buy a car without talking to your lender.
Don’t finance furniture.
Don’t open five new credit cards.
Don’t co-sign a loan.
Don’t quit your job without talking to the lender.
Don’t make mysterious large deposits.
Don’t suddenly take out personal loans.
Your lender may reverify parts of your financial profile before closing.
“BUT I ALREADY GOT APPROVED!”
Pre-approval is not the finish line.
The lender can continue verifying your ability to qualify until the transaction closes.
That is why:
Buy the furniture AFTER the keys.
Not before.
WHAT IS THE APPRAISAL?
The lender generally wants an independent opinion of the property’s value.
The appraisal helps evaluate whether the collateral supports the mortgage being requested.
The appraisal is not the same thing as your home inspection.
Inspection = primarily property condition.
Appraisal = primarily value for the lending transaction.
WHAT IF THE APPRAISAL COMES IN LOW?
Example:
Purchase price:
$500,000
Appraised value:
$485,000
That doesn’t automatically mean the loan is dead.
Possible responses depend on:
Your contract.
The loan.
Available funds.
Seller willingness.
Appraisal provisions.
The specific circumstances.
Your Realtor and lender should discuss the options with you.
WHAT ABOUT HOMEOWNERS INSURANCE?
Your lender will generally require acceptable insurance coverage before closing on a financed home.
You may need to provide your lender with:
Insurance company.
Agent information.
Coverage information.
Proof of the policy.
Shop insurance before the final hour.
The premium can affect your overall monthly housing cost.
WHAT IS “CLEAR TO CLOSE”?
These are beautiful words.
CLEAR TO CLOSE
generally means the lender has satisfied the major remaining underwriting requirements and is preparing the mortgage for closing.
There may still be final administrative items.
But you’re approaching the finish line.
WHAT IS THE CLOSING DISCLOSURE?
For most standard mortgage purchases, the lender generally must provide a Closing Disclosure at least three business days before closing. The document contains final loan terms, projected payments and closing costs.
This is where you compare:
What you expected
with
What you’re actually getting.
COMPARE YOUR CLOSING DISCLOSURE WITH YOUR LOAN ESTIMATE
Check:
Loan amount
Interest rate
Monthly payment
Closing costs
Lender credits
Seller credits
Cash to close
Loan type
Mortgage insurance
If something is different:
ASK WHY.
The CFPB specifically recommends comparing the Closing Disclosure to the earlier Loan Estimate and raising questions before signing.
WHAT DO I SIGN AT CLOSING?
Expect a lot of documents.
Among the important mortgage documents may be:
PROMISSORY NOTE
Your promise to repay the loan according to its terms.
DEED OF TRUST / SECURITY INSTRUMENT
Provides the lender with a security interest in the property.
CLOSING DISCLOSURE
Shows the final financing terms and costs.
There may also be many additional lender, escrow/title and state-required documents.
Ask questions before signing anything you do not understand.
THE ENTIRE MORTGAGE PROCESS — SIMPLE VERSION
1. TALK TO A LENDER
Share your goals and basic financial picture.
↓
2. SUBMIT DOCUMENTS
Income, assets, identification and other requested records.
↓
3. CREDIT & QUALIFICATION REVIEW
Lender evaluates your financing options.
↓
4. GET PRE-APPROVED
Now we know the approximate price/payment range.
↓
5. FIND A HOME
We write and negotiate the offer.
↓
6. SEND CONTRACT TO LENDER
The formal property-specific financing process continues.
↓
7. APPRAISAL + UNDERWRITING
Lender evaluates you and the property.
↓
8. SATISFY CONDITIONS
Provide requested updates and documents.
↓
9. FINAL APPROVAL
You’re approaching closing.
↓
10. REVIEW CLOSING DISCLOSURE
Verify your final loan numbers.
↓
11. SIGN + FUND + CLOSE
And eventually…
🔑 THE KEYS.
YOUR FIRST LENDER MEETING CHECKLIST
If I were sending you to your first mortgage appointment tomorrow, I would tell you:
HAVE AVAILABLE:
Photo ID
Most recent pay stubs
Last two years of W-2s
Recent bank statements
Retirement/investment statements
Tax returns if applicable
1099s if applicable
Information about monthly debts
Employer information
Approximate down-payment amount
Approximate desired monthly payment
Any questions you have
Exact document requirements vary by lender and borrower, but these categories closely match the income, asset and personal documentation commonly identified by Fannie Mae and Freddie Mac for mortgage applications.
SCREENSHOT THIS:
10 QUESTIONS TO ASK YOUR LENDER
1. What loan programs do I qualify for?
2. What are the pros and cons of each?
3. What is my estimated total monthly payment?
4. How much cash will I need to close?
5. What interest rate and APR am I being quoted?
6. Am I paying discount points?
7. Will I have mortgage insurance?
8. Are there any down-payment-assistance programs I should investigate?
9. What could prevent me from getting final approval?
10. What should I absolutely NOT do financially before closing?
If your loan officer can clearly explain those ten things…
you’re already much better prepared.
DO I HAVE TO USE THE FIRST LENDER I SPEAK WITH?
No.
It can be wise to compare financing.
The CFPB recommends requesting Loan Estimates from multiple lenders and comparing the actual terms and costs.
That doesn’t mean you need to contact 15 companies.
But comparing a few well-qualified options can help you understand whether you’re receiving competitive terms and good service.
CHEAPEST DOESN’T ALWAYS MEAN BEST
The lender is part of your real estate team.
Consider:
COST
Rate.
APR.
Fees.
PRODUCT
Does the lender have the right loan program?
PERFORMANCE
Can they meet the closing timeline?
COMMUNICATION
Will they answer when we need something?
EXPERIENCE
Do they understand FHA?
VA?
Down-payment assistance?
Self-employment?
New construction?
Complex income?
A mortgage with a fantastic advertised rate is not very useful if the lender cannot close the loan.
WHAT IF I’M NOT READY YET?
Then the lender conversation can still be incredibly valuable.
Maybe you learn:
Your credit needs some work.
You need three more months of savings.
Paying off one particular debt could help.
Your current income documentation needs more history.
You’re actually ready now.
Knowing is better than guessing.
A good lender should help give you a roadmap rather than simply saying:
“No.”
WHAT IF I’M EMBARRASSED ABOUT MY CREDIT OR FINANCES?
Don’t avoid the conversation because you’re worried someone will judge you.
Mortgage professionals see:
Excellent credit.
Poor credit.
Bankruptcies.
Student debt.
Self-employment.
Job changes.
High income.
Low savings.
Large savings.
Complicated tax returns.
First-time buyers who know absolutely nothing about mortgages.
Your financial situation is information.
We use that information to determine the next step.
MORTGAGE WORDS YOU WILL HEAR
PRE-APPROVAL
An initial lender evaluation of your mortgage qualification.
DTI
Debt-to-income ratio.
RATE
The interest rate charged on the loan.
APR
A broader measure of financing cost.
POINTS
Upfront charges that may be used to obtain a different interest rate.
ESCROW
Depending on context, can refer to the settlement process or an account used to collect and pay items such as property taxes and insurance.
PMI
Private mortgage insurance that may apply to certain conventional loans.
UNDERWRITING
Detailed lender evaluation of the borrower and loan.
CONDITION
Additional documentation or requirement needed by underwriting.
APPRAISAL
Professional opinion of property value for the lending transaction.
RATE LOCK
An agreement to hold an interest rate for a specified period subject to its terms.
CASH TO CLOSE
The amount you are expected to bring to complete the transaction.
CLEAR TO CLOSE
A major milestone indicating the loan is nearing closing after required conditions have been satisfied.
THE GOOD ENERGY APPROACH TO FINANCING
I don’t want your mortgage to feel like:
“The lender said I’m approved, so I guess we’re good.”
I want you to understand:
What you’re borrowing.
What it costs.
What your monthly payment is.
How much cash you’re using.
Which loan you’re choosing.
Why you’re choosing it.
and:
Whether it actually fits your life.
Because getting approved for a mortgage is one thing.
Feeling comfortable paying it is another.
MY ROLE AS YOUR REALTOR
I am not your mortgage lender.
I do not determine whether you qualify for a loan.
I don’t set your interest rate.
And I don’t make underwriting decisions.
But financing affects almost every part of your home purchase.
So my role includes helping keep communication moving between:
You
Your lender
Me
The listing side
Title/escrow
and the other professionals involved.
I also want to understand enough about your financing structure to help us write an offer that makes sense.
Your lender handles the mortgage.
I handle the real estate.
We work together to get you home.
FREQUENTLY ASKED QUESTIONS
Do I need to have a house picked out before speaking to a lender?
No.
For most buyers, speaking with a lender before serious home shopping is the better approach.
Do I need to know which loan I want?
No.
That’s part of what you discuss with the lender.
Do I need perfect credit?
No universal perfect-credit requirement exists.
Qualification depends on your overall financial profile and loan program.
Do I need 20% down?
Not necessarily.
There are qualifying loan programs requiring substantially less than 20% down.
Will the lender see my bank statements?
Mortgage lenders commonly review bank and asset statements to verify funds and qualification.
Why do they need so many documents?
Because mortgages are large, secured loans and lenders must verify the information being used to approve them.
Can I change lenders after getting pre-approved?
Potentially, but changing lenders later can affect timing and other aspects of the transaction.
Discuss it with your Realtor and prospective lender before making a change.
Can I refinance later?
Potentially.
Refinancing depends on future market conditions, qualification, property value and available products.
Never buy a home based on the assumption that refinancing later is guaranteed.
Should I wait until rates fall?
Nobody can guarantee where mortgage rates will go.
Focus on whether the current payment and purchase make sense for you.
THE BOTTOM LINE
Mortgage financing sounds complicated because the industry uses a lot of unfamiliar words.
But your basic responsibility as the buyer is simpler:
Be honest.
Gather your documents.
Ask questions.
Compare your options.
Respond quickly.
Don’t make major financial changes during the transaction.
Understand the loan before you sign it.
You do not need to become a mortgage expert.
You need a team willing to explain things until they make sense.
Calm information.
Serious preparation.
Strong decisions.
Good Energy.
READY TO HAVE THE LENDER CONVERSATION?
If you’re thinking about buying but don’t know where to start, that’s okay.
You can start with me.
We’ll talk about:
Your goals
Your preferred payment
Your timeline
Your general price range
Where you’d like to live
and then I can help you determine the next step and connect you with appropriate lending resources.
TOMMY XAVIER NGUYEN
The Good Energy Realtor®
Nevada Real Estate Salesperson
NV Lic. #S.0204577
Good Energy Realty LLC
📞 725.224.1720
Serving:
Las Vegas • Henderson • North Las Vegas • Boulder City • Southern Nevada
