Common questions, answered honestly.

30–45 days typical from formal application to closing. Refinances run 25–40 days. Streamline programs (FHA Streamline, VA IRRRL) can close in 20–30 days. The biggest variable is appraisal scheduling in busy markets. See Closing Timeline for a step-by-step breakdown.

Pre-qualification is a quick estimate (soft credit pull). Pre-approval is verified — hard credit pull, documented income and assets — and carries real weight with sellers. For serious house hunting, get pre-approved.

Yes — and you should. Rate locks run 30, 45, or 60 days. Floating the rate is gambling. If your loan closes faster than expected, the lock holds with no penalty. Long extensions can carry a fee, so target a realistic close date.

Two years W-2s, two recent paystubs, two months of bank statements (all accounts), two years tax returns if self-employed, and a copy of the purchase contract if buying. See the Documents Checklist for the full list, including special items for VA, USDA, gift funds, and self-employed borrowers.

No. FHA: 3.5% down. Conventional: 3% down with first-time buyer programs. VA and USDA: 0% down. Twenty percent only matters for eliminating PMI on a Conventional loan— everything else is myth. The right down payment depends on the program, your reserves, and how long you plan to stay.

Conventional PMI automatically cancels at 78% LTV based on the original amortization schedule, or by request at 80% LTV with a current appraisal. FHA MIP at low down payments is permanent — the only escape is to refinance into a Conventional loan once you have equity. See Glossary for the LTV definitions, and Removing PMI for the request process.

Yes — DPA programs (down-payment assistance) exist in 50 states with grants, forgivable loans, or deferred-payment seconds. Often $5K-$25K toward closing.Eligibility usually depends on income limits, first-time buyer status, and occupancy. Talk to an LO early — some programs require approval before you write an offer.

FHA: 580 minimum (some lenders 500–579 with 10% down). Conventional: 620 minimum, 740+ for the best rates. VA: typically 580+, with no VA-imposed minimum — lender overlays drive the floor. Higher FICO equals a better rate, and the steps between 680, 720, and 760 each move pricing.

Conventional caps at 50% with a strong file, FHA stretches to 57% with comp factors, VA uses residual income (no fixed cap), USDA caps at 41%. Compensating factors — high FICO, reserves, low LTV, stable employment — extend the caps. If your DTI is borderline, get an LO to model it before assuming you don't qualify.

Same-field job changes within 12 months are usually fine. Different-field changes need a 2-year history in the new field for guideline approval. Disclose any change upfront— underwriters always discover them, and a surprise late in the process is the worst time to deal with it.

Typically 2–5% of the loan amount. A $200K loan equals roughly $4K–$10K in closing costs. Negotiable line items: lender fees, title insurance, settlement. Non-negotiable: recording fees, transfer taxes, appraisal. The Loan Estimate breaks each one out by category.

Yes — seller concessions are common. Caps by program: Conventional 3–6%, FHA 6%, VA 4%, USDA 6%. Negotiate them into the offer rather than after acceptance, when you have less leverage. A higher purchase price with seller credits often beats a lower price with no credits when cash-to-close is the constraint.

Final binding document showing exact closing costs, monthly payment, and cash-to-close. Must be issued 3 business days before closing. Compare it line-by-line against your initial Loan Estimate; any material change (rate, loan type, prepayment penalty) restarts the 3-day clock. See Glossary for the regulated tolerance categories.

Yes — anytime. No prepayment penalty on standard mortgages. Run the break-even math: closing costs divided by monthly savings equals the months until you're ahead. Rule of thumb: a 0.75% rate drop is worth a serious look, but the honest answer depends on closing costs and how long you plan to hold the loan.

No penalty on standard fixed-rate mortgages. Even small extra principal payments(e.g., $100/month) save thousands over the life of the loan. Some borrowers pay biweekly to add one extra payment per year; others target lump-sum principal in years when income spikes. Either approach works — consistency matters more than mechanism.

Submit a written request to your servicer when you reach 80% LTV (estimated value). They'll require a current appraisal at your cost ($500–$700). At 78% LTV based on the original amortization schedule, cancellation is automatic. FHA MIP at low down payments is a different story— it's permanent, and only refinancing removes it.