FAQs
Buying a home is one of the biggest investments most of us will make in our lifetime. Not surprisingly, the path to homeownership can be fraught with anxiety, doubt and uncertainty. To help overcome these challenges and help you be "in the know", we have provided the answers to some of the most frequently asked questions from borrowers navigating the loan process.
General Mortgage
What should buyers know about buying a home?
Local market conditions, taxes, and insurance requirements vary. Working with a local lender helps you navigate these factors confidently. Please contact one of our loan originators to see what this looks like for you.
How much home can I afford?
Affordability depends on income, debts, credit, down payment, and current interest rates. A lender can help determine a comfortable price range and monthly payment that fits your budget.
Please contact one of our loan originators for a free consultation or feel free to use our mortgage calculators to get a ballpark idea of how much home you can afford.
How much down payment do I need to buy a home?
Down payment requirements depend on the loan type. Some programs allow as little as 3–5% down, while others may offer low-down-payment or assistance options. A larger down payment can reduce your monthly payment, but it isn’t always required to buy a home.
What credit score do I need to qualify for a mortgage?
Credit score requirements vary by loan program, but many borrowers can qualify with scores starting around the mid-600s. Some programs may allow lower scores, while others require higher credit. Your full financial profile—including income, assets, and debt—also plays an important role in approval.
While credit plays an important role in determining how much you will qualify for, it is certainly not the only factor. Indeed your mortgage decision will be based on many factors to include your annual household income, current savings, debt, how much down payment you are able to come up with, whether or not you are a military veteran etc. In addition, there are several programs specifically designed to help clients with limited credit. To know for certain, don't sweat it. Just reach out to one of our Mortgage Originators, and we will help put you on the path to home ownership.
What will my rate be?
Mortgage rates change daily depending on an individual's situation, your credit score, loan type, and the overall climate of the economy. For the most accurate and up-to-date rate options, please contact one of our loan originators for a free consultation.
When can I start looking for a home or start putting offers on homes?
We recommend you get a Conditional Pre-Approval (or a Conditional Pre-Qualification at the very least) so you can start looking for your new home with confidence.
What costs should I expect at closing?
Closing costs typically include lender fees, title services, insurance, taxes, and prepaid items. These costs vary but usually range between 2–5% of the purchase price.
What makes up a mortgage payment?
For most homeowners, a mortgage payment is typically made up of the following four components: principal, interest, taxes and insurance. The Principal portion of your payment is the amount that pays down your outstanding loan amount. The Interest is the cost of borrowing money. Additionally, some loan programs will require a Private Mortgage Insurance. When required, this will be included in your monthly mortgage payment amount.
How do property taxes and insurance affect my mortgage payment?
Property taxes and homeowners insurance are typically included in your monthly payment. Rates vary by location and can impact overall affordability. Please contact one of our loan originators to see what taxes and insurance look like in your area.
What is the difference between Conditional Pre-Qualification and Conditional Pre-Approval?
The Conditional Pre-Qualification process is quick and relies only on the information the borrower provides to the lender. This process does not involve credit checks or a full financial analysis by the lender, and is usually a first step to get a general feel of how much a borrower might be able to afford. It is not binding as it precedes income verification and other critical steps in the loan approval process.
The Conditional Pre-Approval process, on the other hand, takes longer and is the formal process wherein all disclosures are made, the borrower provides all required documentation, the lender performs credit checks, income verification and other qualifying steps to confirm credit-worthiness, and then pre-approves the borrower for a specified loan amount. A pre-approval shows sellers you’re a serious, qualified buyer.
Timelines can vary. Prompt communication and complete documentation help keep things moving smoothly.
How quickly can I get conditionally pre-qualified?
The process of Conditional Pre-Qualification takes mere moments. Please click here to get in touch with a Mortgage Originator to start the process.
Timelines can vary. Prompt communication and complete documentation help keep things moving smoothly.
What documents are required to apply for a mortgage?
Most mortgage applications require income documentation (pay stubs or tax returns), bank statements, identification, and authorization to review credit. Additional documents may be needed depending on your employment type and loan program.
Can I buy a home with little or no money down?
Yes, depending on eligibility. Some loan programs allow low or no down payment options, especially for qualified buyers using assistance programs.
Please contact one of our loan originators to see what low or no down payment options you qualify for.
What is PMI?
PMI (Private Mortgage Insurance) is designed to protect lenders against loss in the event that a borrower defaults and the home goes into foreclosure. It is usually required when you have a conventional loan and your down payment is less than 20% and/or your equity is less than 20%.
Refinance
When does it make sense to refinance a mortgage?
Refinancing allows homeowners to convert some of the equity they have built into cash. It may make sense to lower your rate, reduce payments, change loan terms, or access equity for a variety of financial needs. Refinance options vary by state and loan program, and eligibility depends on equity, credit, and income. Please contact one of our loan originators to see if a refinance is right for you.
What is a cash-out refinance?
A cash-out refinance allows homeowners to replace their current mortgage with a larger loan and receive the difference in cash, providing flexibility for a variety of financial needs. Please contact one of our loan originators to see if a refinance is right for you.
How much can refinancing save me monthly?
Savings vary based on interest rates, loan terms, and closing costs. A refinance analysis can estimate potential savings. Please contact one of our loan originators to see how much a refinance may save you on your mortgage payments.
Specialized Borrower
Can self-employed borrowers qualify for a mortgage?
Yes. Self-employed borrowers typically provide tax returns, profit-and-loss statements, and business documentation to verify income. Please contact one of our loan originators to find out how we can help get you into your dream home.
How do construction loans work for building a home?
Construction loans provide funds in stages as the home is built. Payments during construction are often interest-only until the home is complete. It's important to work with a loan originator who understands the process. Please contact one of our loan originators for a free consultation.
Veterans
What is a VA home loan and how does it work?
A VA home loan is a government-backed mortgage through the VA home loan program designed to help eligible veterans, active-duty service members, and surviving spouses purchase or refinance a primary residence. VA loans offer flexible guidelines, competitive interest rates, and significant financial advantages compared to many conventional loan options.
What are the benefits of a VA loan for veterans?
Key VA loan benefits include:
- No down payment (in most cases)
- No monthly private mortgage insurance (PMI)
- Competitive VA mortgage rates
- Flexible credit and debt-to-income guidelines
- Limits on certain closing costs
These benefits make VA home loans one of the most affordable mortgage options for veterans. Please contact one of our loan originators to get your VA loan application started.
Do VA loans require a down payment?
One of the most powerful VA loan benefits is that qualified borrowers can purchase a home with zero down payment, provided the home appraises for the purchase price and entitlement requirements are met.
Is mortgage insurance required on a VA loan?
No. VA loans do not require monthly mortgage insurance, which can significantly reduce your total monthly housing payment compared to many conventional or FHA loans.
What is the VA funding fee?
The VA funding fee is a one-time fee required on most VA purchase and refinance loans. The fee helps keep the program running for future veterans. In many cases, the funding fee can be financed into the loan. Some veterans with service-connected disabilities may be exempt. Please contact one of our loan originators to see how your VA loan will handle this fee.
What types of properties qualify for a VA loan?
VA loans are for primary residences only and can be used to purchase:
- Single-family homes
- Approved condominiums
- Multi-unit properties (up to four units, if you occupy one unit)
- Newly constructed homes
Investment properties and second homes are not eligible.
Can I use a VA loan more than once?
Yes. VA loan benefits are reusable. Veterans may restore entitlement after selling a home and, in some cases, may even have more than one VA loan at the same time depending on remaining entitlement. Please reach out to one of our loan originators to look into your situation further.
Can veterans refinance with a VA loan?
Yes. VA refinance options include:
- VA Interest Rate Reduction Refinance Loan (IRRRL) – often called a VA Streamline Refinance
- VA Cash-Out Refinance – allows homeowners to access home equity or refinance from another loan type into a VA loan
Both options can help veterans lower their rate or improve their financial flexibility.
Is there a minimum credit score for a VA loan?
The VA does not set a specific minimum credit score requirement. However, individual lenders may establish their own credit guidelines based on underwriting standards. Please contact one of our loan originators to see if a refinance is right for you.
How do I apply for a VA home loan?
To apply for a VA mortgage, you’ll need: • Certificate of Eligibility (COE) • Income and employment documentation • Credit and asset information A knowledgeable VA-approved lender can guide you through the application, underwriting, and closing process. Please contact one of our loan originators to get the process started.
1st-Time Homebuyer
Can I get a mortgage with student loan debt?
Yes. Student loans don’t automatically disqualify you. Lenders factor your student loan payments into your overall debt-to-income ratio when reviewing your application.
What programs are available for first-time homebuyers?
First-time buyers may qualify for programs with lower down payments, flexible credit guidelines, or reduced costs. Eligibility varies by program and location.
Please contact one of our loan originators to see which programs are available to you in your area.
Are there down payment assistance programs available in my area?
Many states, counties, and cities offer down payment assistance programs for qualified buyers. These may include grants, forgivable loans, or low-interest second mortgages. Availability depends on location, income limits, and purchase price.
Please contact one of our loan originators to discuss options available to you.
Is renting or buying a better option right now?
The right choice depends on your goals, finances, and timeline. Buying can build long-term equity, while renting may offer flexibility. Please contact one of our loan originators to see which option makes the most sense for you.
What mortgage programs are available?
Loan options vary by state and may include conventional, government-backed, construction, and specialty programs. Please contact one of our local loan originators to help identify the best fit for you in your area.
Can I use gift funds for my down payment?
Yes. Gift funds are allowed on many loan programs but require a signed gift letter and proof of the donor’s funds.
Can I qualify for a mortgage after bankruptcy or foreclosure?
Yes. Many programs allow borrowers to qualify after a waiting period, depending on the circumstances and loan type. Please contact one of our loan originators to see how we can work through your bankruptcy or foreclosure.
Who is eligible for a VA loan?
VA loan eligibility is available to qualified U.S. military veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses. Borrowers must obtain a Certificate of Eligibility (COE) or Discharge/Separation form (DD214). If you do not have your COE, no problem! Contact your loan originator today and they can pull it for you and provide further instructions.
Mortgage Process
What happens after I submit a mortgage application?
Buying a home is one of the most exciting, and important financial decisions you’ll make, and understanding the mortgage loan process can make the journey smoother and more confident. Your loan goes through processing, underwriting, and final approval. During this time, additional documents may be requested.
How does underwriting work?
Underwriting reviews your income, assets, credit, and property details to ensure the loan meets guidelines for approval.
What can delay a mortgage closing?
Delays often result from missing documents, appraisal issues, credit changes, or employment changes. Thorough communication with your InterLinc Mortgage loan originator will ensure that your mortgage closing avoids any unforeseen holdups.
What should I avoid doing during the loan process?
Some of the common mistakes to avoid are taking on new debt, changing jobs, or making large financial changes without consulting your lender. Other, less common situations should also be avoided to ensure a smooth mortgage process.
How soon can I move in after closing?
Once your loan is funded and recorded, you’ll receive the keys and can move into your new home!