Frequently Asked Questions

---

Rates vary depending on several factors, including the type of loan, loan amount, credit score, and current market conditions. To provide you with accurate rates personalized to your situation, schedule a free consultation so we can discuss your specific needs and preferences further. 

Lenders assess several factors to determine a buyer's loan eligibility and borrowing capacity:

• Income: Lenders evaluate the buyer's income to ensure they have sufficient funds to make monthly mortgage payments. Stable and verifiable income sources increase the likelihood of loan approval.
• Credit Score: A buyer's credit score is a numerical representation of their creditworthiness based on their credit history. Lenders use credit scores to assess the risk of lending to a buyer. Higher credit scores generally result in lower interest rates and better loan terms.
• Existing Debts: Lenders consider the buyer's existing debts, such as car loans, student loans, and credit card balances, when determining loan eligibility. These debts affect the buyer's debt-to-income ratio (DTI), which is the ratio of their monthly debt payments to their gross monthly income. A lower DTI indicates less financial strain and may result in a higher borrowing capacity.

Answering this question can be tricky.  Having a consultation with an experienced mortgage broker will help you better understand your buying power.  

Pre-Qualification: Quick estimate of borrowing capacity based on basic financial information. No documentation required. Not a guarantee of loan approval.  

Pre-Approval: Thorough evaluation based on detailed financial documentation and credit check. Indicates a lender's commitment to provide a loan up to a certain amount, pending property appraisal.

 
Closing costs are fees associated with finalizing a mortgage loan and transferring property ownership. Common costs include loan origination fees (0.5% to 1% of the loan amount), appraisal fees ($300 to $500), title search and insurance ($500 to $2,000), and prepaid items like property taxes and insurance (1% to 2% of the home's price). Overall, closing costs typically range from 2% to 5% of the home's purchase price. 

 The timeline for closing on a home typically takes 30 to 45 days from offer acceptance to closing. It involves steps like mortgage application, loan processing (2-4 weeks), home inspection and appraisal, underwriting (1-2 weeks), receiving a Closing Disclosure (at least 3 days before closing), final walk-through, and signing paperwork on closing day. 

 For mortgage loan approval, you typically need:

1. Income verification: W-2s, pay stubs.
2. Asset documentation: Bank statements.
3. Employment verification: Verification from your employer.
4. Identification: Government-issued ID.
5. Credit information: Authorization for credit check.
6. Debt information: List of current debts.
7. Additional documentation: Purchase agreement, gift letter (if applicable), divorce decree (if applicable).

Partnering with a broker like Rockhouse Mortgage, LLC, can offer significant long-term savings. With access to multiple lenders and the ability to negotiate optimal terms, mortgage brokers are dedicated to securing the most affordable mortgage tailored to your needs.