Mortgage Questions Answered by Dan Flavin

Question 1

When should I talk with a mortgage loan officer?

Dan Flavin · Accepted Answer

Talk with a mortgage loan officer before you begin seriously touring homes, and earlier if you want time to improve your credit, savings, or monthly-debt picture. An early review can turn a vague price range into a documented plan for payment, cash to close, and timing.

Question 2

What is the difference between mortgage prequalification and preapproval?

Dan Flavin · Accepted Answer

A prequalification is usually an early estimate based on information you provide, while a preapproval generally involves a more complete application and review of credit, income, assets, and debts. Terminology varies by lender, so ask exactly what has been verified and whether an underwriter has reviewed the file.

Question 3

How much house can I afford?

Dan Flavin · Accepted Answer

The useful answer is the payment and cash requirement you can comfortably support, not simply the largest loan amount a guideline may allow. Review principal and interest, property taxes, homeowners insurance, mortgage insurance, association charges, other debts, maintenance, and the savings you want left after closing.

Question 4

How much down payment do I need to buy a home?

Dan Flavin · Accepted Answer

The required down payment depends on the loan program, property, occupancy, and your qualifications. Some eligible VA and USDA borrowers may finance without a down payment, FHA commonly requires at least 3.5%, and certain conventional options may allow 3%; none of those figures includes every closing expense or proves eligibility.

Question 5

What credit score do I need for a mortgage?

Dan Flavin · Accepted Answer

There is no single credit score required for every mortgage. Program rules, lender standards, property type, down payment, reserves, debt-to-income ratio, and the full credit history can all affect the decision, so a score should be reviewed in the context of the complete file.

Question 6

What is debt-to-income ratio, and what debts count?

Dan Flavin · Accepted Answer

Debt-to-income ratio, or DTI, compares qualifying monthly debt obligations with qualifying gross monthly income. Housing expense, installment loans, revolving accounts, student loans, support obligations, and some other recurring liabilities may count; the treatment of a specific debt depends on current program guidance and documentation.

Question 7

How much money will I need at closing?

Dan Flavin · Accepted Answer

Cash to close is not the same as the down payment. It may include the down payment, lender and settlement charges, prepaid interest, initial tax and insurance deposits, and other property-specific costs, reduced by eligible deposits, credits, grants, or assistance.

Question 8

Can the seller pay my closing costs?

Dan Flavin · Accepted Answer

A seller may be able to contribute toward eligible closing costs, but the permitted amount and use depend on the loan program, occupancy, down payment, appraised value, and actual costs. A credit that exceeds eligible charges generally is not handed to the buyer as cash.

Question 9

Can I use gift money for my down payment or closing costs?

Dan Flavin · Accepted Answer

Many mortgage programs permit eligible gift funds, but the donor, gift letter, transfer trail, and allowed use must meet the selected program's rules. Tell your loan officer before money moves so the gift can be documented correctly.

Question 10

Can I qualify for a mortgage if I am self-employed?

Dan Flavin · Accepted Answer

Yes, self-employed borrowers can qualify when income is stable, documented, and sufficient under the selected program. The review may include personal and business tax returns, business structure, ownership percentage, current-year results, liquidity, and whether reported income is likely to continue.

Question 11

Can I buy a home when I have student loan debt?

Dan Flavin · Accepted Answer

Student loan debt does not automatically prevent homeownership. The payment used for mortgage qualification depends on the loan program and the documentation available, and it may differ from the amount shown on a credit report when a loan is deferred or on an income-driven plan.

Question 12

What documents do I need for mortgage preapproval?

Dan Flavin · Accepted Answer

Most buyers should be ready to document identity, income, employment, assets, debts, housing history, and the source of funds for closing. The exact list changes for self-employment, rental income, gifts, retirement income, business ownership, recent job changes, and other circumstances.

Question 13

What is the Maryland Mortgage Program?

Dan Flavin · Accepted Answer

The Maryland Mortgage Program is a Maryland Department of Housing and Community Development homeownership initiative that can combine eligible first-mortgage options with down payment or closing-cost assistance. Income, purchase price, property, homebuyer education, occupancy, and other requirements vary by product and can change.

Question 14

Can down payment assistance be combined with seller credits?

Dan Flavin · Accepted Answer

It may be possible to combine down payment assistance with seller credits when every program permits the structure and the credits are used for eligible costs. The first mortgage, assistance provider, sales contract, appraisal, and final closing-cost figures must all work together, so this should be planned before the offer is written.

Question 15

What is the difference between an appraisal and a home inspection?

Dan Flavin · Accepted Answer

An appraisal supports the lender's collateral and value review, while a home inspection is a buyer-selected examination of the property's condition. One does not replace the other, and appraisal requirements do not guarantee that a home is free from defects.

Question 16

When should I lock my mortgage rate?

Dan Flavin · Accepted Answer

A rate lock should be considered after reviewing the available rate, cost or credit, lock period, closing schedule, and what happens if the transaction is delayed. Rates can change, and a quoted rate is not locked unless the lender confirms the lock under its procedures.

Question 17

How long does it take to close a mortgage?

Dan Flavin · Accepted Answer

Closing time depends on the loan type, property, appraisal, title work, documentation, underwriting conditions, assistance programs, and the parties' contract dates. A complete, accurate file and prompt responses help, but no responsible lender should promise a closing date before the transaction is fully evaluated.

Question 18

Which mortgage program is best for me?

Dan Flavin · Accepted Answer

The best fit is the program that supports your goals and complete financial picture, not automatically the one with the smallest down payment or lowest advertised rate. Compare payment, cash to close, mortgage insurance, reserves, flexibility, property rules, and the expected time you may keep the loan.

Mortgage questions, answered clearly.

Frequently asked mortgage questions