A mortgage is a loan used to buy a home. The lender provides funds, and you repay the loan in monthly payments that include principal and interest.

Lenders look at your credit score, income, employment history, debt-to-income ratio (DTI), and down payment to determine eligibility.

• Conventional loans: 3%-20% 
• FHA loans: 3.5% 
• VA & USDA loans: 0% (for eligible borrowers)
   

• Fixed-Rate Mortgage: The interest rate stays the same for the entire loan term. 
• Adjustable-Rate Mortgage (ARM): The rate starts lower but can adjust over time based on market conditions.
   

• FHA Loans (3.5% down, easier credit requirements)
• Conventional Loans (as low as 3% down with good credit) 
• VA Loans (0% down for military members & veterans) 
• State & Local First-Time Buyer Assistance Programs
   

PMI is required for conventional loans when your down payment is less than 20%. It protects the lender if you default but can be removed once you reach 20% equity.

1. Get pre-approved by a lender. 
2. Find a home and submit an offer. 
3. Apply for a mortgage and submit financial documents. 
4. Home appraisal & underwriting process begins. 
5. Get final loan approval and review closing documents.
6. Close on your home and get the keys!
    

On average, 30-45 days from application to closing, but this can vary based on the loan type and documentation process.

Your lender will explain the reason. Common reasons include low credit score, high debt, insufficient income, or a low home appraisal. You may need to improve your finances or explore alternative loan options.

Your interest rate is based on:
✅ Credit score
✅ Loan amount & type
✅ Down payment size
✅ Market conditions
✅ Debt-to-income ratio

Closing costs typically range from 2% to 5% of the home’s price and may include:

• Loan origination fees 
• Home appraisal fees 
• Title insurance 
• Escrow fees 
• Prepaid property taxes & homeowners insurance
   

Yes! You can:
✔ Refinance to a lower rate
✔ Make a larger down payment
✔ Choose a longer loan term (e.g., 30 years instead of 15)
✔ Pay down PMI (if applicable)

Refinancing is beneficial when:
✔ Interest rates have dropped
✔ You want to lower your monthly payment
✔ You need cash from home equity (cash-out refinance)
✔ You want to switch from an ARM to a fixed-rate loan

A cash-out refinance allows you to borrow against your home’s equity. You replace your current mortgage with a new, larger loan and receive the difference in cash for home improvements, debt consolidation, or other expenses.

A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home’s equity. Unlike a refinance, a HELOC functions more like a credit card, where you borrow as needed rather than receiving a lump sum.

• Conventional Loan: 620+ 
• FHA Loan: 580+ (or 500 with a larger down payment) 
• VA Loan: No official minimum, but 620+ is preferred
• USDA Loan: 640+ preferred
   

✔ Pay down credit card balances
✔ Make all payments on time
✔ Avoid new credit inquiries
✔ Check your credit report for errors

If you miss a payment, your lender may charge a late fee. If multiple payments are missed, the loan could go into default and eventually lead to foreclosure. Contact your lender immediately if you’re struggling to make payments.

Yes! Most loans allow early repayment without penalties, but check your loan agreement for prepayment fees.

Lenders often include property taxes and homeowners insurance in your monthly mortgage payment through an escrow account. These costs can change over time, affecting your payment amount.

At Graham Lending Expert, we’re here to help you through every step of the mortgage process. Whether you’re buying your first home, refinancing, or exploring loan options, we’ve got you covered!

📞 Call Us: 843-246-4997
📩 Email Us:cgraham@nexamortgage.com
🖥 Apply Online Here