Here are answers to some of the questions we hear most often. If you do not see your question here, reach out and we will be happy to help.
Pre-qualification is usually based on basic information you provide verbally or online. It can be helpful for an early idea of your price range, but it does not carry much weight with sellers. Pre-approval is more thorough. We review your credit, income documents, and other details so we can issue a stronger letter. A true pre-approval gives you and your agent more confidence and can make your offer more competitive.
Documentation varies by file, but most borrowers can expect to provide recent pay stubs, W-2s or tax returns, bank statements, identification, and information about any existing mortgages or debts. Self-employed borrowers may need business tax returns and additional financial statements. At the start of the process, we will send a detailed checklist based on your situation so you know exactly what to gather.
There is no single right amount. Many buyers still think they need 20 percent down to buy a home, but that is often not the case. Some Conventional programs allow as little as 3 to 5 percent down for qualified buyers, and VA loans can offer little or no down payment for eligible borrowers. The right down payment depends on your savings, comfort level, and long-term plans. Our job is to show you the trade-offs between putting more or less down so you can decide what feels wise.
Lenders look at several factors when pricing a loan. Your credit score, down payment, loan amount, property type, occupancy, and the type of loan you choose all play a role. Market conditions matter as well, which is why rates move over time even when your profile stays the same. We will walk through the factors that apply to you and explain how different choices might move your rate up or down.
A refinance can be useful when it clearly supports a goal, such as lowering your payment, shortening your term, consolidating higher-interest debt, or accessing equity for a major purpose. It is not only about chasing a lower rate. We will compare your current loan to potential new structures, show you the costs and break-even timelines, and give you our honest opinion on whether a refinance is worth it for your situation.
Yes. Self-employed buyers can absolutely qualify for a mortgage, but the documentation is a bit different. Lenders often look at tax returns, business income, and expense patterns rather than simple pay stubs. The earlier we review your documents, the better we can explain how lenders view your income and what price range makes sense. If you own a business or work as an independent contractor, reach out early in your planning process.
VA loans are backed by the Department of Veterans Affairs and are available to eligible service members, veterans, and some surviving spouses. They can offer little or no down payment, competitive interest rates, and no monthly private mortgage insurance. There is usually a funding fee that can often be financed into the loan. We will help you confirm your eligibility, understand how entitlement works, and compare VA to other options so you can decide what is best.
Typical purchase transactions close in about 30 days, but timelines can be shorter or longer depending on the contract, the property, and how quickly documents are provided. Refinances may have slightly different timelines. At MTG Home Loans we set expectations early, build a clear timeline with your agent, and keep you informed of what is needed at each stage so closing day does not feel like a surprise.
