Mortgage Questions? Let's Make Them Simple.
Buying a home, refinancing, or trying to figure out which mortgage makes the most sense does not have to feel overwhelming.
I have been in the mortgage business for 20 years, and my job is to make the process easier to understand while helping you explore the loan options that fit your specific situation.
As a local mortgage broker serving Fernandina Beach, Amelia Island, Yulee, Nassau County, Jacksonville, Northeast Florida, and South Georgia, I have access to more than 31 lenders and a wide range of traditional and specialty mortgage programs.
Here are some of the questions I hear most often.
Why should I use a mortgage broker instead of going directly to a bank?
A bank generally offers its own mortgage products. As a mortgage broker, I can shop among more than 31 lenders to compare different programs, guidelines, rates, and options for you.
That can be especially valuable if you are self employed, purchasing an investment property, buying a condo, need a jumbo loan, have a unique income situation, or simply want a second opinion before making a major financial decision.
My goal is not to fit you into one lender's box. It is to find the mortgage solution that fits you.
I am already preapproved with another lender. Can you still help me?
Absolutely.
You do not have to start from scratch just because you want a second opinion.
Different lenders have different guidelines, pricing, loan programs, and underwriting requirements. With access to more than 31 lenders, I may be able to identify an option your current lender does not offer.
If you are already preapproved, send me what you have and let me take a look.
Sometimes a second opinion can make a very big difference.
Another lender declined my loan. Does that mean I cannot get a mortgage?
Not necessarily.
One lender saying no does not always mean every lender will say no.
Different lenders have different underwriting guidelines and different levels of flexibility. I regularly work with borrowers who have complicated income, self employment, investment properties, debt to income challenges, condo issues, or other situations that may require a different approach.
Before giving up on the purchase, let me take a second look.
Can you help self employed borrowers?
Yes. This is one of my specialties.
Traditional mortgage underwriting does not always tell the full story for a self employed borrower.
Depending on your circumstances, we may be able to explore conventional financing as well as specialty programs that use bank statements, assets, investment property cash flow, or other qualifying methods.
Every situation is different, so I review the full financial picture before recommending a loan strategy.
What is a Non QM loan?
Non QM refers to mortgage programs that use alternative ways to qualify borrowers who may not fit traditional conventional, FHA, VA, or USDA guidelines.
These programs can be helpful for certain self employed borrowers, real estate investors, borrowers with significant assets, borrowers with unique income sources, or people whose financial situation does not fit neatly into traditional underwriting guidelines.
Non QM does not mean bad credit or a bad loan. It simply means the loan is qualified using different underwriting criteria.
What is a DSCR loan?
A DSCR loan, or Debt Service Coverage Ratio loan, is designed primarily for real estate investors.
Instead of qualifying primarily using your personal employment income, the lender generally evaluates the rental income or expected rental income of the investment property compared with the property's housing expense.
This can be a valuable option for investors who own multiple properties, are self employed, or prefer not to qualify using traditional personal income documentation.
Program requirements vary by lender and property.
What credit score do I need to buy a house?
There is no single credit score required for every mortgage.
Different loan programs and lenders have different credit requirements. Your credit score can also affect your interest rate, mortgage insurance, down payment requirements, and available loan options.
Base FICO scores generally range from 300 to 850, but your credit score is only one piece of the mortgage approval process.
Income, assets, debts, property type, down payment, loan program, and your overall credit history can all matter.
If you are unsure where you stand, talk to me before assuming your credit is not good enough to buy.
Will checking my mortgage options hurt my credit?
Not necessarily.
In many situations, we can start the conversation and review your options without immediately doing a hard credit inquiry.
When a hard mortgage credit inquiry is required, credit scoring models are designed to recognize that consumers may shop among mortgage lenders. Multiple mortgage related inquiries made within a limited shopping period are generally treated differently from repeatedly applying for unrelated types of new credit.
If you are concerned about your credit, tell me before we begin and I will explain exactly what is needed.
How much money do I need for a down payment?
It depends on the loan program.
Many buyers are surprised to learn that a 20 percent down payment is not always required.
There are mortgage programs that may allow much smaller down payments, and qualified borrowers may also have access to VA, USDA, first time homebuyer, or down payment assistance options.
Your ideal down payment depends on more than the minimum required. We will also consider your monthly payment, available cash, reserves, mortgage insurance, and longer term financial goals.
How much house can I afford?
The answer is different for every borrower.
Mortgage qualification considers factors including income, debts, credit, assets, down payment, taxes, insurance, homeowners association dues when applicable, and current interest rates.
But qualifying for a certain amount does not necessarily mean you should spend that amount.
I like to work backward from a monthly payment that feels comfortable for you and then determine what purchase price and loan structure make sense.
What documents will I need to get preapproved?
The exact documents depend on your loan program and financial situation.
You may be asked for items such as income documentation, bank or asset statements, identification, information about your current housing, and authorization to review your credit.
Self employed borrowers, investors, retirees, and borrowers using specialty loan programs may require different documentation.
I will tell you exactly what is needed for your particular situation rather than sending you a giant generic checklist.
What is the difference between prequalification and preapproval?
A prequalification is generally an initial estimate based on information you provide about your finances.
A stronger preapproval typically involves a more detailed review of your credit, income, assets, debts, and loan eligibility.
When you are ready to make an offer on a home, having a solid mortgage preapproval can help you and your real estate agent understand your financing position before you enter into a contract.
How are mortgage interest rates determined?
Mortgage rates can change frequently and are influenced by the financial markets, but your individual rate can also depend on factors such as the loan program, credit profile, down payment, property type, occupancy, loan amount, and whether you choose to pay points.
That is why comparing mortgage rates based only on an advertisement or online quote can be misleading.
The rate is only one part of the loan.
I look at the overall financing structure, including the rate, lender costs, monthly payment, cash needed to close, and your goals.
What is a Loan Estimate?
A Loan Estimate is a standardized document that provides important information about the mortgage you are considering.
For most residential mortgage applications, it shows information including the estimated interest rate, monthly payment, loan costs, closing costs, and other important loan terms.
Because lenders generally use the same standardized Loan Estimate format, it can be useful when comparing mortgage options.
If you already have a Loan Estimate from another lender, you are welcome to send it to me for a second opinion.
Can I buy a home if I am a first time homebuyer?
Absolutely.
Being a first time buyer does not mean you need a special mortgage, but there may be programs and strategies available specifically for first time homebuyers.
We can review conventional, FHA, VA, USDA, down payment assistance, seller concessions, temporary rate buydowns, and other options depending on your qualifications and the property.
My job is to explain the choices in plain English so you can make an informed decision.
Can you finance condos?
Yes.
Condo financing can be more complicated than financing a traditional single family home because the lender may need to review both the borrower and the condominium project.
Some properties may be considered non warrantable or may not meet the requirements of certain traditional loan programs.
Because I work with multiple lenders, I can often explore additional options when a condominium does not fit one lender's guidelines.
If another lender is having trouble approving your condo, call me before giving up on the property.
Do you offer jumbo loans?
Yes.
Jumbo financing is commonly used when the loan amount exceeds applicable conforming loan limits.
Jumbo borrowers may have different requirements involving credit, reserves, income documentation, appraisals, and down payment.
Because jumbo guidelines can vary significantly from lender to lender, shopping among multiple lenders can be particularly valuable.
Can you help with investment properties and second homes?
Yes.
I work with financing for primary residences, second homes, vacation homes, and investment properties.
Options may include conventional financing, jumbo financing, DSCR loans, and other specialty investor programs depending on the property and your qualifications.
This is especially helpful for borrowers purchasing investment property or second homes in Fernandina Beach, Amelia Island, Jacksonville, Northeast Florida, and surrounding areas.
How quickly can a mortgage close?
Closing time depends on the loan program, borrower documentation, property, appraisal, title work, underwriting, and other factors.
When everything is in place, certain loans may be able to close very quickly.
I am known for working aggressively to keep transactions moving and for stepping into difficult transactions when another lender is struggling to get the loan to closing.
If you are dealing with a tight closing deadline, call me and let me review the situation.
Should I talk to a mortgage professional before I start looking at homes?
Yes.
Getting your financing reviewed early can help you understand your comfortable monthly payment, estimated cash needed for closing, potential loan options, and realistic price range.
It can also uncover issues that are much easier to address before you fall in love with a property.
You do not need to know exactly what house you want before we start talking.
Can I use seller concessions to help with closing costs or my interest rate?
Depending on the loan program and transaction, a seller may be able to contribute toward certain buyer closing costs.
Seller concessions may also be used in some situations toward strategies such as temporary rate buydowns or other eligible costs.
The amount allowed and how the funds may be used depend on the loan program and transaction.
This is something I am happy to discuss with you and your real estate agent while structuring an offer.
Still Have Questions?
Every mortgage situation is different, and sometimes the question you really need answered does not fit neatly into an FAQ.
That is where I come in.
Whether you are buying your first home, purchasing an investment property, moving to Amelia Island, self employed, looking for a jumbo mortgage, or trying to rescue a loan that another lender cannot close, I would love the opportunity to take a look.
Call or text Diana Bunn: 904 557 5733
Email: dbunn@firstcoastmtg.com
Diana Bunn | Mortgage Loan Officer | NMLS #316314
First Coast Mortgage Funding