Question 1

How do I get started?

Accepted Answer

It's less intimidating than you think. Let's get to know each other so we can tailor a mortgage solution that's right for you. We'll collect a 2-year work and residence history along with gross monthly or annual income. We'll also discuss assets, down payment preference, and unique financing structures that best fit your needs. Plan for a 10-minute phone call or face-to-face meeting, or use our mobile or web-friendly application if you prefer. Above all, we'll work together to make sure you're comfortable.

Question 2

Is my credit score going to be impacted?

Accepted Answer

We will never pull a credit report or credit score without your permission. If you'd like, we can start with a soft credit check, which does not impact your credit. Many clients prefer a soft check at pre-approval. Note that we cannot lock your interest rate or issue full underwriting approval based on a soft credit report. Also, mortgage credit inquiries are treated differently than other consumer inquiries: if multiple mortgage companies check your credit within a short window (typically 14 to 45 days depending on the FICO model), they are treated as a single inquiry.

Question 3

What is the difference between prequalification and preapproval?

Accepted Answer

Prequalification is a conversation. A verbal or online disclosure of income, assets and down payment is all it takes. A preapproval requires actual verification of your financial information. A preapproval takes a little more time and documentation, but it carries far more weight with sellers and gives you confidence that your lender sees your income the same way you do.

Question 4

I've heard I need at least 20% down to buy a home. Is that accurate?

Accepted Answer

No. Depending on credit and other factors, most homebuyers can qualify with as little as 3% to 3.5% down. Programs like VA and USDA offer up to 100% financing, so you do not necessarily need 20% down to qualify for a home purchase.

Question 5

What are closing costs and how much should I expect them to be?

Accepted Answer

Closing costs are all of the charges you pay at closing once your loan is complete, including lender, attorney, and state fees. They vary based on credit, down payment, loan program, and interest rate, but generally run 1.5% to 3% of the loan amount.

Question 6

How long does my pre-approval last?

Accepted Answer

Pre-approvals expire with your credit report. Credit reports are valid for 120 days from the date of the initial inquiry. If your credit report expires before closing, we'll need an updated report along with updated income and asset documentation.

Question 7

I've received my pre-approval. Is my interest rate locked in?

Accepted Answer

We will never lock your interest rate without your express instruction. Typically, buyers lock their rate once they are under contract and have a closing date. Different rate lock durations come with different pricing, and as a general rule, the shorter the lock term, the better the price.

Question 8

What is APR?

Accepted Answer

APR, or annual percentage rate, is used to evaluate the true cost of borrowing. It includes the interest rate, points, origination fees, and other costs associated with the loan. APR is usually higher than the interest rate because it folds in all of these costs. It is not your mortgage interest rate, but an expression of the overall cost of the loan.

Question 9

How long does the entire process take after I make loan application?

Accepted Answer

Industry turn times can stretch past 30 and sometimes 45 days. At Highland Mortgage, our standard is roughly 16 business days from application to closing. Because we process, underwrite, close, and fund our own mortgages in house, we can move faster when your contract calls for a quick close.

Question 10

Can I order my own appraisal?

Accepted Answer

You can, but only for your own purposes. Lenders cannot use an appraisal ordered by the buyer or seller. Appraisal Independence Requirements mandate that lenders order appraisals through a defined process that eliminates errors and value inconsistencies. We manage appraisal assignments in house through a dedicated, seasoned team to ensure compliance without sacrificing speed or quality.

Question 11

What are credit trigger leads and are they legal?

Accepted Answer

Trigger leads were created by the national credit bureaus. When you apply for a mortgage pre-approval, a credit report is pulled and that action triggers an inquiry. The bureaus then have the ability to sell your information to other lenders, sometimes within 24 hours of application. Rest assured, Highland Mortgage does not sell your credit information. Trigger leads are unfortunately legal, though Highland Mortgage has been lobbying with the Mortgage Bankers Association to reverse the practice. They allow other loan officers to contact you under the guise of "making sure you're getting the best rate."

Straight answers, before you ever fill out an application.

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