A mortgage is a loan used to purchase a home, where the property serves as collateral. You borrow a lump sum from a lender and repay it over time — typically 15 or 30 years — with interest. Each monthly payment covers both principal (the amount you borrowed) and interest. If you stop making payments, the lender has the right to foreclose and take ownership of the property. Mortgage Resources offers a variety of loan terms customizable to your personal needs.

A common guideline is to keep your total monthly housing costs — mortgage, taxes, insurance, and HOA fees — below 28% of your gross monthly income. Your total debt (including car loans, student loans, and credit cards) should stay under 43%. However, getting pre-approved by a broker like us gives you a personalized, accurate number based on your actual income, credit score, and debts. We can determine any wiggle room your profile allows.

Most conventional loans require a minimum credit score of 620. FHA loans may accept scores as low as 580 (or 500 with a larger down payment). VA and USDA loans have more flexible requirements. That said, higher scores — 720 and above — typically qualify you for the best interest rates, which can save you tens of thousands of dollars over the life of the loan.

A fixed-rate mortgage locks in your interest rate for the entire loan term, so your principal and interest payment never changes. An adjustable-rate mortgage (ARM) starts with a lower fixed rate for an initial period (commonly 5, 7, or 10 years), then adjusts periodically based on market indexes. ARMs can be a smart choice if you plan to sell or refinance before the adjustment period begins.

An FHA loan is a mortgage insured by the Federal Housing Administration. It's popular with first-time buyers because it allows down payments as low as 3.5% and accepts lower credit scores. The trade-off is that you must pay mortgage insurance premiums (MIP) — both an upfront fee and an annual fee — for the life of the loan in most cases. FHA loans have loan limits that vary by county.

VA loans are mortgages backed by the U.S. Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and surviving spouses. Key benefits include no down payment required, no private mortgage insurance (PMI), and competitive interest rates. There is a VA funding fee, which can be rolled into the loan, but many veterans with service-connected disabilities are exempt

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In most of the U.S., that limit is $832,750 for 2026, though it's higher in high-cost areas. Jumbo loan applicants benefit from stronger credit (700+), a larger down payment (10–20%), and more financial reserves. They are not backed by Fannie Mae or Freddie Mac.

Pre-qualification is an informal estimate based on self-reported information — it gives you a ballpark idea of what you might borrow. Pre-approval is a more rigorous process where the lender verifies your income, assets, employment, and pulls a hard credit check. A pre-approval letter shows sellers you're a serious buyer and carries significantly more weight in a competitive market.

From application to closing, the average mortgage takes 30–45 days. The timeline can be shorter for straightforward purchases with strong financials, or longer if there are appraisal delays, title issues, or documentation gaps. Refinances often move faster. Staying responsive to your loan officer's requests for documents is the best way to keep things on track. Need a quicker closing than 30 days? Give us a call!

Most lenders will ask for: two years of W-2s and tax returns, recent pay stubs (last 30 days), two to three months of bank and asset account statements, a government-issued ID, and your Social Security number for a credit pull. Self-employed borrowers typically need to provide additional documentation, including business tax returns and a profit-and-loss statement.

The interest rate is the cost of borrowing the principal, expressed as a percentage. The APR (Annual Percentage Rate) includes the interest rate plus most fees and costs associated with the loan — such as origination fees, discount points, and mortgage insurance. APR gives you a more complete picture of the loan's true cost, making it a better tool for comparing offers from different lenders.

Closing costs are fees paid at the end of a real estate transaction to finalize the mortgage. They typically range from 2% to 5% of the loan amount and include lender fees (origination, underwriting), third-party fees (appraisal, title search, title insurance), prepaid items (homeowners’ insurance, property taxes, prepaid interest), and government recording fees. Your lender is required to provide a Loan Estimate within three business days of your application.

Mortgage points (also called discount points) are upfront fees paid to lower your interest rate — one point equals 1% of the loan amount. Buying points makes sense if you plan to stay in the home long enough to recoup the upfront cost through the monthly savings. To find your break-even point, divide the cost of the points by the monthly savings. If you plan to move or refinance before that date, it's usually not worth it.

PMI is insurance required by conventional lenders when your down payment is less than 20%. It protects the lender — not you — if you default. The cost typically ranges from 0.19% to 1.5% of the loan amount annually, added to your monthly payment. Under federal law (the Homeowners Protection Act), you can request PMI cancellation once your equity reaches 20%, and lenders must automatically cancel it at 22% based on the original amortization schedule.

Refinancing makes sense when you can lower your interest rate by at least 0.5–1%, reduce your loan term, switch from an ARM to a fixed rate, or tap home equity for major expenses. Always calculate your break-even point: divide your closing costs by the monthly savings. If you'll be in the home longer than the break-even timeline — typically 2–4 years — refinancing is likely worth it.

A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference in cash. For example, if your home is worth $400,000 and you owe $200,000, you might refinance for $280,000 and receive $80,000 in cash (minus closing costs). The funds can be used for home improvements, debt consolidation, or other major expenses. Most lenders require you to maintain at least 20% equity after the cash-out.