Frequently Asked Questions

Private mortgage insurance, also known as PMI, is a type of mortgage insurance that protects your lender in the event you default on your loan. It is generally required on loan programs when a borrower puts less than 20 percent down toward the loan transaction. It may be included in your monthly payment or paid up-front as an additional closing cost.

Your down payment will depend on the type of loan you’ve secured, your total monthly debt obligations as well as how much you want your monthly payment to be. Down payment requirements typically vary, starting at a minimum of 3 percent, however, you can increase this amount at your discretion. Each person’s financial situation and preferences vary, so be sure to talk with your loan officer to discuss other options that may be available to meet your needs.

Typical pre-qualification means your lender has reviewed your preliminary credit report, as well as the income and asset details you’ve provided, and thinks you are a good candidate for a mortgage. It should not be confused with a pre-approval. Under a pre-approval process, the details of your loan application will be verified to safely establish your qualifications against appropriate underwriting guidelines.