Mortgage Knowledge Base

It depends on the loan. VA and Texas Vet loans can be $0 down for eligible veterans. Conventional loans often need 3–20%. Bank statement (non-QM) loans for the self-employed usually start around 10%. The right answer depends on your situation — that's something we can pin down for you quickly.

Many programs start around a 620 score, and some go lower. A higher score generally means a better rate. If your credit isn't perfect, don't count yourself out — there are loan types built for exactly that, and a good loan officer can map a path.

Pre-qualification is a quick estimate based on what you tell us. Pre-approval is stronger — we verify your information and issue a letter that shows sellers you're a serious, ready buyer. In a competitive market, a pre-approval can be the difference between winning a home and losing it.

A common rule is that your total monthly debts stay under about 43–50% of your income, but the real number depends on your debts, down payment, and rate. Use the affordability calculator on this site for a quick estimate, then we'll confirm the exact figure.

Yes. Getting pre-approved first tells you your real budget, makes your offers stronger, and speeds up closing once you find the right home. It only takes a short conversation to get started.

Yes. Texas offers statewide programs — for example, TSAHC's Homes for Texas Heroes provides down payment assistance for teachers, police and corrections officers, firefighters, EMS personnel, and veterans, and its Home Sweet Texas program serves other income-eligible buyers. These can sometimes pair with the loan programs on this site; ask your loan officer what you're eligible for.

Typically ID, proof of income (pay stubs and W-2s, or bank statements if you're self-employed), recent bank/asset statements, and details on any other debts. We give you a clear checklist up front so there are no surprises.

Most loans close in about 30–45 days from a signed contract. Being responsive with documents and getting pre-approved early are the two biggest things that keep it on schedule.

At closing you sign the final loan and ownership documents, pay any remaining closing costs and down payment, and get the keys. We walk you through every number beforehand so closing day is smooth.

An appraisal is an independent estimate of the home's value. The lender uses it to confirm the home is worth what you're paying. If it comes in low, there are options — we'll help you navigate them.

Escrow is a neutral account that holds funds during the transaction, and later often holds money for your property taxes and insurance so they're paid automatically as part of your monthly payment.

Underwriting is the lender's review of your full application — income, credit, assets, and the property — to confirm the loan meets guidelines. A well-prepared file moves through underwriting faster.

A rate lock freezes your quoted interest rate for a set window — commonly 30 to 60 days — so market moves can't change your deal while your loan closes. Some locks offer a one-time 'float down' if rates drop. Ask when your lock starts, when it expires, and what an extension costs.

Don't open new credit cards or loans, don't make large unexplained deposits or transfers, don't change jobs without telling your loan officer, and don't miss any payments. Lenders re-verify credit and funds right before closing, and surprises at that stage can delay or derail the loan.

Rates move with the broader bond market plus your personal profile — credit, down payment, loan type, and loan amount all factor in. Two people can get different rates on the same day, which is why a custom quote matters.

Closing costs cover things like the appraisal, title, lender fees, and prepaid taxes/insurance — often roughly 2–5% of the loan. Some can be negotiated or covered by the seller; we'll show you the full breakdown.

Private mortgage insurance is an extra monthly cost on many low-down-payment conventional loans. VA and Texas Vet loans don't have monthly PMI at all, which can save hundreds a month — one of their biggest advantages.

A fixed rate stays the same for the life of the loan (predictable). An adjustable rate can start lower but change later. Most buyers planning to stay a while prefer fixed; we'll help you weigh it for your plans.

Texas has no state income tax but relatively higher property taxes (often around 1.6–1.9% of value, varying by county). These are usually escrowed into your monthly payment, and our calculators factor them in.

A point is a fee equal to 1% of the loan amount paid at closing to lower your interest rate. Whether points make sense depends on how long you'll keep the loan — divide the upfront cost by the monthly savings to find your break-even month, and compare that to how long you plan to stay.

The Texas Vet (VLB) loan is a state program with below-market, weekly-set rates for Texas veterans. The VA loan is a federal benefit offering $0 down and no PMI. They're separate — and many Texas veterans combine both for the best of each.

The COE proves your VA loan entitlement. We can help you request it — often it's pulled quickly online, and having it ready up front speeds up your approval.

Yes. A 30%+ service-connected disability rating qualifies you for an additional discounted Texas Vet rate, and disabled veterans are typically exempt from the VA funding fee — real savings up front and monthly.

Yes — the VA home loan benefit can be reused. As you pay down or sell, your entitlement can be restored for your next home.

Yes. The old reputation for slow VA closings is outdated — VA loans close on a similar timeline to other loans and at a high success rate. A strong pre-approval makes your offer competitive.

The Texas Vet (VLB) loan is for purchases only. To refinance, you'd use your federal VA loan benefit, which does allow it.

Purchases: 2.15% on first use with less than 5% down, 1.5% with 5-9.99% down, 1.25% with 10% or more down, and 3.3% for subsequent use with minimal down. The IRRRL streamline refinance is 0.5%. Veterans receiving VA disability compensation, Purple Heart recipients, and eligible surviving spouses are exempt.

Yes — the VA IRRRL streamline refinance usually requires no appraisal, carries a reduced 0.5% funding fee, and just needs 210 days plus six payments on your current VA loan, with savings that recoup costs within 36 months.

Yes on both. The VLB land loan finances one acre or more with as little as 5% down (currently up to $200,000), and VA one-time-close construction loans can fund a new build with a licensed builder — often with no down payment.