MORTGAGE ANSWERS

Useful information.
Plainly stated.

Clear starting points for common mortgage questions. Your income, credit, property and goals can change the answer, so use these explanations to prepare for a personal conversation.

REAL BORROWER EXPERIENCES

Sometimes the numbers
need a closer look.

Two experiences from Jeff’s lending work show why understanding the details can matter as much as knowing the guidelines. Borrowers are unnamed to protect their privacy.

01 · VARIABLE INCOME

His income was rising. The average was holding him back.

A union buyer’s income had been increasing every six months. But a two-year average of his variable earnings—including overtime, bonuses and commissions—did not reflect what he was earning now. The initial calculation left him short of qualifying.

Jeff took a closer look at the hours worked and the current hourly wage. He presented a calculation using average hours worked multiplied by the current wage, supported the approach with underwriting, and obtained approval. The buyer qualified and closed on his home.

What this teaches

When earnings change, the way income is documented and evaluated deserves careful attention. This approach was accepted for this borrower; it is not a universal formula for qualifying variable income.

02 · A CHANGE IN EMPLOYMENT

A move to 1099 income did not end her homebuying plans.

A buyer had moved from W-2 employment to 1099 work. She was told she did not have usable income without two years of self-employment history. Her financial planner referred her to Jeff for another look.

Jeff reviewed her brokerage assets and identified a non-QM asset-depletion program—a loan option that can use eligible assets to calculate qualifying income under that lender’s rules. It enabled her to purchase the home, although the interest rate was somewhat higher.

What this teaches

A different program may open a path, but the costs and requirements still matter. Eligible assets, documentation and underwriting determine whether an asset-based option fits a particular borrower.

These are individual past experiences, not promises of approval or similar results. Loan availability and eligibility depend on the borrower, property, lender guidelines and underwriting.

Talk through your situation with Jeff & Tina

MORTGAGE RATES & POINTS

Why the lowest rate
isn’t always the best deal.

The rate is one part of the decision. The upfront cost and the time you expect to keep the mortgage belong in the same conversation.

Start with a baseline

A par rate is a starting point with no discount points or rate-related lender credit. It does not mean there are no other closing costs. From there, compare what it costs to lower the rate and what a higher rate might provide in lender credits.

Pay points

Pay more upfront for a lower interest rate. The monthly savings need enough time to recover that extra cost.

Use a lender credit

A higher rate may provide a credit toward eligible closing costs. That can reduce the cash needed at closing, with a higher ongoing payment.

Compare choices around your plans

Ask for options on the same loan amount and term. Review the payment, points, lender credits, other fees, APR and cash to close. Then consider how long you expect to keep the loan and how much cash you want to preserve. A future refinance is not guaranteed.

Further reading: CFPB guide to points and lender credits.

HOME BUYER LOAN EDUCATION PACKET

Prepare for the process before it begins.

Learn why pre-approval matters, follow the home-loan process step by step and keep a plain-language mortgage glossary close at hand.

Read the online guide View the printable packet

Questions borrowers actually ask.

Watch Jeff’s 10-part homebuyer series →

01How much do I need for a down payment?+

Some conventional programs allow as little as 3% down, while FHA, VA, jumbo and investment-property loans follow different rules. The right answer depends on occupancy, credit, reserves and your larger financial plan.

02When should I get pre-approved?+

Ideally, before touring seriously or writing an offer. A thoughtful pre-approval can identify documentation needs early and help you understand a comfortable price range.

03Should I choose the lowest advertised rate?+

Not automatically. Rate, points, lender fees, mortgage insurance, loan term and how long you expect to keep the home all affect the true cost. Compare the complete strategy, not one number.

04Can rental income help me qualify?+

Often, yes. The calculation depends on the property, lease or market-rent documentation, ownership history and the loan program.

05Can you help with complicated scenarios?+

Yes. Guideline-heavy and unusual situations are a core part of Jeff and Tina’s work. They explain what may be possible, what documentation is needed and where the risks are before you commit.

Have a question about your situation?

Call Jeff or Tina for an answer based on your actual goals and circumstances.

Call 916.606.3779