FAQ

We’re here to help.

There’s quite a few things we get asked all the time. And since making things simple is what we’re all about, we put the most commonly asked questions here. If you end up having an uncommon one, let’s connect and talk it out.

NO! Here’s the truth. Homeownership is the best opportunity most people have to own an asset that can significantly grow in value and give you financial freedom. Many programs require 0-5% down to secure a loan that will allow you to begin building your wealth sooner. Let us show you how the numbers work out.

Yes! There are plenty of down payment assistance programs out there. Depending on your location, income, and the type of loan you’re applying for, you may be eligible for grants or loans to cover part of your down payment. You don’t always need 20% down to buy a home. And you’re in the right place; Loan Simple is one of the best at originating down payment assistance programs. Let us help you explore your options so you can move toward homeownership faster.

Seller concessions are when the seller agrees to cover some of your closing costs to help sweeten the deal. This can include things like appraisal fees, title insurance, or property taxes. It’s basically the seller’s way of helping you lower your upfront costs, making it a win-win situation for both parties. Sound good? Let’s see how this could work in your transaction.

Your mortgage rate is the interest rate on your loan. It’s what you’ll pay each month on top of the principal. APR (Annual Percentage Rate) is a broader measure that includes the mortgage interest rate plus other costs and fees related to securing your loan. It’s like an all-in number that helps you compare loan offers more effectively.

When you lock a loan, you’re securing today’s interest rate for a set period, usually 30 to 60 days, while your loan is processed. This means that if interest rates go up during that time, you’re protected. If they go down, well, we can always talk about adjusting things, but at least you won’t get hit with higher rates unexpectedly.

Pre-qualification is like a quick estimate of how much you might be able to borrow based on basic financial information you provide. Pre-approval, on the other hand, is more official. The lender verifies your income, credit, and financial situation to determine how much they’re willing to lend you. Pre-approval holds more weight with sellers since it shows you’re serious and have been vetted.

Pre-approval is based on a snapshot of your financial situation at the time, but the full underwriting process requires a deeper dive. Lenders might ask for updated pay stubs, bank statements, or other documents to make sure nothing has changed before final approval. We know it’s a hassle, but it’s just part of the process to get you that dream home!

Your down payment is the portion of the home price you’re paying upfront. Closing costs, on the other hand, cover various fees associated with finalizing your loan, such as appraisal fees, title insurance, and attorney fees. Both are required at closing, but they cover very different things.

Loan Simple doesn’t require a home inspection, but it’s strongly recommended. A home inspection gives you a detailed look at the condition of the property, so you know exactly what you’re buying. Trust us—this can save you from costly surprises down the road.

Title insurance protects you and the lender against any legal issues that could arise from disputes over the ownership of the property. Things like unpaid property taxes, liens, or clerical errors in the public records could impact your claim to the home. It’s a one-time fee and, yes, it’s required by most lenders.

Absolutely. Homeowner’s insurance protects your home and everything inside it from things like fire, theft, or natural disasters. Lenders require it, and for good reason—your home is a big investment. Plus, it gives you peace of mind knowing that your house is protected.

Escrow is like a holding account for funds during the home buying process. You’ll often hear it mentioned in two ways: (1) an escrow account holds your earnest money until closing, and (2) an escrow account can also be used after closing to collect and manage property taxes and insurance premiums, making sure they’re paid on time.

Mortgage insurance is typically required when you put down less than 20% on a home. It protects the lender in case you default on the loan. PMI (Private Mortgage Insurance) applies to conventional loans, while MI (Mortgage Insurance) refers to the coverage required on government-backed loans, like FHA. Both serve the same purpose but are used in different loan types.

An FHA Loan is a mortgage insured by the Federal Housing Administration. It’s a great option for first-time homebuyers or those with lower credit scores, as it offers a lower down payment and more flexible credit requirements compared to conventional loans. However, FHA Loans do require mortgage insurance, which increases the overall cost of the loan. If you’re looking for a way to get into a home with less upfront cash, this could be a good choice!

A VA Loan is a mortgage backed by the U.S. Department of Veterans Affairs. It’s available to eligible veterans, active service members, and certain military spouses. VA Loans offer amazing benefits like no down payment, competitive interest rates, and no private mortgage insurance (PMI) requirement. It’s a great option if you qualify!

A USDA Loan is a mortgage option backed by the U.S. Department of Agriculture, designed to help people in rural and suburban areas buy homes. It offers perks like no down payment and lower interest rates, but there are eligibility requirements based on location and income.

A conventional loan is a mortgage that’s not backed by a government agency like the FHA, VA, or USDA. These loans typically require a higher credit score and a larger down payment than government-backed loans, but they offer more flexibility in terms of property type and loan terms.

Fannie Mae and Freddie Mac are government-sponsored enterprises that buy mortgages from lenders and sell them to investors, which helps keep the mortgage market stable. Ginnie Mae guarantees loans backed by the government, like FHA or VA loans. Together, they help ensure there’s money available for people to get home loans

It’s common for lenders to sell your loan to a different company after closing. Your loan terms won’t change, just who collects your payments. It’s nothing to worry about—this happens all the time and is just part of how the mortgage industry works. Keep an eye out for any notices and let us know if you have questions!

Refi is short for refinancing your mortgage and it’s actually pretty awesome. Plus, Our proprietary No Sweat™ Process makes the whole thing totally simple. When you buy your house your loan will have an interest rate. Down the road, interest rates could drop below what you bought your house for. Refinancing your mortgage allows you to take advantage of that lower rate which can help you free up money in your budget by lowering your monthly payments or provide you a one-time cash payment by tapping into your home’s equity. It’s like a little like giving yourself a raise. Which you totally deserve.