Mortgage questions, answered straight
The questions I hear most often, answered honestly, including the parts where the real answer is "it depends, send me your numbers."
- How do mortgage brokers actually get paid?
- One of two ways, never both on the same loan: either the lender pays me (built into your rate, not an extra cost you pay directly), or you pay me directly and it shows up itemized as an origination charge on your Loan Estimate. Federal rules specifically prohibit a broker from being paid by both the lender and the borrower on the same transaction, and my compensation can't be structured to change based on your loan's rate or terms. I'll tell you plainly which structure applies to your loan before you sign anything.
- How much income do I need to qualify for a mortgage?
- There's no single number. Lenders look at your debt-to-income ratio (your monthly debts, including the new mortgage payment, divided by your gross monthly income), and the maximum allowed varies by loan program, credit profile, and compensating factors like reserves or a larger down payment. A number you read online may not reflect your actual program's guidelines. Send me your real numbers and I'll tell you where you land.
- What is the "3-7-3 rule" I keep seeing mentioned?
- It's shorthand for a federal mortgage disclosure timeline (TRID): you must receive a Loan Estimate within 3 business days of applying, that Loan Estimate must be provided at least 7 business days before closing, and you must receive a Closing Disclosure with your final terms at least 3 business days before closing. It exists so you're never rushed into signing without time to actually review the numbers. A handful of changes (like your APR becoming inaccurate) can restart that final 3-day clock.
- Should I get a fixed-rate or adjustable-rate mortgage?
- It depends on how long you plan to stay in the home and how much payment certainty you want. A fixed rate never changes for the life of the loan, which is simpler to plan around. An adjustable-rate mortgage (ARM) typically starts with a lower rate for an initial period, then adjusts. It can make sense if you're confident you'll move or refinance before the adjustment period hits, but it carries real risk if your plans change. I'll walk through both with your actual numbers rather than give you a generic answer.
- How long does mortgage pre-approval actually take?
- Often within 24 hours once I have your basic financial information: income, assets, and a credit pull. It can take longer if your financial picture is more complex (self-employment income, for example), but there's rarely a good reason it should take days. If you're on a timeline, tell me up front and I'll prioritize it.
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