Mortgage questions, answered plainly.

A pre-qualification is an estimate based on what you tell us. A pre-approval means we have pulled credit and verified your income and assets, so the letter is built on documents rather than a conversation. Listing agents know the difference, which is why a pre-approval carries weight with an offer.

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Once we have your application, credit, and the documents on our checklist, most buyers have a letter within one to two business days. If you have already found a home and are writing an offer, tell us on the form and we prioritize the file. Call (267) 241-9900.

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Yes. Send your agent to this page or have them call (267) 241-9900. You can request a pre-approval here with no Social Security number on the first form. Agents who want a standing partnership can use the Partners form. Partners →

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For most salaried borrowers: recent pay stubs, the last two years of W-2s, two months of bank statements, and a photo ID. Self-employed borrowers add two years of tax returns. Nothing is needed for the short form on this site; the documents come after the first call.

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A mortgage pre-approval uses a hard credit inquiry, which typically has a small, temporary effect. Credit scoring models treat multiple mortgage inquiries inside a short shopping window as a single event, so comparing lenders within that window does not compound the impact.

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The letter is tied to the age of the documents behind it. When pay stubs, statements, or the credit report get too old, we refresh them and reissue the letter. If your search runs long, tell your officer and it is a quick update rather than a new application.

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Yes, and it is the better order. A pre-approval tells you the price range that actually works, and it means you can write an offer the day you find the house instead of scrambling for paperwork.

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Less than most people expect. Conventional loans allow 3% down for qualifying first-time buyers, FHA allows 3.5%, and VA and USDA allow $0 down for eligible borrowers and properties. Pennsylvania's PHFA and New Jersey's NJHMFA add down payment and closing cost assistance for buyers who meet their limits.

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Usually yes. For most programs, a first-time buyer is anyone who has not owned a primary residence in the past three years. Certain programs also count single parents and displaced homemakers who owned only with a former spouse. Your officer confirms which definition applies to the program you are using.

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PHFA is the Pennsylvania Housing Finance Agency. Its Keystone programs offer first mortgages with below-market features for eligible Pennsylvania buyers, and K-FIT is its forgivable down payment and closing cost assistance loan. Income and purchase price limits vary by county and change periodically, so we check the current limits for your county rather than quoting a figure here.

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The New Jersey Housing and Mortgage Finance Agency offers a first mortgage program paired with down payment assistance for eligible buyers, plus additional assistance for first-generation buyers. Limits and assistance amounts are set by the agency and updated over time; our Hamilton office works with these programs daily.

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It depends on the program. FHA is generally the most flexible on score, conventional loans price better as scores rise, and VA and USDA sit in between. Rather than a single cutoff, the honest answer is that your score determines which programs are open to you and what they cost. Tell us your approximate score on the short form and we will tell you what fits.

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Yes. Gift funds from a family member are allowed on conventional, FHA, VA, and USDA loans, with a signed gift letter and documentation of the transfer. Some programs limit gifts from non-relatives, and a gift cannot be a loan in disguise, so tell your officer early and we will give you the exact paperwork.

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Closing costs cover lender fees, title, appraisal, recording, and the prepaid items such as taxes and insurance that set up your escrow. Sellers can contribute toward them, up to a cap that depends on the loan program and your down payment. State assistance programs and lender credits are the other common ways to reduce cash to close.

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When the closing costs pay for themselves before you expect to sell or refinance again. Divide the costs by the monthly savings to get a break-even month, then compare that to how long you plan to stay. Refinancing also makes sense when the goal is not savings but structure: a shorter term, removing mortgage insurance, or converting an adjustable rate to fixed.

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A rate-and-term refinance changes the rate, the term, or both, without taking equity out; the new loan roughly equals the old balance plus costs. A cash-out refinance borrows more than you owe and pays you the difference at closing. Cash-out loans usually require more equity and price slightly higher because the lender's exposure is larger.

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Yes, through a cash-out refinance. The trade-off is real and worth understanding: you convert unsecured debt into debt secured by your home, and you may be spreading it over a longer term. It can substantially lower your monthly outlay and interest cost, and we run the numbers both ways so you can see the total cost, not just the payment.

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It depends on the program and the purpose. Rate-and-term refinances generally allow higher loan-to-value ratios than cash-out, and FHA and VA streamline refinances have their own rules. Your officer will tell you the current maximum for your situation once we know the loan type and an estimate of value.

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Often, yes. Under federal law you can request cancellation of PMI on a conventional loan once your balance reaches 80% of the original value, provided you are current, and the servicer must cancel it automatically at 78%. If your home has appreciated, a refinance can remove PMI sooner, and we compare that against simply requesting cancellation.

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Yes, and it is one of the most common reasons to refinance. FHA mortgage insurance on most loans stays for the life of the loan, while conventional PMI can be cancelled. Once you have enough equity and your credit supports conventional pricing, the switch can remove that cost permanently.

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FHA Streamline and VA IRRRL (Interest Rate Reduction Refinance Loan) are simplified refinances for borrowers who already have an FHA or VA loan. They require less documentation and usually no new appraisal, and they must produce a tangible benefit to you, such as a lower payment. They cannot be used to take cash out.

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A refinance carries the same categories of cost as a purchase loan: lender, title, appraisal, and recording, plus setting up a new escrow. A "no-cost" refinance means those costs are paid with a slightly higher rate or rolled into the balance rather than paid at closing. Neither is free; the question is which structure is cheaper over the time you will keep the loan.

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Yes. Conventional investment property loans qualify you on your personal income and credit and require a larger down payment than a primary residence. DSCR loans qualify the property on its rental income instead of your tax returns. Which one is better depends on your income picture and how many properties you plan to hold.

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DSCR stands for debt service coverage ratio: the property's rent divided by its mortgage payment including taxes, insurance, and any HOA. A DSCR loan qualifies on that ratio rather than on your personal income, so there are no tax returns or W-2s. Terms, minimum ratios, and reserve requirements are set by each investor, and we match your deal to the one whose guidelines fit.

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Yes. For properties you already own, lenders use the income reported on your tax returns. For a property you are buying, they use a signed lease or the appraiser's rent schedule, and count a portion of it rather than the full rent to allow for vacancy and expenses. The exact treatment depends on the program.

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Yes, and it is one of the best entry points into investing. Because it is your primary residence, owner-occupied financing applies: FHA allows 3.5% down on 2- to 4-unit properties, and conventional and VA have owner-occupied multi-unit options. Rent from the other units can help you qualify.

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Conventional, FHA, VA, and USDA loans are made to individuals, not entities. Most DSCR and other investor loans allow closing in an LLC with a personal guarantee. If holding title in an entity matters to you, say so at the start so we route the file to the right program.

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Conventional guidelines cap the number of financed properties a borrower can have and require additional reserves as the count grows. DSCR investors set their own limits, and some have none. If you are building a portfolio, we plan the financing sequence so you do not hit a wall on property five.

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From your tax returns, usually the last two years, averaged. Lenders add back certain non-cash deductions such as depreciation and subtract items that will not continue. A business that is growing may be able to use the more recent year; one that is declining will typically be qualified on the lower figure. We run this calculation before you apply so there are no surprises.

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Often, yes. If your returns do not reflect your real cash flow, a bank statement loan qualifies you on deposits into your business or personal accounts over 12 or 24 months instead of on taxable income. It costs somewhat more than an agency loan, and for many business owners it is the difference between a loan and no loan.

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A non-QM loan that uses 12 or 24 months of bank statements as income documentation. The lender totals eligible deposits, applies an expense factor to business accounts, and averages the result as monthly income. No tax returns are required. Each investor sets its own expense factors, minimum credit, and down payment, so terms vary.

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Two years is the standard. Some programs accept one year of self-employment when it is in the same line of work as prior employment, or when there is a longer history in a related field. If you are close to a milestone, tell us the dates and we will check the current guideline rather than guess.

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Lenders treat 1099 income as self-employment income, so tax returns and a two-year history are the starting point. Some non-QM programs qualify on 1099 forms alone without full returns. Which route is better depends on what your Schedule C shows after expenses.

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Yes, with a cash flow analysis showing the withdrawal will not harm the business. Lenders want to see that the funds are yours to take and that the business can operate without them. Plan this early, because moving a large sum right before closing creates paperwork.

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Your DTI is your monthly debt payments, including the proposed mortgage, divided by your gross monthly income. Lenders use it to judge whether the payment is sustainable. Each program has its own maximum, and automated underwriting can allow higher ratios when other factors are strong. It is the single number that most often decides how much house you can buy.

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The payment counts toward your DTI even if the loan is deferred or in forbearance. If the credit report shows a payment, most programs use it; if it shows zero, the program applies a percentage of the balance or the fully amortizing payment instead. The treatment differs between conventional, FHA, VA, and USDA, and it can change which program is best for you.

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Frequently, yes. Medical collections are treated more leniently than other types, small balances may not need to be paid, and late payments matter less as they age. What lenders look for is a recent, consistent payment history. Send us the report and we will tell you what, if anything, needs to be addressed before you apply.

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Each program has its own waiting period, measured from the discharge or completion date, and shorter periods are sometimes available when the event was caused by documented extenuating circumstances. Rather than quote a table that may be out of date, we check your dates against the current guidelines for each program and tell you which ones are open now and which open soon.

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Yes. A non-occupant co-borrower adds their income and debts to the application and is equally responsible for the loan. Conventional and FHA allow it with some restrictions on how much of the qualifying income can come from the co-borrower. It helps most when your DTI is the issue, not your credit.

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FHA is more forgiving on credit and allows 3.5% down, but its mortgage insurance usually stays for the life of the loan. Conventional requires stronger credit for the best pricing, allows as little as 3% down for qualifying first-time buyers, and its mortgage insurance can be cancelled once you reach 20% equity. With good credit, conventional is usually cheaper over time; with thinner credit, FHA often gets you in the door.

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Veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses, subject to service requirements set by the VA. Eligibility is confirmed with a Certificate of Eligibility, which we can request for you. VA loans allow $0 down, have no monthly mortgage insurance, and carry a funding fee that some borrowers are exempt from.

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A $0-down loan for moderate-income buyers purchasing in areas the USDA designates as rural, which includes many suburban and exurban communities in Pennsylvania and New Jersey. Eligibility depends on the property's location and your household income against the county limit. Both are checked on the USDA's own lookup tools before we go further.

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When it exceeds the conforming loan limit for the county, which the Federal Housing Finance Agency sets each year. Jumbo loans are not sold to Fannie Mae or Freddie Mac, so each investor sets its own credit, reserve, and down payment requirements. We check the current limit for your county and, if the loan is jumbo, match it to an investor whose guidelines fit.

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Yes. FHA 203(k) and conventional renovation loans let you borrow against the value of the home after the work is done, so the purchase and the renovation are one loan with one payment. The process involves contractor bids, an appraisal based on the finished value, and draws as work is completed. It suits buyers who want a house that needs work rather than a finished one.

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No. The calculator is an illustration built on the assumptions you type in. A pre-approval requires an application and verification of income, assets, and credit, and it is the only number an agent or seller will rely on.

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Around 30 days from an accepted offer is typical for a purchase, and faster is possible when the file is complete early. The appraisal, title work, and underwriting run in parallel; delays usually come from missing documents or a low appraisal, not from the lender's clock.

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The formal review of your file against the program's guidelines. An underwriter verifies income, assets, credit, and the property, and issues an approval with conditions: the remaining items needed before closing. We review files against the guidelines before submission so that most conditions are minor.

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A commitment from the lender to hold a specific rate for a set number of days, typically enough to cover the expected closing date. Until you lock, the rate can move with the market. We lock when you have a signed contract and a closing date, and we tell you the expiration so nothing slips past it.

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The total you bring to closing: down payment plus closing costs and prepaid items, minus any deposit you already made, seller credits, and lender credits. It appears on your Closing Disclosure, which you receive at least three business days before closing so there are no surprises at the table.

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The loan is based on the lower of the price and the appraised value, so a low appraisal means either a larger down payment, a renegotiated price, or a combination. Many contracts include an appraisal contingency for exactly this situation. We tell you the options the day the report arrives.

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Do not open new credit, finance a car or furniture, change jobs, move large sums between accounts, or make big cash deposits without talking to your officer first. Lenders re-check credit and employment right before closing, and any of those can change the approval.

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Stellar Mortgage Corporation, company NMLS #2190975, is licensed in 19 states, with offices in Southampton, Pennsylvania and Hamilton, New Jersey. Every loan officer is individually licensed. The current list is on our licensing page and can be verified at NMLS Consumer Access.

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Stellar arranges loans through third-party lenders. In practice that means we shop your file across many lenders' programs and pricing rather than one company's, which is how we place unusual files, such as self-employed borrowers or investors, that a single-lender shop cannot.

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Yes. Our Hamilton, New Jersey office works with clients in Spanish. Ask when you call and we will match you with the right officer.

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The short form on this site does not ask for a Social Security number or income. Full applications go through a secure, encrypted application system. Our privacy policy explains what we collect, how it is used, and your choices, including how to opt out of marketing.

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