Southwest Florida mortgage questions, answered plainly

Pre-qualification is a quick estimate based on what you tell us. Pre-approval means your credit, income and assets have been reviewed, so sellers and agents take your offer more seriously.

Usually a photo ID, recent pay stubs, the last two years of W-2s or tax returns, and two recent months of bank statements. Self-employed and investor loans use different documents, and we tell you exactly what your program needs.

Talking with us doesn't pull credit. When you apply, a credit report is run. Credit scoring models generally count several mortgage inquiries within a short shopping window as one.

It depends on the program, the appraisal and how quickly documents come in. Tell us your contract closing date up front and we plan the file around it.

A bank can only offer its own loans. A broker compares options across lenders and programs, which matters most when your income, credit or property doesn't fit the standard box.

It depends on the program. Conventional loans start at 3% down for eligible buyers and FHA at 3.5% with a 580 or higher credit score. Investment property loans usually need more.

FHA allows scores down to 580 with 3.5% down, or 500 to 579 with 10% down. Conventional loans generally start at 620. Higher scores usually mean better pricing.

Yes. FHA and conventional loans allow gift funds from family, documented with a signed gift letter and a record of the transfer.

Closing costs cover lender fees, the appraisal, title insurance, recording and prepaid items like insurance and tax reserves. Buyers usually pay most of them, but sellers can contribute within program limits. Your Loan Estimate lists them before you commit.

Instead of tax returns, the lender reviews 12 or 24 months of personal or business bank deposits to calculate your income. They help when write-offs make your tax returns look lower than what you earn.

A debt service coverage ratio loan qualifies an investment property on its rent compared with its payment, including taxes, insurance and HOA, rather than on your personal income.

For flips, auction purchases and properties a bank won't lend on yet. The loan is based mainly on the property's value, costs more than a bank loan and is short-term, so plan to sell or refinance.

When a lower rate or shorter term saves more than the closing costs over the time you will keep the loan, when you want to drop FHA mortgage insurance by moving to conventional, or when you need cash from your equity.

A cash-out refinance replaces your whole mortgage with a larger one and pays you the difference. A home equity line of credit is a second loan you draw on as needed, and your first mortgage stays in place.

On a conventional loan you can ask to cancel PMI once the balance reaches 80% of the original value, and it ends automatically at 78%. FHA mortgage insurance usually lasts for the life of the loan unless you put at least 10% down, in which case it ends after 11 years.

If the home is in a FEMA Special Flood Hazard Area and you have a mortgage, the lender will require it. Many homes in both cities are in those zones, so check the flood zone before you make an offer.

A short inspection that documents the roof shape, roof-to-wall connections, roof covering and window protection. Florida insurers must offer discounts for qualifying features, so it can lower your homeowners premium.

A Community Development District assessment pays for roads, utilities and amenities in some newer communities. It is usually billed with property taxes and counts toward your payment when you qualify.

Yes. A second home you use yourself is financed under second-home guidelines, usually with more down than a primary home. A home you rent out full-time is an investment property, which can include DSCR loans.