Frequently Asked Questions

Pre-qualification is an initial assessment based on information you provide about your income, assets, and debts. It gives you a general idea of what you may be able to borrow, but it is not a commitment or guarantee of financing.

Pre-approval goes a step further. Your loan originator collects documentation such as pay stubs, tax returns, and bank statements, and your information is reviewed more thoroughly. A pre-approval letter shows sellers that a lender has evaluated your financial profile and is likely to extend financing, subject to conditions such as a satisfactory appraisal and title review.

As a mortgage brokerage, Mountain State Financial Group, LLC works with multiple lending partners on your behalf. We help you gather the right documentation, submit your file for review, and match you with the loan program and lender best suited to your situation. The final lending decision is made by the lender, not the brokerage.

How much you can afford depends on several factors, including your gross monthly income, your existing monthly debts (such as car payments, student loans, and credit cards), and the type of loan program you choose.

Most loan programs use a debt-to-income ratio (DTI) to help determine eligibility. As a general guideline, many programs look for a total DTI (all monthly debts including the new mortgage payment) in the range of 43% to 50% of your gross income, depending on the program and your overall financial profile.

That said, just because you may qualify for a certain amount does not mean that is what you should borrow. Your decision should be based on what you are comfortable paying each month, not just what the guidelines allow. We encourage you to consider your lifestyle, savings goals, and long-term plans when deciding on a price range.

Your credit score does not change how much you can afford, but it does affect the interest rate and terms available to you, which impacts your monthly payment. A higher credit score typically means a lower rate and lower overall cost.

Your loan originator at Mountain State Financial Group, LLC can walk you through the numbers so you have a clear picture before you start shopping.

Closing costs are the fees and expenses you pay when your mortgage loan is finalized. They typically range from 2% to 5% of the loan amount and can include items such as the appraisal fee, title insurance, recording fees, prepaid taxes and insurance, and lender origination charges.

At Mountain State Financial Group, LLC, we cover certain upfront costs during the loan process, such as the appraisal and credit report fees, so you are not required to pay those out of pocket before closing. These costs are then included in your final closing costs at settlement. This is not a "no-cost" loan. All applicable fees are disclosed and accounted for at closing.

You will receive a Loan Estimate from the lender early in the process that outlines your estimated closing costs in detail. Before closing, the lender will provide a Closing Disclosure so you can review the final figures. Both of these documents are prepared and issued by the lender. Your loan originator can help you understand each line item and answer any questions.

Private Mortgage Insurance (PMI) is typically required on conventional loans when your down payment is less than 20% of the home's purchase price. PMI protects the lender in the event you default on the loan.

PMI is not the same as homeowner's insurance (also called hazard insurance). Homeowner's insurance protects you against damage to your property from events like fire, storms, or theft. PMI only protects the lender and does not provide any coverage for your home or belongings.

The cost of PMI depends on your loan amount, down payment, and credit score. It is usually paid as a monthly premium added to your mortgage payment, though in some cases it can be paid upfront or as a combination of both.

Once you reach 20% equity in your home, you may be eligible to have PMI removed. Your loan originator can explain the specific PMI requirements for your loan program and help you understand when and how it can be canceled.

Note that FHA loans have their own form of mortgage insurance (MIP) with different rules, and VA loans use a funding fee instead of mortgage insurance. Your originator can walk you through the differences.

Mountain State Financial Group, LLC works with multiple lending partners to offer a range of loan programs, including Conventional, FHA, VA, USDA, Jumbo, Adjustable Rate (ARM), Reverse Mortgage, and Non-QM options.

Each program has its own eligibility requirements, down payment minimums, and terms. Your loan originator will review your financial profile and goals to help identify which program is the best fit for your situation.

Down payment requirements vary by loan program. Here are some common minimums:

Conventional: As low as 3% for qualified borrowers. FHA: As low as 3.5% with a qualifying credit score. VA: Eligible veterans may qualify for 0% down. USDA: Eligible rural properties may qualify for 0% down.

Your specific down payment will depend on the loan program, property type, and your financial profile. Your loan originator can help you determine the minimum required for your situation and discuss whether a larger down payment might benefit you.

A typical mortgage process takes approximately 30 to 45 days from application to closing, though timelines can vary depending on the loan program, property type, and how quickly documentation is provided.

Staying organized and responding promptly to requests from your loan originator is the best way to keep things on track. We will guide you through each step so you know what to expect.

Mountain State Financial Group, LLC is a licensed mortgage brokerage. We are not a lender. Our job is to work on your behalf to find the right loan program and lending partner for your needs.

We guide you through the application, help you gather documentation, submit your file for underwriting review, and coordinate with the lender and title company through closing. The final credit decision, loan approval, and funding are handled by the lender.

Because we work with multiple lenders, we can often find competitive rates and terms that fit your specific situation.