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Mortgage FAQs | Common Home Loan Questions

Client education is a big part of our ethos at TK Team Lending – it’s part of Moving You Forward.

We do our best to ensure that our clients understand the home loan process, and the commitment they are entering into. We don’t just close loans — we help you build long-term financial stability. Please take a few minutes to scan through our Mortgage FAQs; it might provide the answers you need. If not, don’t hesitate to contact our team.

What is the first step in getting a mortgage?

The first step is to complete a secure application and meet with Tara for a mortgage planning session. This helps you understand your buying power, monthly payment options, and what you’re comfortable spending. A strong pre-approval also gives you a competitive edge when making an offer.

What’s the difference between pre-qualification and pre-approval?

  • Pre-Qualification: A quick estimate based on information you provide.
  • Pre-Approval: A full review of your credit, income, and assets by our team. Pre-approvals carry much more weight with sellers and real estate agents.

How much do I need for a down payment?

Down payments vary by loan program:

  • 3% down: Conventional first-time homebuyer
  • 5% down: FHA
  • 0% down: VA and USDA (eligible buyers/areas)
  • 1%–3% down: Select down-payment assistance options
  • Down payment is not one-size-fits-all — we help you choose what supports your long-term financial goals.

What type of mortgage is right for me?

The right mortgage depends on your credit profile, financial goals, and plans. We offer:

  • Conventional
  • FHA/VA/USDA
  • Jumbo
  • Renovation loans
  • 2-1 & 3-2-1 buydowns
  • HELOC & bridge loan options
  • Construction Loans
  • Reverse Mortgages

We walk you through each option, so you understand both the short-term and long-term impact.

How do interest rates affect my monthly payment?

Interest rates directly impact monthly payments — even a small change can shift affordability. Our team monitors the market daily and helps you lock in at the right time or explore options like buydowns to keep payments lower.

What documents will I need to provide?

Most buyers will need:

  • Recent pay stubs
  • W-2s and/or tax returns
  • Recent bank statements
  • Valid ID
  • Proof of assets
  • Self-employed clients may need business tax returns or P&L statements. We make the process easy through our secure document portal.

How long does the mortgage process take?

Most loans close in 21–30 days, depending on the loan type and appraisal timeline. We offer accelerated options when needed through select lenders.

Do I need perfect credit to buy a home?

No. We work with clients across the credit spectrum. FHA programs allow scores as low as 580, and we offer credit guidance to help you improve quickly if needed.

What are closing costs, and how much should I expect?

Closing costs typically range from 2–3% of the purchase price and include lender fees, title charges, escrow, and prepaid taxes/insurance. Sometimes, seller credits or lender programs can offset these costs.

What is mortgage insurance, and do I have to pay it?

Mortgage insurance (MI or PMI) protects the lender when putting less than 20% down. FHA loans include MI for a set period, while conventional MI can be removed once equity reaches 20%. We help you choose the option that minimizes your total cost over time.

Can I buy a home if I’m self-employed?

Yes – absolutely. We specialize in helping business owners and entrepreneurs. Depending on your situation, we can use:

  • Business or personal tax returns
  • Bank statement programs
  • Profit & loss statements
  • 1099 income
  • We tailor the approval path to your financial structure.

What is a 2-1 buydown and how does it work?

A 2-1 buydown allows the seller or builder to pay upfront to temporarily lower your rate for the first two years:

  • Year 1: Rate is 2% lower
  • Year 2: Rate is 1% lower
  • Year 3+: Rate returns to the permanent note rate

This helps ease the payment during the first years of homeownership.

When can I refinance my mortgage?

You can refinance whenever it makes financial sense. Most homeowners refinance to:

  • Lower their rate/payment
  • Remove mortgage insurance
  • Take cash out
  • Consolidate debt
  • Switch loan types
  • Market conditions change often — our team monitors your loan for opportunities.

What is a HELOC and how does it work?

A Home Equity Line of Credit (HELOC) allows you to borrow against your home’s value, similar to a credit line. It’s flexible and can be used for renovations, investments, or as a bridge loan when purchasing your next home.

Can I use gift funds for my down payment?

Yes. Most loan programs allow gift funds from family, and some allow gifts from close friends or partners. We’ll help you navigate proper documentation.

Do you offer down-payment assistance programs?

Yes – especially for Arizona buyers. We offer several options including:

  • Home in 5
  • Home Plus
  • Arizona Is Home
  • CHFA/Local programs

We match you to the program that maximizes assistance while minimizing monthly cost.

What should I avoid doing during the loan process?

To keep the process smooth, avoid:

  • Applying for new credit
  • Making large purchases (cars, furniture, etc.)
  • Transferring large sums without documentation
  • Changing jobs without speaking to us

When in doubt, reach out before making financial moves.

How does TK Team Lending communicate during the process?

We believe in transparency and consistent updates. Clients receive:

  • Weekly status updates
  • Clear checklists
  • Personalized guidance from start to finish
  • Direct access to our loan team via phone, email, and text
  • Your experience is our top priority.

Can I buy a home if I already own another property?

Yes – we help with:

  • Second homes
  • Investment properties
  • Bridge financing
  • Equity access

We’ll structure the loan to support your overall financial strategy.

How long does the loan process take?

From contract to close is typically 30 days. It may take longer with certain loan products.

How quickly will I learn if I qualify for a loan?

During the mortgage planning meeting we will go over the qualifications and what type of loan best suits your personal needs and wants. If your schedule permits, we can usually get you in for a meeting within the work week and you will know if you qualify.

I've had credit issues, should I still contact you?

Absolutely! We can discuss ways to improve your credit and how to prepare for your future home purchase. Some issues can be fixed quickly, whereas some will take longer. But it is important to start this process as soon as possible, so you know what you need to do to qualify for a home.

Why should I choose TK Team Lending?

Because we combine education, strategy, and service. Clients choose us for:

  • Personalized mortgage planning
  • Fair, transparent pricing
  • Fast closings
  • Local expertise
  • A team that genuinely cares

We don’t just close loans — we help you build long-term financial stability.

Contact TK Team Lending Today

Ready to explore your mortgage options? Contact us today for a free consultation and see how we can help you secure the best financing for your dream home. To get started on your loan process, call us at 480-344-1951, complete this quick inquiry form, or start the application process now.

480-344-1951

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