Frequently Asked Questions

Understand Your Mortgage

Loan Questions

What kind of loans do you provide?

Our most common loan programs are conventional, FHA, VA, USDA, as well as jumbo loans. We do offer other programs for people looking for specific terms. You can find more details about our offered loan programs and personalized services here

What is a Reverse Mortgage?

Reverse mortgages allow homeowners age 62+ (55+ for some proprietary reverse mortgages) to borrow against their primary residence equity, and receive the funds as a lump sum, fixed monthly payment, or line of credit. The loan doesn’t have to be repaid until the borrower sells, moves out, or passes away. (Equity is the difference between what you owe on your home [mortgage] and your home’s worth.)

What is a Bank Statement Loan?

Bank Statement loans allow you to qualify for a mortgage using your bank statements instead of tax returns. These loans are designed for borrowers who have strong credit and finances but don’t have traditional income, like self-employed workers.
To qualify, you’ll use the average of your deposits over a 12- or 24-month period. If your work doesn’t provide a W-2, this may be the loan for you.

What is a DSCR Loan?

Also known as Investor Cash Flow loans, DSCR loans are designed to help real estate investors secure financing with their rental property’s cash flow. Instead of relying on personal income, DSCR loans use the debt service coverage ratio (DSCR) to qualify.
DSCR is calculated by dividing the monthly rental income by principle, interest, property taxes, homeowners insurance and association dues.

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity in their home. HELOCs function like a credit card, giving access to funds up to a set limit, which can be used for expenses like renovations or debt consolidation. You only pay interest on the amount you borrow, and the repayment terms typically include a draw period followed by a repayment period.

Refinance Questions

How soon can you refinance a mortgage?

You can typically refinance after six months, but timing depends on loan type, lender and your financial situation. We at The Byram Group can help determine if now’s the right time based on your equity, credit and current interest rates.

How do you refinance a mortgage?

To refinance, call or email us at The Byram Group - we will review your credit, help you apply for your new loan and submit required documents. After approval, you’ll schedule a closing and start fresh with your new mortgage terms and payment structure.

When should you refinance a mortgage?

Refinancing makes sense when you can lower your interest rate, shorten your loan term, switch to a fixed rate or access equity for cash. If your current mortgage no longer fits your financial goals, it may be time to refinance.

What is a Cash-Out Refinance?

A cash-out refinance lets you replace your current mortgage with a new one for more than you owe — taking the difference in cash. Use it for renovations, debt consolidation, tuition, or unexpected expenses by tapping into your home’s equity.

How much does it cost to refinance?

Refinancing costs typically range from 2% to 6% of the loan amount and include fees such as appraisal, title insurance, and closing costs. Factors like your loan type, location, and credit score can significantly impact these expenses. Our team can help to provide strategies that can help minimize costs.

Credit Questions

What credit score do I need to buy a house?

A good credit score typically starts at 620 for conventional loans, while FHA and VA loans may accept scores as low as 500, though higher scores offer better terms. A strong credit score can help you secure lower interest rates, saving you significant money over the life of a home loan. We do everything we can to ensure you can responsibly afford a home.

How does my credit score affect my mortgage rate?

Your credit score plays a major role in determining your interest rate. Higher scores typically qualify for lower rates because they signal lower lending risk. Even a small increase in your score could save thousands over the life of your loan.

How can I improve my credit before applying for a mortgage?

Pay bills on time, reduce credit card balances, avoid opening new accounts, and review your credit report for errors. Even a few months of good habits can make a noticeable difference in your score and loan options.

Can I get approved for a mortgage if I have past credit issues or collections?

Yes — depending on the type of loan and how long ago the issues occurred. FHA and VA loans are often more flexible with past delinquencies or collections, especially if you’ve since demonstrated consistent on-time payments and financial stability. That said, we will still need to assess the situation, and is not guaranteed.

How long should I wait after paying off debt before applying for a mortgage?

You can apply as soon as we can see the updated balances on your credit report—typically within 30 to 45 days. Paying down debt early can improve your credit score and lower your debt-to-income ratio, both of which strengthen your mortgage application.

Misc. Questions

What documents will I need to apply for a mortgage?

Commonly required items include pay stubs, W-2s, tax returns, bank statements, ID, and information about your debts and assets. Having these ready early helps ensure a smoother, faster approval process.

How long does the mortgage process take?

The average mortgage process takes about 30 to 45 days from application to closing, depending on how quickly documents are provided and the complexity of the loan. Pre-approval can help speed things up once you find a home. It can also wrap up earlier than that as well, given perfect circumstances.

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

Pre-qualification gives you an estimate of how much you may be able to borrow, based on basic financial info. Pre-approval involves a full credit check and document review, making it a stronger indication to sellers that you’re a serious buyer.

Can I lock in my interest rate?

Yes. Once you’re under contract, you can lock in your rate for a set period (usually 30–60 days). This protects you from market rate increases while your loan is being processed.

How much does it cost to build a house?

The cost to build a house depends on a variety of factors like the size of the home you’re building, materials being used, customization and labor costs and geographic location. Other things to consider include land purchase, permits and fees, utility hookups and landscaping. If land isn’t included, this can reduce your costs, especially if you already own a lot.