Burlingame Mortgage FAQ: Your Questions Answered by Local Experts

Down payment requirements vary by loan type. Conventional loans can require as little as 3% down, FHA loans 3.5%, and VA loans $0 for eligible veterans. Higher down payments often secure better rates and terms.

Minimum credit scores vary by loan program. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Better scores unlock more favorable rates and terms.

Most mortgage applications move from prequalification to closing in 30-45 days. Complex scenarios or documentation delays can extend this timeline. Getting preapproved before house hunting streamlines the process significantly.

Standard documentation includes recent pay stubs, W-2s, tax returns, bank statements, and identification. Self-employed buyers may need additional business documentation. Your loan officer will provide a complete checklist.

Yes, many Burlingame properties exceed conforming loan limits, making jumbo loans frequently necessary. These loans typically require stronger credit, larger down payments, and more substantial reserves than conforming loans.

Prequalification provides an estimate based on self-reported information. Preapproval involves document verification and credit checks, giving you a stronger position when making offers on Burlingame properties.

Yes, FHA loans work in Burlingame for properties meeting program requirements. These loans offer lower down payments and more flexible credit standards, though property condition standards must be met.

Closing costs typically range from 2-5% of the purchase price. These include lender fees, title insurance, escrow fees, and prepaid items like property taxes and insurance. Rates vary by lender and transaction details.

Fixed-rate mortgages provide payment stability over the loan term. ARMs offer lower initial rates but adjust periodically. Your choice depends on how long you plan to own the property and risk tolerance.

PMI protects lenders when buyers put down less than 20%. It adds to your monthly payment until you reach 20% equity. Some loan types have different mortgage insurance structures.

Yes, self-employed buyers have multiple options including bank statement loans, profit and loss statement loans, and 1099 loans. These programs evaluate income differently than traditional W-2 verification methods.

DSCR loans evaluate investment properties based on rental income rather than personal income. Real estate investors use these to finance properties without traditional employment verification requirements.

Lenders compare your monthly debt payments to gross income. Most programs prefer ratios below 43-50%, though some allow higher with compensating factors. Lower ratios typically qualify for better terms.

California offers various first-time buyer programs with down payment assistance and favorable terms. Some have income limits and property price restrictions. Your loan officer can identify programs you qualify for.

Conventional loans typically require higher credit scores and down payments but offer more flexibility. FHA loans accept lower credit scores and down payments but include mortgage insurance for the loan life.

Eligible veterans, active military, and qualifying spouses can use VA loans with $0 down and no PMI. These loans offer competitive rates and flexible credit requirements for qualifying buyers.

Points are upfront fees paid to reduce your interest rate. Each point costs 1% of the loan amount. Buying points makes sense if you plan to keep the mortgage long enough to recoup the cost.

Affordability depends on income, debts, down payment, and current rates. Lenders typically approve loans where total housing costs stay below 28-36% of gross monthly income. Rates vary by borrower profile and market conditions.

Lenders collect monthly portions of property taxes and insurance, holding funds in escrow to pay these bills when due. This ensures properties remain insured and taxes paid throughout the loan term.

Multiple low down payment options exist, including 3% conventional loans, 3.5% FHA loans, and $0 down VA loans. Each has specific requirements and trade-offs regarding rates and insurance.

The interest rate determines your monthly payment. APR includes the rate plus fees, showing the total cost of borrowing. APR provides a more complete picture for comparing loan offers.

Bridge loans provide short-term financing using existing home equity to purchase before selling your current property. These help buyers make non-contingent offers in competitive markets like Burlingame.

Portfolio ARMs are adjustable-rate mortgages held by lenders rather than sold to agencies. They offer flexibility for unique borrower situations that don't fit conventional lending guidelines.

Yes, foreign national loans help non-U.S. citizens purchase property without traditional domestic credit history or income documentation. These programs have specific down payment and documentation requirements.

Interest-only loans let borrowers pay just interest for an initial period, reducing monthly payments. After the interest-only period, payments increase to include principal. These suit specific financial strategies.

Bank statement loans use deposit history instead of tax returns to verify income. Lenders review 12-24 months of statements, making them ideal for self-employed buyers with business write-offs.

Appraisals verify the property value matches the purchase price, protecting both buyer and lender. If the appraisal comes in low, you may need to renegotiate, increase your down payment, or walk away.

Homeowners can refinance to lower rates, access equity, or change loan terms. Rate-and-term refinances adjust your mortgage structure, while cash-out refinances convert equity to cash. Rates vary by borrower profile and market conditions.

Asset depletion loans qualify borrowers based on liquid assets rather than traditional income. Lenders calculate a theoretical monthly income by dividing total assets by the loan term, useful for retirees or high-net-worth individuals.

Lenders require homeowners insurance to protect their collateral investment. Your monthly payment typically includes insurance in escrow. Shop for coverage before closing to ensure adequate protection at competitive rates.

Construction loans fund building or major renovations, disbursing money in stages as work progresses. After completion, they often convert to permanent mortgages. These require detailed project plans and contractor agreements.

Yes, ITIN loans allow borrowers without Social Security numbers to obtain mortgages. These programs require alternative documentation and typically larger down payments than traditional loans.

Local brokers understand San Mateo County's market dynamics and have relationships with lenders offering competitive programs. They can match your situation with the right loan type and guide you through the process.

California's Proposition 13 limits property tax increases to 2% annually. New purchases reset to 1% of sale price plus local assessments. Your lender typically collects these monthly through escrow.

Denial reasons vary from credit issues to insufficient income. Your lender must explain the decision. Often, working to improve credit, reducing debt, or trying alternative loan programs can lead to approval.