Question 1

How long does the mortgage approval process take in Millbrae?

Accepted Answer

The typical timeline runs 30-45 days from application to closing. Pre-approval takes 1-3 days. Competitive markets like Millbrae benefit from early preparation and complete documentation.

Question 2

What credit score do I need to buy a home in Millbrae?

Accepted Answer

Minimum scores vary by loan type. FHA loans accept scores as low as 580, while conventional loans typically require 620 or higher. Rates vary by borrower profile and market conditions.

Question 3

How much down payment do I need for a Millbrae home?

Accepted Answer

Down payments range from 0% for VA loans to 3% for conventional and 3.5% for FHA. Jumbo loans often require 10-20% depending on the loan amount and property type.

Question 4

What documents do I need to apply for a mortgage?

Accepted Answer

Most buyers need two years of tax returns, recent pay stubs, two months of bank statements, and photo ID. Self-employed applicants may use bank statements or 1099 documentation instead.

Question 5

Are Millbrae home prices considered jumbo loan territory?

Accepted Answer

Many Millbrae properties exceed the conforming loan limit of $806,500 for 2024. Jumbo loans serve higher-priced homes with competitive rates for qualified borrowers.

Question 6

What neighborhoods in Millbrae are popular with first-time buyers?

Accepted Answer

Areas near downtown and BART stations attract buyers seeking walkability and transit access. Proximity to Highway 101 and SFO appeals to commuters and frequent travelers.

Question 7

Should I choose a 15-year or 30-year mortgage?

Accepted Answer

Thirty-year terms offer lower monthly payments, while 15-year mortgages build equity faster with higher payments but less total interest. Your budget and goals determine the best fit.

Question 8

What's the difference between FHA and conventional loans?

Accepted Answer

FHA loans require lower down payments and credit scores but include mortgage insurance for the loan's life. Conventional loans offer more flexibility and can drop PMI at 20% equity.

Question 9

Can self-employed buyers qualify for mortgages in Millbrae?

Accepted Answer

Absolutely. Bank statement loans, 1099 loans, and profit-and-loss statement programs serve self-employed buyers without traditional W-2 income documentation.

Question 10

What are closing costs in San Mateo County?

Accepted Answer

Closing costs typically range 2-5% of the purchase price. This includes lender fees, title insurance, escrow fees, and prepaid items like property taxes and homeowners insurance.

Question 11

Do I need mortgage insurance?

Accepted Answer

FHA loans require mortgage insurance regardless of down payment. Conventional loans need PMI with less than 20% down. VA loans charge a funding fee but no monthly PMI.

Question 12

What's an adjustable-rate mortgage?

Accepted Answer

ARMs offer lower initial rates that adjust after a fixed period. A 5/1 ARM stays fixed for five years, then adjusts annually. They work well for buyers planning shorter ownership periods.

Question 13

Can I buy an investment property in Millbrae?

Accepted Answer

Yes. Investment property loans include DSCR programs that qualify based on rental income, conventional investor loans, and portfolio products for buyers with multiple properties.

Question 14

What's a DSCR loan and who uses it?

Accepted Answer

DSCR loans qualify investors based on property rental income rather than personal income. They're ideal for self-employed investors or buyers with multiple rental properties.

Question 15

How does proximity to SFO affect Millbrae property values?

Accepted Answer

Airport access attracts buyers who travel frequently for work. While noise can be a consideration in certain areas, convenience often outweighs concerns for many homeowners.

Question 16

What are mortgage points and should I buy them?

Accepted Answer

Points are prepaid interest that lowers your rate. One point costs 1% of the loan amount. They make sense if you plan to keep the home long enough to recoup the upfront cost.

Question 17

Can foreign nationals buy homes in Millbrae?

Accepted Answer

Foreign national loans serve international buyers without U.S. credit history or Social Security numbers. These programs typically require larger down payments, usually 30-40%.

Question 18

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

Accepted Answer

Pre-qualification is an estimate based on self-reported information. Pre-approval involves document verification and credit checks, giving you a stronger position when making offers.

Question 19

Are there special programs for veterans buying in Millbrae?

Accepted Answer

VA loans offer 0% down payment, no mortgage insurance, and competitive rates for eligible service members and veterans. San Mateo County doesn't impose VA loan limits for qualified borrowers.

Question 20

How much home can I afford in Millbrae?

Accepted Answer

Lenders generally approve debt-to-income ratios up to 43-50% depending on the program. Your income, debts, down payment, and credit profile all influence your purchasing power.

Question 21

What's a bank statement loan?

Accepted Answer

Bank statement loans use 12-24 months of business or personal bank deposits to calculate income. They serve self-employed buyers whose tax returns don't reflect true earning capacity.

Question 22

Can I use a HELOC for my down payment?

Accepted Answer

Using a HELOC from another property for a down payment is possible, but lenders count the payment in your debt-to-income ratio. This affects your overall qualification amount.

Question 23

What are ITIN loans?

Accepted Answer

ITIN loans serve borrowers without Social Security numbers who have Individual Taxpayer Identification Numbers. These programs help qualified buyers establish homeownership with alternative documentation.

Question 24

How does my debt-to-income ratio affect mortgage approval?

Accepted Answer

DTI compares monthly debt payments to gross income. Most programs accept up to 43-50% DTI. Lower ratios often qualify for better rates and terms.

Question 25

Should I get a rate lock?

Accepted Answer

Rate locks protect you from increases during your transaction, typically for 30-60 days. Lock when you're comfortable with the rate and your closing timeline is clear.

Question 26

What's an interest-only mortgage?

Accepted Answer

Interest-only loans let you pay just interest for a set period, lowering initial payments. They suit buyers expecting income growth or investors maximizing cash flow.

Question 27

Can I buy a fixer-upper with a mortgage?

Accepted Answer

Construction loans and renovation mortgages finance purchase plus improvements in one loan. They work for properties needing significant repairs or upgrades before move-in.

Question 28

What's the benefit of living near Millbrae BART station?

Accepted Answer

BART proximity provides direct access to San Francisco and peninsula job centers. Properties near transit often maintain strong value and appeal to commuters.

Question 29

How do property taxes work in San Mateo County?

Accepted Answer

Property taxes in San Mateo County average around 1.2% of assessed value. New purchases are assessed at sale price, with annual increases capped at 2% under Proposition 13.

Question 30

What's a bridge loan?

Accepted Answer

Bridge loans provide short-term financing to buy a new home before selling your current one. They help buyers make non-contingent offers in competitive markets.

Question 31

Can I refinance my Millbrae home?

Accepted Answer

Yes. Refinancing can lower your rate, shorten your term, or access equity. HELOCs and home equity loans also let you tap equity without refinancing your first mortgage.

Question 32

What makes Millbrae attractive to homebuyers?

Accepted Answer

Millbrae combines excellent schools, BART access, proximity to SFO, and a walkable downtown. The community appeals to families and professionals seeking suburban convenience with urban connectivity.

Question 33

How do I choose the right mortgage broker?

Accepted Answer

Look for local expertise, diverse loan options, and transparent communication. A broker with San Mateo County experience understands regional market dynamics and property requirements.

Millbrae Mortgage FAQ: Your Complete Guide to Home Financing in San Mateo County