Your Sunnyvale Mortgage Questions Answered by Local California Experts

Down payment requirements vary by loan type. Conventional loans typically require 3-20%, FHA loans allow 3.5%, and VA loans offer 0% down for eligible veterans. Higher down payments may help in competitive situations.

Minimum credit scores vary by program. FHA loans accept scores as low as 580, conventional loans typically require 620 or higher, and portfolio loans may have flexible requirements for strong borrowers.

Most mortgages close in 30-45 days. Pre-approval takes 1-3 days, while full underwriting requires 2-3 weeks. Having complete documentation ready speeds up the timeline significantly.

You'll need pay stubs, W-2s, tax returns, bank statements, and identification. Self-employed buyers need additional documentation. Your loan officer provides a complete checklist based on your situation.

Pre-qualification is an estimate based on self-reported information. Pre-approval involves document verification and credit checks, giving you a firm conditional commitment that sellers take seriously.

Yes, jumbo loans are frequently used in Santa Clara County due to higher property values. These loans exceed conforming limits and typically require larger down payments and stronger credit profiles.

Closing costs typically range from 2-5% of the purchase price. They include lender fees, title insurance, appraisal, escrow, and recording fees. Your lender provides a detailed estimate upfront.

Yes, FHA loans work in Sunnyvale for properties meeting program requirements. They offer lower down payments and credit flexibility, making homeownership more accessible for first-time buyers.

PMI protects lenders when your down payment is less than 20% on conventional loans. It typically costs 0.5-1.5% of the loan amount annually and can be removed once you reach 20% equity.

Most lenders prefer DTI ratios below 43-50%. This measures your monthly debt payments against gross income. Lower ratios improve approval odds and may qualify you for better terms.

Self-employed buyers can use bank statement loans, profit and loss statement loans, or 1099 loans. These programs evaluate income through business deposits and financial statements rather than traditional documentation.

Fixed-rate mortgages offer payment stability for the entire term. ARMs start with lower rates that adjust periodically. Your best choice depends on how long you plan to own the property.

Discount points let you pay upfront to reduce your interest rate. Each point costs 1% of the loan amount. They make sense if you plan to keep the loan long enough to recoup the cost.

Yes, eligible veterans and service members can use VA loans in Sunnyvale. These loans offer 0% down payment, no PMI, and competitive rates for qualifying properties throughout Santa Clara County.

Pre-approval shows sellers you're a serious buyer with verified financing. It helps you move quickly in competitive situations and gives you a clear budget for your home search.

Rates vary by borrower profile and market conditions. Conventional and conforming loans typically offer the lowest rates, while portfolio and non-QM loans may have higher rates reflecting flexible underwriting.

DSCR loans qualify investors based on rental income rather than personal income. They're ideal for investment property purchases where the property's cash flow supports the mortgage payment.

Yes, ITIN loans allow borrowers without Social Security numbers to qualify for mortgages. These programs serve foreign nationals and others legally working in the United States.

Bridge loans provide short-term financing between property transactions. They help buyers purchase a new home before selling their current one, though they typically carry higher interest rates.

Bank statement loans qualify borrowers using 12-24 months of personal or business bank deposits. Lenders calculate income from deposits, making them ideal for self-employed buyers with complex tax returns.

Conforming loans meet Fannie Mae and Freddie Mac guidelines and typically offer lower rates. Non-conforming loans exceed limits or have flexible criteria, providing options when conventional financing doesn't fit.

First-time buyers can access FHA loans, conventional loans with low down payments, and community mortgage programs. Local programs may offer down payment assistance or favorable terms.

Interest-only mortgages let you pay just interest for an initial period, typically 5-10 years. Payments increase when principal payments begin. They suit buyers expecting income growth or short ownership periods.

Lenders order appraisals to verify property value matches the purchase price. A licensed appraiser inspects the home and compares it to recent sales. This typically takes 1-2 weeks to complete.

Some loan programs allow rolling closing costs into the loan amount. Alternatively, sellers may offer credits, or you can negotiate lender credits by accepting a slightly higher interest rate.

You'll receive a detailed explanation of the denial reasons. You can address the issues and reapply, explore alternative loan programs, or work with a mortgage broker to find suitable options.

Compare the annual percentage rate, loan terms, closing costs, and lender fees. Look beyond just the interest rate to understand total borrowing costs over the loan term.

Asset depletion loans qualify borrowers based on total assets rather than income. Lenders divide your assets by the loan term to calculate qualifying income, ideal for retirees or those with substantial savings.

Yes, you can refinance to lower your rate, access equity, or change loan terms. Most lenders require a minimum waiting period and sufficient equity before refinancing is available.

Check your credit reports, gather financial documents, avoid major purchases, and maintain stable employment. Save for down payment and closing costs, and get pre-approved before shopping seriously.

Property taxes are included in your monthly mortgage payment through an escrow account. Your lender collects taxes and insurance monthly, then pays them when due on your behalf.

You'll sign final loan documents, pay closing costs, and receive keys to your new home. The process typically takes 1-2 hours and involves reviewing and signing multiple documents.

Yes, rate locks protect you from rate increases during loan processing. Locks typically last 30-60 days. Timing your lock strategically can save money when rates are favorable.

Conventional loans typically require higher credit scores and larger down payments but avoid upfront mortgage insurance premiums. FHA loans accept lower scores and smaller down payments but require mortgage insurance.

Improve your credit score, increase your down payment, reduce debt, and compare multiple lenders. Rates vary by borrower profile and market conditions, so shopping around helps find competitive terms.