Plain Answers to the Mortgage Questions Greg Hears Most.

Ideally 60 to 90 days before you plan to start seriously touring homes. Early pre-approval gives you a clear budget, strengthens your offer when you find the right property, and leaves time to address any credit or documentation issues before they become a problem at a critical moment.

Pre-approval involves a review of your income, assets, employment history, and credit profile. Greg will request documents such as pay stubs, W-2s, bank statements, and tax returns. From there he can provide a pre-approval letter outlining how much you qualify for and under what loan terms.

Most pre-approval letters are valid for 60 to 90 days. If your home search extends beyond that window, Greg can update your pre-approval with refreshed documentation. It is a straightforward process - not a full restart.

Pre-approval involves a hard credit pull, which may temporarily lower your score by a few points. However, multiple mortgage inquiries within a short window (typically 14 to 45 days) are often treated as a single inquiry by scoring models. The short-term impact is minor and worth the benefit of knowing exactly where you stand.

Most borrowers will need two years of W-2s and tax returns, recent pay stubs (last 30 days), two to three months of bank and investment account statements, a government-issued ID, and information on any existing debts or liabilities. Self-employed borrowers may need additional documentation - Greg will walk you through exactly what applies to your situation.

Down payment requirements vary by loan type. Conventional loans can go as low as 3% for qualified buyers per current Fannie Mae and Freddie Mac program guidelines. FHA loans require 3.5% down with a qualifying credit score per FHA program requirements. VA loans (for eligible veterans and active service members) and USDA loans (for eligible rural and suburban properties) can offer 0% down under their respective program guidelines. Greg will review which loan types you qualify for and explain the trade-offs of each down payment level.

Closing costs are fees paid at the end of the transaction to finalize the loan. They typically range from 2% to 5% of the loan amount and include lender fees, title insurance, appraisal, prepaid property taxes and homeowners insurance, and other third-party charges. Greg will provide a detailed Loan Estimate early in the process so there are no surprises at the closing table.

Private Mortgage Insurance (PMI) is typically required on conventional loans when your down payment is less than 20%. It protects the lender - not the borrower - and adds to your monthly payment. Under the Homeowners Protection Act, you have the right to request PMI cancellation once your loan balance reaches 80% of the original home value through scheduled payments, and lenders must automatically terminate it at 78%. Appreciation-based removal requires a formal appraisal and lender approval. FHA loans carry mortgage insurance premiums that operate under different rules - Greg can explain the distinction for your specific loan type.

Pre-qualification is an informal estimate based on self-reported income and debt figures - it involves no documentation review and no credit check. Pre-approval is a verified review of your financial profile using actual documents and a credit pull. In a competitive market, sellers and agents treat pre-approval as meaningful. Pre-qualification alone rarely carries weight in a purchase offer.

The most common options are conventional loans (Fannie Mae/Freddie Mac guidelines), FHA loans (government-backed, more flexible qualification), VA loans (for eligible veterans and active military), and USDA loans (for eligible rural and suburban properties). Each has different requirements around credit score, down payment, and debt-to-income ratio. Greg will match you to the right program based on your full picture.

Refinancing makes sense when the long-term savings outweigh the costs of completing the transaction. The most reliable way to evaluate this is the break-even calculation - how many months of lower payments it takes to recoup your closing costs. If you plan to stay in the home past that break-even point, refinancing likely makes financial sense. Greg will run this analysis for your exact numbers during a free strategy call.

A rate-and-term refinance replaces your existing mortgage with a new one at a lower rate or different term - the goal is to reduce your payment or pay off the loan faster. A cash-out refinance allows you to borrow against your home equity, replacing your existing mortgage with a larger loan and receiving the difference in cash. Each serves a different purpose, and Greg will help you identify which approach fits your goals.

Divide your total closing costs by your monthly payment reduction. If closing costs are $4,000 and your new payment is $200 lower per month, your break-even is 20 months. If you plan to stay in the home beyond that, the refinance has positive financial return. There are nuances around how a longer loan term affects total interest paid, which Greg covers in full during a strategy call.

Yes, though lenders often require a minimum period (typically 6 to 12 months) after closing before you can refinance - this is called a seasoning requirement. Some loan types or cash-out refinances may have stricter seasoning rules. If rates or your circumstances have changed significantly since you closed, it is worth having the conversation with Greg to understand your options and timeline.

A standard refinance typically takes 21 to 45 days from application to closing, depending on appraisal timelines, lender workload, and how quickly documentation is gathered. Homestead Financial Mortgage has a 14-day close capability for well-documented files. Greg will give you a realistic timeline based on your specific situation at the start of the process.

Absolutely. Self-employed borrowers qualify for mortgages every day - the process simply requires more documentation than a salaried borrower. Greg works regularly with business owners, freelancers, and independent contractors and understands how to present income in the way that gives lenders the most complete picture.

Most lenders require two years of personal tax returns, two years of business tax returns, a year-to-date profit and loss statement, and business bank statements. The challenge for many self-employed borrowers is that tax write-offs reduce taxable income - which is good for taxes but can look lower on paper than actual cash flow. Greg will review your documents before submission and identify the best documentation strategy.

A bank statement loan is a mortgage product that qualifies you based on 12 to 24 months of bank deposits rather than tax returns. This is particularly useful for borrowers whose taxable income does not reflect their actual cash flow due to legitimate business deductions. Greg can explain whether this product is a fit for your situation and walk through the trade-offs compared to a conventional loan.

Yes. Beyond bank statement loans, there are asset depletion loans (for high-asset, lower-income borrowers), DSCR loans (for real estate investors), and portfolio loans held by individual lenders with more flexible guidelines. Greg will identify which pathway makes the most sense for your income structure and goals.

Credit score requirements for self-employed borrowers are the same as for salaried borrowers on most loan programs. Conventional loans typically require a minimum score of 620, though 680 or higher qualifies you for better rate pricing. FHA loans allow scores as low as 580 with 3.5% down per current FHA program guidelines. The score floor matters less than the combination of score, income documentation, and debt-to-income ratio. Greg will review your full profile and identify which program gives you the best terms.

For an S-corp, lenders typically use your W-2 wages plus your proportional share of business net income from the K-1, with depreciation and amortization added back as non-cash deductions. For an LLC, lenders use your share of business income from Schedule E or the K-1, adjusted the same way. In both cases, lenders average the most recent two tax years - so a single down year pulls your qualifying income down meaningfully. Greg reviews your returns before submission and structures the income presentation to give lenders the clearest picture of your actual cash flow.

Yes, but removing a name from a mortgage requires a refinance - not just a modification to the deed. The remaining borrower must qualify for the new loan on their own income, credit, and debt load. Greg works with divorcing clients and their attorneys to plan this process and run feasibility analysis before the settlement is finalized, so there are no surprises after the decree is signed.

An equity buyout mortgage is a refinance that funds the departing spouse's equity share - the remaining spouse takes out a new loan large enough to pay off the existing mortgage and buy out the co-owner in a single transaction. Example: on a $400,000 home with a $200,000 existing mortgage and equal equity split, the remaining spouse refinances into a $300,000 loan - $200,000 retires the existing debt, $100,000 goes to the departing spouse. Greg will calculate whether the remaining borrower can qualify on their own income, credit, and the projected new loan amount before the settlement is drafted.

A finalized, signed separation agreement is typically required before a lender will underwrite a new loan tied to the divorce. Key terms - such as who retains the home, how equity is divided, and any support obligations - affect the qualifying income and debt calculation. Greg recommends involving him early in the process so the mortgage implications are accounted for before the agreement is signed.

Yes, with conditions. Per Fannie Mae income guidelines, support income must be documented as court-ordered, received consistently for at least six months prior to application, and expected to continue for at least three years from the date of application. Greg will review your specific support arrangement and determine how it factors into your qualifying income - and flag any documentation gaps before you apply.

No. Greg provides mortgage strategy only - he does not offer legal advice, draft agreements, or make financial planning recommendations. He works alongside your attorney and financial planner, communicating in the terms they need to do their jobs well. His role is to make sure the mortgage piece of a complex situation is handled with the same care and clarity as the legal and financial pieces.

Greg offers fast, reliable pre-approvals with proactive communication throughout the transaction. He updates realtor partners at every milestone, does not miss calls, and resolves issues before they become deal problems. He also offers co-marketing support, client education workshops, and a referral partnership structure for agents who want a consistent, dependable lending partner.

For well-documented buyers with straightforward income, same-day or next-business-day pre-approvals are achievable. Greg prioritizes speed without cutting corners - the pre-approval letter reflects a genuine underwriting review, not a quick estimate that falls apart later.

Yes - Greg offers free Lunch and Learn mortgage education sessions for companies and HR teams, with no cost to the organization and no sales pitch to employees. Sessions are available virtually or in-person, tailored to your workforce, and delivered in plain language. Topics range from first-time homebuying basics to refinancing, relocation, and employee mortgage benefit programs. Contact Greg to discuss scheduling.

Yes. Greg partners with financial planners who need a mortgage strategist they can trust with clients making major financial decisions. He communicates clearly, respects the broader financial plan, and does not cross into investment advice or financial planning. He is a resource your clients will thank you for recommending.

Yes. Greg regularly supports divorce attorneys and mediators by providing mortgage feasibility analysis, equity buyout calculations, and refinance planning for clients navigating property division. He communicates in the terms attorneys need and operates within his lane - mortgage strategy only, not legal guidance.

Greg is personally licensed in Missouri, Illinois, and Indiana. Homestead Financial Mortgage, the company Greg owns, is licensed in 21 states, so even outside Greg's three states a licensed colleague on his team can often serve you. Contact Greg directly or schedule a call to confirm whether he can serve your state.