Question 1

How early should I get pre-approved before buying a home?

Accepted Answer

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.

Question 2

What does the pre-approval process involve?

Accepted Answer

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.

Question 3

How long does a pre-approval letter last?

Accepted Answer

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.

Question 4

Does getting pre-approved hurt my credit score?

Accepted Answer

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.

Question 5

What documents do I typically need for pre-approval?

Accepted Answer

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.

Question 6

How much do I need for a down payment?

Accepted Answer

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

Question 7

What are closing costs and how much should I budget for them?

Accepted Answer

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.

Question 8

What is PMI and when can I have it removed?

Accepted Answer

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. PMI can be removed once your loan balance reaches 80% of the original home value, either through scheduled payments or appreciation. FHA loans have mortgage insurance premiums that work differently - Greg can explain the distinction for your specific loan type.

Question 9

What is the difference between pre-qualification and pre-approval?

Accepted Answer

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.

Question 10

What loan types are available for homebuyers?

Accepted Answer

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.

Question 11

When does refinancing actually make sense?

Accepted Answer

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.

Question 12

What is the difference between a rate-and-term refinance and a cash-out refinance?

Accepted Answer

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.

Question 13

How do I calculate the break-even point on a refinance?

Accepted Answer

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.

Question 14

Can I refinance if I recently purchased my home?

Accepted Answer

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.

Question 15

How long does the refinance process take?

Accepted Answer

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.

Question 16

Can self-employed borrowers qualify for a mortgage?

Accepted Answer

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.

Question 17

What documentation do self-employed borrowers typically need?

Accepted Answer

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.

Question 18

What is a bank statement loan?

Accepted Answer

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.

Question 19

Are there mortgage options for borrowers with non-traditional income?

Accepted Answer

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.

Question 20

Can I remove my spouse from the mortgage during divorce?

Accepted Answer

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.

Question 21

What is an equity buyout mortgage?

Accepted Answer

An equity buyout mortgage is a refinance used to buy out a co-owner's share of the home - most commonly in divorce. The remaining spouse refinances into a new loan large enough to pay off the existing mortgage and compensate the departing spouse for their equity. Greg will calculate whether the remaining borrower can qualify based on current income, credit, and the expected new loan amount before the settlement is drafted.

Question 22

How does a separation agreement affect mortgage qualification?

Accepted Answer

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.

Question 23

Can alimony or child support income be used to qualify for a mortgage?

Accepted Answer

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

Question 24

Does Greg provide legal or financial planning advice?

Accepted Answer

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.

Question 25

How does Greg support realtor partners?

Accepted Answer

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.

Question 26

How fast can Greg turn around a pre-approval for a buyer?

Accepted Answer

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.

Question 27

Can HR teams request mortgage education workshops for employees?

Accepted Answer

Yes. Greg offers free Lunch and Learn mortgage education workshops for companies and HR teams - available virtually or in-person, at no cost to the company. Sessions are 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.

Question 28

Does Greg work with financial planners on client referrals?

Accepted Answer

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.

Question 29

Does Greg work with divorce attorneys?

Accepted Answer

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.

Question 30

What states is Greg licensed in?

Accepted Answer

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.

Plain Answers to the Mortgage Questions Greg Hears Most.

Six Categories. Every Question Greg Hears.

Pre-Approval

Buying a Home

Refinancing

Self-Employed Borrowers

Divorce & Life Transitions

Realtors, HR & Partners

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Pre-Approval

Buying a Home

Refinancing

Self-Employed Borrowers

Divorce & Life Transitions

Realtors, HR Teams & Professional Partners

Every Situation Is Different. Greg’s Answer Will Be Too.

Related Resources

Homebuyer Guide

Refinance Guide

Mortgage Learning Center

Divorce Mortgage Checklist

Realtor Resources

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