Frequently Asked Questions

At closing, you sign final loan documents including the Note, Deed of Trust or Mortgage, Closing Disclosure, and government forms. You bring a cashier's check or wire for closing costs and any down payment. The closing typically takes 30-60 minutes at a title company or attorney's office. Funds release the same day for purchases (sometimes next day for refinances due to a 3-day right of rescission).

Refinancing a mortgage usually takes about 30 to 45 days to close. The timeline depends on how quickly documents are submitted and whether an appraisal or title work takes extra time. Staying responsive to your lender helps keep the process moving smoothly.

In most cases, yes—you’ll need an appraisal to pull equity from your home. The appraisal confirms your home’s current value so the lender knows how much equity you have. Some programs may allow an appraisal waiver if recent market data supports your home’s value.

Many mortgage calculators let you include property taxes and homeowners insurance, but the amounts may not match your exact local costs. Because property taxes and insurance vary by location and property type, be sure to adjust the numbers or confirm them with your lender.

For a reverse mortgage, borrowers typically need to provide identification, proof of residency, current mortgage statements, and property tax information. Depending on the lender, additional financial records may be requested.

From application to closing, the fixed rate mortgage process usually takes 30 to 45 days. The timeline can vary based on how quickly you provide documents, how busy the lender is, and the appraisal results. Staying organized can help prevent delays.

A second home loan helps you finance a vacation home or seasonal property in addition to your primary residence, and lenders may have stricter requirements than they do for a primary home purchase.

For a jumbo loan, lenders typically require the standard income and asset documents, and they may also ask for additional records such as multiple years of tax returns, bank statements, and proof of reserves. Because jumbo loans are larger than smaller loans, the review is more detailed.

To qualify for a jumbo loan, borrowers generally need strong credit scores, a low debt-to-income ratio, and significant income. They often also need a larger down payment and strong financial reserves.

To qualify for a conventional loan, borrowers are more likely to qualify if they have higher credit scores, stable income, and manageable debt. Conventional loans may also require a larger down payment, though some allow as little as 3 percent down.

A construction loan is a short-term loan used to finance the building of a new home. The funds are released in stages, called draws, as the project progresses. Once construction is complete, it usually converts into a standard mortgage.

You would need a jumbo loan when you’re buying a home priced above the conforming loan limits set by Fannie Mae and Freddie Mac. Jumbo loans are often used in high-cost housing markets or for luxury properties.

Yes. Once you qualify, you can typically use your home’s equity funds for almost any purpose. Common uses include home improvements, paying off higher-interest debt, funding education, or covering major expenses.

Some mortgage calculators will show or let you add mortgage insurance if your down payment is less than 20%. However, because the cost of insurance varies by program, your lender will provide the most accurate figure.

A USDA loan is a government-backed mortgage for homes in eligible rural and suburban areas. It offers zero down payment and competitive interest rates, which makes it popular with first-time buyers.

FHA loans are available to borrowers with fair credit, steady income, and a manageable debt-to-income ratio. They can be especially helpful for buyers who may not qualify for conventional financing.

Closing a jumbo loan may take slightly longer than other loans, often 45 to 60 days. The larger loan size and stricter requirements can extend the process, so staying responsive to lender requests helps avoid delays.

Yes. Construction loans require an appraisal, and the appraiser reviews the building plans and estimates the future value of the completed home. This helps confirm the project is worth the financing amount.

Yes. Conventional loans require an appraisal to verify the property’s value. The home must meet market standards, and the appraised value must support the loan amount. This step is necessary to finalize approval.

A VA loan is a government-backed mortgage for eligible veterans, active-duty service members, and some surviving spouses. It offers no down payment and no private mortgage insurance.

Most borrowers are eligible for a fixed rate mortgage if they meet basic credit, income, and debt-to-income requirements. Lenders also consider your employment history and down payment amount. Your exact eligibility depends on your financial profile.

From application to closing, the mortgage process typically takes 30 to 45 days. The exact timeline depends on how quickly you provide documents and whether any issues come up with the appraisal or title. Staying organized helps keep the process on track.

Pre-qualification is an informal estimate of how much you might borrow based on stated income and credit. Pre-approval is a verified commitment based on reviewed pay stubs, tax returns, bank statements, and a credit pull. Sellers and agents take pre-approvals seriously. City First issues pre-approvals after a complete application and credit review.

A calculator can give you a starting estimate of how much house you can afford, but affordability depends on more than just your monthly payment. When deciding how much you can borrow, lenders also look at your income, debts, and credit score.

A fixed rate mortgage works by keeping the same interest rate for the entire loan term. This makes your principal and interest payments predictable, which can help with long-term budgeting. Many first-time buyers choose a fixed rate mortgage for stability and peace of mind.

A cash-out refinance replaces your current mortgage with a new one, lets you borrow more than you owe, and gives you the difference in cash. A HELOC (home equity line of credit) is a revolving line of credit, more like a credit card, that lets you access funds as needed while keeping your existing mortgage.

Yes, an appraisal is required for a reverse mortgage to determine the home’s current value. The appraisal is used to calculate how much equity is available for borrowing.

Eligibility for an adjustable rate mortgage depends on your credit, income, and debt-to-income ratio. Because payments can rise in the future, lenders may also review your financial stability more closely. Borrowers who qualify often have steady income and a good credit history.

To qualify for a renovation loan, eligibility depends on your credit, income, and debt-to-income ratio. Renovation loans are designed for borrowers who want to purchase a home that needs repairs and have the financial ability to manage the project.

For the best estimate, enter your loan amount, interest rate, loan term, and your expected property taxes and insurance into the calculator. If you’re not sure of these numbers, you can use average estimates to get a rough idea, then refine them with your lender.

For a construction loan, lenders typically require financial documents as well as building plans, a signed contract with the builder, and a detailed budget. Proof of permits may also be required.

Yes. Your loan program type can impact what kind of house you can get, because certain programs have property requirements. For example, FHA loans often require homes to meet minimum safety standards, while VA loans may have specific appraisal rules. Your loan officer can guide you on which types of homes fit your program.

To qualify for a construction loan, borrowers typically need strong credit, steady income, and detailed building plans. Lenders may also require a higher down payment than with traditional mortgages.

Closing costs affect your purchase because they are fees you pay for services such as the appraisal, title search, and lender processing. They usually range from 2% to 5% of the purchase price. Planning for these costs helps you avoid surprises when it’s time to close.

Yes. Investment property loans require an appraisal so the lender can verify the property’s value and potential rental income. This helps confirm the loan amount and the property’s ability to support investment use.

Yes, you’ll usually need an appraisal for a fixed rate mortgage. Most lenders require an appraisal before approving your loan to confirm the home’s value and ensure the property is worth at least the amount you’re borrowing. This protects both you and the lender from overpaying.

Yes. An appraisal is required for a jumbo loan because lenders need a detailed appraisal to confirm the property’s value. Since jumbo loans involve larger amounts, the appraisal is often more thorough.

A mortgage calculator typically estimates your monthly payment using the loan amount, interest rate, and loan term. Some mortgage calculators also include property taxes, homeowners insurance, and mortgage insurance to give a fuller picture of your costs.

For a USDA loan, lenders typically request pay stubs, W-2s, tax returns, bank statements, and proof of residency. Self-employed borrowers may need to provide additional records.

A Home Equity Line of Credit (HELOC) is a revolving second mortgage that lets you borrow against your home equity. You typically have a 10-year draw period to take funds as needed, paying interest only on what you use, followed by a 10-20 year repayment period. Rates are usually variable. HELOCs preserve your first-mortgage rate.

Minimum credit scores vary by loan program. FHA accepts scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no FHA-mandated minimum, though most lenders require 580-620. Conventional loans typically require 620 or higher. USDA generally requires 640. City First evaluates the full borrower profile, not just the score.

Yes, you can buy a home even if your credit is not perfect. There are programs that help borrowers with lower credit scores—FHA and VA loans may have more flexible requirements, and improving your credit before applying can open up more options.

Down payment requirements vary by loan type. VA and USDA loans offer 0% down for eligible borrowers. FHA requires 3.5% with a 580+ credit score. Conventional loans start at 3% down through HomeReady or Home Possible. Jumbo loans typically require 10% or more. Gift funds from family are allowed on most programs.

Most lenders require at least 15% to 20% equity in your home to qualify for a cash-out refinance. The exact amount you need depends on the loan program and your credit profile. Your lender will review your home’s value and your current mortgage balance to determine how much cash you can access.

Many refinances require a new appraisal to confirm your home’s current value. This helps the lender determine how much you can borrow and whether you have enough equity. However, in some cases, certain refinance programs may allow an appraisal waiver.

Considering refinancing your mortgage can help you lower your monthly payment, reduce your interest rate, or switch from an adjustable-rate loan to a fixed-rate loan. Some homeowners also refinance to shorten their loan term or to take cash out for home improvements, debt consolidation, or other needs.

The purchase process starts with a pre-approval so you know how much you can borrow. After you find a home, you make an offer and apply for the mortgage. Then the lender reviews your finances, orders an appraisal, and works with you through closing.

A renovation loan is a single loan that lets you finance both the purchase of a home and the cost of repairs or upgrades. This can be helpful if you’re buying a fixer-upper.

A construction loan process can take 45 to 60 days or more. During this time, your lender reviews your financials, construction plans, and permits before approving the loan. The timeline may also depend on your builder’s readiness.

To apply, most borrowers need recent pay stubs, W-2s or tax returns, bank statements, and a form of identification. Having these documents ready helps keep the process smooth and can help avoid delays. If you are self-employed, you may need to provide extra proof of income.

For a VA loan, you’ll need income and asset verification and your Certificate of Eligibility from the VA. You’ll also need standard documents such as tax returns, pay stubs, and bank statements.

Yes. Many loan programs allow you to use gift funds from a family member to cover part or all of your down payment. Your lender may require a signed gift letter confirming the money is not a loan. This can make buying a home more affordable for first-time buyers.

The documents needed for an ARM are the same as for other loan types: proof of income, bank statements, tax returns, and ID. If you are self-employed, you may need extra paperwork to show consistent income.

A USDA loan may take slightly longer than other loan programs to close—often 40 to 50 days—because it requires approval from both the lender and the USDA.

The FHA loan process generally takes 30 to 45 days to close. The timeline can vary based on how quickly documents are submitted and whether the property meets FHA appraisal standards.

To qualify for a HELOC, borrowers generally need enough equity in their home, good credit, and steady income. Lenders usually require that you keep at least 15% to 20% equity in the property after borrowing.

Most City First Mortgage loans close in 21 to 30 days from a complete application. Purchase loans average 25-30 days to align with contract timelines. Refinances typically close in 21-25 days. Streamline programs like VA IRRRL or FHA Streamline can close faster with reduced documentation.

For a fixed rate mortgage, typical documents include pay stubs, W-2s or tax returns, bank statements, and a form of identification. If you’re self-employed, you may also need business tax returns and profit-and-loss statements. Having these documents ready can help the process move faster.

After you’re pre-approved, you apply for the ARM once you select a home. The lender then reviews your documents, orders an appraisal, and prepares everything for closing. During this process, you’ll also learn when and how your rate can adjust in the future.

An investment property loan is a mortgage used to finance a home you plan to rent out or use to generate income. These loans often require higher down payments and stronger financial qualifications.

In the calculator, even a small change in interest rates can make a big difference in your monthly payment. Use the calculator to test different interest rate scenarios so you can see how rate changes could impact your budget.

For a renovation loan, you’ll need the standard income and asset documents, plus estimates or bids from licensed contractors. Lenders also require detailed renovation plans to approve the financing.

For an FHA loan, you’ll need to provide pay stubs, W-2s or tax returns, bank statements, and identification. If you’re self-employed, you may also need to provide business financial records.

A reverse mortgage is a loan that allows homeowners age 62 or older to convert part of their home equity into cash. Instead of making monthly payments, the loan is repaid when the home is sold or the borrower no longer lives there.

To qualify for a VA loan, eligibility is based on military service, veteran status, or being a surviving spouse. You must have a Certificate of Eligibility (COE) and also meet standard income and credit qualifications.

VA loans usually close in about 30 to 45 days. The timeline can depend on how quickly the Certificate of Eligibility (COE) is obtained, how responsive the buyer is with providing documents, and the appraisal results.

The approval process is generally similar no matter which type of refinance loan you choose, but the requirements may vary. A rate-and-term refinance usually focuses on your credit, income, and property value, while a cash-out refinance also looks at how much equity you have. Government-backed programs like FHA or VA may also have their own guidelines.

Closing a conventional loan usually takes 30 to 45 days. The timeline depends on how quickly you provide documents, the appraisal process, and how busy the lender is.

For a conventional loan, you will need income documents such as pay stubs, tax returns, and bank statements. You will also need identification and proof of employment. If you make a larger down payment, you may need to provide proof of asset funds.

Yes, eligible veterans, active-duty service members, and surviving spouses can use VA loans with 0% down. USDA loans offer 0% down for eligible rural and suburban properties with income limits. Some down payment assistance programs combined with FHA can also bring out-of-pocket costs near zero.

Refinancing can affect your credit score because applying for a refinance involves a credit check, which may cause a small and temporary dip in your score. Over time, if refinancing lowers your payment or helps you manage debt, it may improve your overall credit health.

To qualify for a USDA loan, borrowers must meet income limits for their area, have steady employment, and plan to live in the home as their primary residence. The property must also be located in an eligible USDA zone.

For a second home loan, lenders typically require the standard income, asset, and credit documents, along with proof of your primary residence. They may also review your reserves to make sure you can handle two mortgages.

You’re typically approved for a mortgage after you submit your application and provide your income, credit, and asset information. Many lenders can give you an answer within a few days, though it may take longer if extra documents or an appraisal are needed.

Even if you get an appraisal, you may still want a home inspection. An appraisal estimates the home’s value for the lender, while an inspection evaluates the home’s condition for your benefit. Both are important: the inspection helps you understand repairs or issues before you buy, and the appraisal helps secure the loan.

Tapping into your equity can change your monthly payment. A cash-out refinance creates a new mortgage, so your monthly payment may go up or down depending on your loan amount and interest rate. With a HELOC, your payment will vary based on how much you borrow and the current interest rate.

On a Conventional loan, yes — PMI is required below 20% equity but cancels at 78% LTV automatically. FHA loans require MIP for the life of most loans regardless of equity. VA and USDA loans do not require monthly mortgage insurance. Lender-paid MI options can also eliminate the monthly PMI line item with a slightly higher rate.

Applying for a mortgage requires a hard credit inquiry, which may cause a small and temporary dip in your credit score. The impact is usually minor, and if you apply with multiple lenders in a short time frame, it is often treated as one inquiry.

Investment property loans can take slightly longer to close than primary home loans, often 40 to 60 days, because they require extra review of your financials and rental income.

Pre-qualification is a quick estimate of what you might afford, often based on basic information you provide. Pre-approval is more detailed because the lender reviews your financial documents and credit report. As a result, pre-approval gives you stronger buying power when making an offer.

A home equity line of credit (HELOC) is a revolving line of credit that lets you borrow against your home’s equity as needed. It works like a credit card secured by your home, giving you the flexibility to use funds over time.

How much equity you need to refinance depends on the type of refinance. Conventional refinances often require at least 20% equity to qualify for the best terms, while FHA or VA loans may allow you to refinance with less equity. Your loan officer can review your options based on your current loan and your property value.

Accessing your home’s equity means using the value you’ve built up in your home. Home equity is the difference between what your home is worth and what you owe on your mortgage. By taking out a loan or line of credit, you can turn that equity into cash for home improvements, debt consolidation, or other financial needs.

To be eligible for a reverse mortgage, homeowners must be at least 62 years old, live in the home as their primary residence, and have sufficient equity. Income and credit requirements are generally less strict than with traditional loans.

Earnest money is a deposit you make when you submit an offer on a home to show the seller you are serious. It is usually applied to your closing costs or down payment at closing. If the deal falls through for a valid reason, you may be able to get the earnest money back.

Down payment requirements vary. Depending on the program, you may be able to put as little as 3% down, while other programs may require more based on your credit and financial situation. In general, the larger your down payment, the smaller your loan balance and monthly payment.

The reverse mortgage process usually takes 30 to 45 days, though the timeline can vary depending on the appraisal, required counseling sessions, and completion of all paperwork.

Yes. USDA loans require an appraisal to confirm the home’s value, and the property must also meet USDA safety and livability standards.

An appraisal is a licensed third-party valuation of the home, ordered through an Appraisal Management Company. It confirms the property is worth the contract price and meets program standards. Most loans require an appraisal, though VA IRRRLs, FHA Streamlines, and some Conventional refinances allow appraisal waivers when property values support the loan-to-value.

A conventional loan is different because it is not backed by the government. It usually requires stronger credit and a larger down payment, but it may offer lower long-term costs, which makes it a popular choice for well-qualified buyers.

An adjustable-rate mortgage (ARM) starts with a lower fixed interest rate for an initial period, then adjusts periodically based on market conditions. This can give you lower initial payments, but your payments may increase later. ARMs work well if you plan to move or refinance before the adjustment period.

Yes, most loan programs allow gift funds. FHA, VA, and USDA permit 100% of the down payment from a gift. Conventional loans allow gifts on primary residences. Donors must be family or other approved relationships, and a gift letter is required documenting that no repayment is expected.

Fixed-rate mortgages keep the same interest rate and payment for the entire loan term, typically 15 or 30 years. Adjustable-rate mortgages (ARMs) start with a lower fixed rate for an introductory period (5, 7, or 10 years), then adjust annually based on a market index plus a margin. ARMs work for borrowers planning to move or refinance before the adjustment period.

Yes. Self-employed borrowers typically provide two years of personal and business tax returns, year-to-date profit-and-loss statements, and business bank statements. Bank-statement loan programs allow qualification using 12-24 months of business deposits without tax returns. We also offer P&L-only and asset-depletion programs for high-net-worth self-employed borrowers.

Renovation loan processes often take longer than standard loans—sometimes 45 to 60 days—because they require extra steps to review project plans and contractor bids.

Yes. For an adjustable-rate mortgage (ARM), an appraisal is almost always required to confirm the home’s value. This helps ensure the lender is not lending more than the property is worth, and it’s the same process as with most other loan types.

To qualify for a second home loan, borrowers usually need a higher credit score, stable income, and a larger down payment. Lenders also check that the property will be used as a second home, not a rental.

Closing on a second home loan is similar to closing on a primary home purchase and usually takes 30 to 45 days. Having your documents ready can help speed up the process.

Refinance when one or more conditions apply: market rates are at least 0.5% to 0.75% below your current rate, you want to shorten your term, you need to eliminate PMI, you want to switch from ARM to fixed, or you need cash for renovations or debt consolidation. We provide a break-even analysis with every refinance quote.

Mortgage calculators provide an estimate based on the numbers you enter, so your actual payment may be higher or lower than the calculator estimate depending on local taxes, insurance premiums, and any required mortgage insurance. The most accurate numbers come from your lender after they review your full application.