Mortgage FAQs

A higher credit score generally leads to a lower interest rate. A score of 620+ is the minimum for most conventional loans, while 740+ is considered excellent. Y&L Mortgage looks at your whole financial picture. If your score isn't where you want it to be, we can help you create a plan to improve it or guide you toward flexible loan programs that fit your current situation.

No, this is a common myth. While a 20% down payment helps you avoid private mortgage insurance (PMI) on a conventional loan, many programs allow for much lower down payments. For example, FHA loans require as little as 3.5% down, and VA and USDA loans can offer 100% financing.(Note: Down payment varies by eligibility of buyers) . Y&L Mortgage specializes in low-down payment and down payment , including those offered by New Hampshire Housing, to help you find the option that requires the least amount of cash to close.

Pre-qualification is a quick estimate based on self-reported information, while pre-approval is a more rigorous process where a lender verifies your financial information and provides a conditional loan commitment. In today's competitive market, a pre-approval letter gives you a powerful advantage. Y&L Mortgage guides you through the pre-approval process step by step, ensuring you have all the necessary documentation ready to make a strong offer on a home as soon as you find it.

From pre-approval to closing, the process typically takes around 30-45 days. This can vary based on how quickly you provide documentation and the complexity of your loan. Y&L Mortgage keeps you informed every step of the way with clear communication and a streamlined process, working proactively to get your loan to the closing table on schedule.

To verify your financial information, you'll need proof of income (pay stubs or tax returns), proof of assets (bank statements), identification (driver's license and Social Security card), and proof of residency. Y&L Mortgage provides you with a comprehensive checklist of all the documents you'll need at the beginning, making it easy to stay organized and submit everything in one go.

Closing costs are fees you pay at the end of the loan process, typically ranging from 2% to 5% of the home's purchase price. They cover things like appraisal fees, title insurance, and lender fees. Y&L Mortgage provides a transparent breakdown of all your estimated closing costs in a Loan Estimate document and walks you through every line item so you understand exactly what you are paying for, with no hidden surprises.

PMI is an insurance policy that protects the lender and is typically required on a conventional loan if the down payment is less than 20%. It's an extra monthly fee, but it can be canceled once you've built up 20% equity in your home. Y&L Mortgage will help you understand if PMI is necessary for your loan and, if so, we can explore different options for how it's paid. We can also help you understand how to get rid of PMI once you have enough equity.

It is common for a mortgage to be sold to a servicer after closing, and this does not affect your loan terms, interest rate, or monthly payment. The only thing that changes is the company you send your payments to. Y&L Mortgage will always be your partner and resource, even after your loan closes. We will notify you if your loan is sold and provide all the information you need to make a smooth transition. You can always contact us with any questions about your loan.

As a local lender focused on the communities of New Jersey, Pennsylvania, and New Hampshire, we provide a level of personal service and local expertise that national banks can't match. We are not just an online application; we are a team of people who understand the local market and are dedicated to guiding you with a personal touch from your first question to the day you get your keys.