Resources · My Mortgage Company
Mortgage FAQ
Answers to the questions we hear most — from first-time buyers and experienced investors alike. If your question is not here, ask Omar directly.
Getting Started
What is the first step to buying a home?
The first step is getting pre-approved for a mortgage before you start shopping. Pre-approval tells you exactly how much you can borrow, what your monthly payment will look like, and signals to sellers that you are a serious, qualified buyer. Without it, you are guessing at your budget — and many sellers will not accept offers from non-pre-approved buyers.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a rough estimate based on self-reported information — no credit pull, no document review. Pre-approval involves a real credit pull, income and asset verification, and a conditional commitment from the lender. In today's market, sellers expect pre-approval, not pre-qualification. Pre-approval typically takes 1–2 business days with the right documentation.
How long does the mortgage process take?
From pre-approval to closing, most purchase loans close in 21–45 days. The timeline depends on how quickly you submit documents, the complexity of your income situation, and the seller's closing timeline. Getting pre-approved before writing an offer puts you ahead of buyers who start the loan process after going under contract.
Loan Programs
Which loan program is best for first-time buyers?
FHA loans are the most popular for first-time buyers because of the low 3.5% down payment and 580+ credit requirement. Conventional loans (3% down) can be better if you have 620+ credit and want to avoid FHA mortgage insurance long-term. VA loans are the best option if you or a spouse served. The right answer depends on your credit, savings, and how long you plan to stay — Omar will run both scenarios for you.
Can I use an FHA loan to buy a multi-family property?
Yes. FHA loans allow purchases of 1–4 unit properties as long as you occupy one unit as your primary residence. This is a popular strategy for first-time buyers looking to offset their mortgage with rental income from the other units.
What is a Non-QM loan?
Non-Qualified Mortgage (Non-QM) loans are mortgages that do not follow standard income documentation requirements set by the CFPB. They are designed for borrowers who do not fit the conventional mold — self-employed, investors, foreign nationals, or those with non-traditional income. Common Non-QM programs include bank statement loans, DSCR loans, hard money, and fix-and-flip. They are legal, widely available, and often the best fit for certain borrower types.
Rates & Payments
Should I get a fixed rate or an adjustable rate?
Fixed rates provide payment certainty for the life of the loan — best if you plan to stay 7+ years. Adjustable rates (ARMs) offer a lower initial rate (typically 5–7 years) and may be better if you plan to move or refinance before the adjustment period. In a high-rate environment, ARMs can make monthly payments more manageable while you wait for rates to fall.
Should I pay points to buy down my interest rate?
Paying discount points makes sense when the monthly savings exceed the cost before you sell or refinance. Divide the upfront cost by the monthly savings to find the breakeven point in months. If you plan to stay longer than the breakeven, points are worth it. If you might move or refinance sooner, it is often better to keep your cash and take the higher rate.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal, expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus fees — origination, mortgage insurance, discount points, etc. — giving you the true annual cost of the loan. Always compare APR when comparing loan offers, not just the interest rate.
Credit & Qualification
What credit score do I need to buy a house?
The minimum varies by loan type: FHA requires 580+ (or 500 with 10% down), VA lenders typically require 580+, USDA recommends 640+, conventional loans require 620+, and jumbo loans typically require 700+. A higher score unlocks better rates. If your score needs work, Omar can help you identify the fastest path to improvement.
Does getting pre-approved hurt my credit score?
The initial pre-approval process involves a soft credit pull, which has zero impact on your score. A hard inquiry only occurs when you formally apply for a loan — typically after going under contract on a home. Under FICO scoring rules, multiple mortgage inquiries within a 45-day window count as just one inquiry, so shopping multiple lenders does not hurt your score.
What is debt-to-income ratio (DTI) and why does it matter?
DTI is your total monthly debt payments divided by your gross monthly income. Lenders use it to assess how much of your income is already committed to debt. FHA allows up to 57% DTI with strong compensating factors. Conventional allows up to 50% in some cases. High DTI does not automatically disqualify you — but it affects how much house you can qualify for.
Down Payment
What is the minimum down payment required?
It depends on the loan: VA and USDA require 0% down for eligible borrowers. FHA requires 3.5% down (580+ credit). Conventional requires 3% for first-time buyers or 5% for repeat buyers. Investment properties typically require 15–25% down. Jumbo loans usually require 10–20% down.
Can my down payment come from a gift?
Yes — with some programs. FHA allows 100% of the down payment to be a gift from a qualifying donor (family, employer, or nonprofit). Conventional allows gift funds but typically requires the borrower to contribute their own funds if the down payment is less than 20%. VA and USDA do not require a down payment, so the gift question does not apply.
Are there down payment assistance programs available in Bakersfield?
Yes. Several programs exist for buyers in Kern County and California broadly — including CalHFA (California Housing Finance Agency) programs that offer down payment assistance as a silent second loan. Income and purchase price limits apply. These programs pair with FHA or conventional first mortgages. Ask Omar about current availability and income limits for your household.
Have a Question We Did Not Answer?
Reach out directly — Omar responds within one business day and never uses high-pressure tactics.
My Mortgage Company, Inc. · CA DRE #02168831 · NMLS #2269164 · Broker: Omar L. Ortiz, NMLS #951384, DRE #02056548. Information provided is for educational purposes only. Loan program availability, requirements, and rates are subject to change. All figures, rates, fee ranges, and examples shown on this page are for informational purposes only and are not a guarantee of rates, fees, loan terms, or qualification. This is not a commitment to lend.