Direct answers to mortgage questions borrowers and Realtors ask most.
These answers are educational starting points. Sarah Baraz reviews the complete borrower and property scenario before recommending a financing route.
What does a mortgage preapproval actually tell you?
A useful preapproval should explain the qualifying income used, debts counted, estimated housing payment, expected cash to close, program assumptions and any known risks or conditions. A letter by itself is not the same thing as understanding the file.
Can a self-employed borrower qualify for a mortgage?
Yes. The important issue is how income is documented and calculated. A borrower may qualify using traditional tax returns, and in eligible scenarios alternative documentation such as bank statements, 1099 income, P&L or asset-based methods may be evaluated.
Can a loan be reviewed after another lender declines it?
Yes. The first step is identifying exactly why it was declined. The cause could be income calculation, credit, property, documentation, program requirements or a lender overlay. A new review may confirm the decline or reveal another legitimate route.
Do I need 20% down?
No. Conventional, FHA, VA and other eligible programs may allow less than 20% down. The better comparison is total monthly payment, cash needed, mortgage insurance when applicable and long-term cost.
What is debt-to-income ratio?
DTI compares qualifying monthly debt obligations with qualifying gross monthly income. Program rules determine which debts and income can be counted. Use the DTI calculator for an educational estimate, then have the actual file reviewed.
Can VA financing be used for new construction?
VA financing may be available for eligible new-construction transactions, including certain one-time-close construction structures. Builder approval, property requirements, veteran eligibility and lender guidelines all matter.
What if my credit is not ready?
A mortgage review can still be useful. Instead of a vague “come back later,” the goal should be to identify which credit issue affects qualification, what changes matter, and what can be ignored.
What if my income looks lower on my tax returns than what my business actually earns?
This is common for business owners. Traditional underwriting follows specific rules for taxable and business income. Depending on the situation, alternative documentation programs may also be considered, but they have their own requirements and tradeoffs.
Should I choose a loan based only on rate?
No. Rate matters, but so do points, lender or seller credits, mortgage insurance, cash to close, how long you expect to keep the loan, and whether the structure actually fits the borrower.
Who does Sarah Baraz work with?
Sarah is a Mortgage Loan Officer with CMG Home Loans, based in San Antonio and licensed in Texas, Florida and California. Her work includes first-time buyers, self-employed borrowers, investors, VA borrowers, new construction, jumbo, physician financing and complex or rescue files.
Educational information only. Programs, guidelines, rates and eligibility can change and are subject to underwriting. This is not a commitment to lend.