A mortgage is a loan used to purchase real estate, with the property itself serving as collateral. You borrow a set amount from a lender and repay it over a fixed period — typically 15 or 30 years — plus interest. Mortgages come in two main flavors: fixed-rate (your interest rate stays the same for the life of the loan) and adjustable-rate (the rate can change after an initial fixed period). Longer loan terms mean lower monthly payments but more total interest paid over time.

Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the purchase price. It protects the lender — not you — if you default on the loan. PMI typically costs 0.5% to 1.5% of the loan amount annually, added to your monthly payment. The most straightforward way to avoid PMI is to put 20% down. Alternatively, ask your PierPoint Mortgage broker about 80-10-10 financing, where a second mortgage covers part of the gap, or explore loan programs like VA loans that never require PMI.

80-10-10 financing is a strategy that helps borrowers avoid PMI without a full 20% down payment. Here is how it works: an institutional lender provides a traditional 80% first mortgage, you take out a 10% second mortgage, and you make a 10% cash down payment. Because the primary loan is only 80% of the home value, PMI is not required. A similar structure, 80-15-5, allows just a 5% down payment with a 15% second mortgage, though rates and fees on the second loan tend to be higher.

A fixed-rate mortgage locks in the same interest rate for the entire loan term — your monthly principal and interest payment never changes. An adjustable-rate mortgage (ARM) starts with a lower introductory rate for a set period (commonly 5, 7, or 10 years), then adjusts periodically based on a market index. Fixed-rate loans offer stability and predictability, while ARMs can save money in the short term if you plan to sell or refinance before the adjustment period begins. Your PierPoint broker can model both scenarios against your timeline.

Closing is when ownership of the property officially transfers from the seller to you. You will sit down with your real estate agent, the seller’s representatives, attorneys, and a title or escrow officer to sign the final paperwork. Before closing, you should complete a final walk-through of the property to confirm agreed-upon repairs and that everything is in order. At the table, you will sign the loan documents, pay closing costs and any remaining down payment, and receive the keys. The entire process typically takes one to two hours.

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It is designed for borrowers with lower credit scores or limited savings. You can qualify with a credit score as low as 580 with just 3.5% down, or a score between 500 and 579 with 10% down. FHA loans also allow the seller to contribute up to 6% of the sale price toward your closing costs. The trade-off is that FHA loans require two types of mortgage insurance — an upfront premium and an annual premium for the life of the loan.

Mortgage insurance protects the lender from financial loss if you stop making payments on your loan. It is typically required when your down payment is less than 20% of the purchase price. On conventional loans this is called PMI, and on FHA loans it comes in the form of MIP (Mortgage Insurance Premium). The cost is either rolled into your monthly payment or paid as a lump sum at closing. While it adds to your housing expense, mortgage insurance makes homeownership accessible to buyers who have not yet saved a large down payment.

Yes. Home equity is the difference between your property’s current market value and the amount you still owe on the mortgage. Many homeowners tap this equity for expenses like home renovations, college tuition, medical bills, or debt consolidation. With a conventional home equity loan, you can typically borrow up to 85% of your available equity. A home equity line of credit (HELOC) offers more flexible access to funds. Before borrowing, consider whether the purpose justifies taking on additional debt secured by your home.

Credit score requirements vary by loan type. Conventional loans generally require a minimum score of 620. FHA loans accept scores as low as 500, though you will need 10% down for scores between 500 and 579, and only 3.5% down at 580 or above. VA loans have no official minimum score set by the government, though most lenders look for at least 620. Bank statement loans and non-QM products may have different thresholds. The higher your credit score, the better interest rate you will qualify for — which can save thousands over the life of your loan.

A typical mortgage takes 30 to 45 days from application to closing, though timelines can vary. Pre-approval usually takes one to three business days. Once you have an accepted offer and submit your full application, the lender orders an appraisal, verifies your documents, and underwriting begins. Delays most often happen when additional documentation is needed or when the appraisal comes in below the purchase price. Working with an experienced PierPoint broker who prepares your file thoroughly upfront can shorten the timeline significantly.

You will need several categories of documents: proof of income (pay stubs from the last 30 days and W-2s from the last two years), bank statements from the last two to three months showing your savings and down payment funds, government-issued photo ID, and your most recent two years of tax returns. Self-employed borrowers should also prepare profit-and-loss statements and business tax returns. If you receive additional income sources like alimony, Social Security, or VA benefits, have the relevant award letters or court orders ready.

Down payment requirements depend on the loan program. Conventional loans require as little as 3% down for qualified buyers, though 5% to 20% is more common. FHA loans require a minimum of 3.5% with a credit score of 580 or higher. VA loans and USDA loans offer 0% down payment options for eligible borrowers. Putting more money down reduces your monthly payment, may eliminate the need for mortgage insurance, and can help you secure a better interest rate. Your PierPoint broker will help you find the right balance based on your savings and goals.

PierPoint Mortgage offers a full range of residential loan products including Conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, Bank Statement loans for self-employed borrowers, DSCR investor loans, construction loans, reverse mortgages, refinancing options, and non-QM programs. With access to multiple lenders, we shop rates and terms on your behalf to find the best fit for your financial situation. Whether you are a first-time buyer, a veteran, a real estate investor, or looking to refinance, we have a program that works.

PierPoint Mortgage does not charge upfront application fees. As a mortgage broker, we work on your behalf to connect you with the right lender and loan program. Our compensation is typically built into the loan terms at closing. During the process you may encounter third-party costs such as the home appraisal and credit report fees, which are standard across all lenders. We provide a detailed Loan Estimate early in the process so you know exactly what to expect before you commit to anything.

Absolutely — and we strongly recommend it. A pre-approval letter shows sellers and real estate agents that you are a serious, qualified buyer with financing already in progress. It also gives you a clear picture of how much house you can afford, which saves time during your search. The pre-approval process at PierPoint involves a credit check, income verification, and a review of your financial documents. Most pre-approvals are completed within one to three business days and remain valid for 60 to 90 days.