What factors impact my rate?
More than most people realize. Here’s what actually moves it:
- Credit Score — higher is always better. The gap between a 680 and a 760 can move your rate by half a percent or more.
- Down Payment (LTV) — the more you put down, the less risk to the lender, the better your rate.
- Property Type — single-family homes get the most favorable pricing. Condos and multi-unit properties carry pricing adjustments.
- Occupancy — primary residence beats second home and investment property.
- Loan Size — very small loans and jumbos are both priced differently than standard conforming loans.
- Loan Type & Term — a 15-year fixed is lower than a 30-year; ARMs start lower but carry future risk.
I walk through all of these before we touch an application so there are no surprises.
How do lenders calculate income?
It depends on how you earn it. W-2 employees are straightforward — lenders use your gross monthly income from pay stubs and tax returns. Self-employed borrowers are more complex: lenders typically average the last two years of net income, which often looks lower than what you actually take home. Commission, bonus, and rental income all have their own rules. I walk through your specific income profile before we go anywhere near an application.
How much can I afford?
More than a bank calculator will tell you, and sometimes less than you think. Lenders use your debt-to-income ratio (DTI) — your total monthly debts divided by gross monthly income. Most conventional loans cap DTI around 45–50%. But affordability isn’t just what you qualify for. It’s what you’re comfortable with after taxes, insurance, HOA, and life. I run both numbers so you know the ceiling and the comfortable zone — and you choose.
How does my credit score impact my rate?
Significantly. The difference between a 680 and a 740 can be 0.25%–0.75% in rate — which adds up to tens of thousands over the life of a loan. Below 620, many conventional programs aren’t available at all. There are smart, legal ways to improve your score quickly before applying. I review your credit profile early so we can time your application strategically if it makes sense to wait.
How much should I put down?
More isn’t always better — and that surprises a lot of buyers. Putting 20% down avoids PMI, but tying up that cash means less liquidity for repairs, investments, or emergencies. In some cases, putting 5–10% down and keeping reserves makes more financial sense. I run a break-even analysis so you can see the actual cost difference — not just hear that “20% is best.” The right down payment depends on your situation, not a rule of thumb.
Why is a mortgage broker different from going to a bank?
A bank can only offer their own products and interest rates — their loan officers work for the institution. As an independent broker, I work for you. I shop your loan across multiple wholesale lenders to find the strongest rate and program for your specific situation. More options, more competition, and someone whose job is to get your closing done right.
