Start Your Home Financing Journey with Confidence
Are you thinking about buying a home or refinancing, but not sure where to begin?
You're not alone. Mortgage questions can feel overwhelming, especially if you're worried about missing a better deal or making the wrong move. At The Pessemier Mortgage Team, we believe in giving clear and informed answers drawn from decades of experience in the mortgage industry. These answers below will help you to make better decisions on your journey. Here are the questions homebuyers and homeowners ask most - and a few you might not have thought to ask yet.
What does a mortgage broker do, and how is that different from a bank or credit union?
A mortgage broker acts as your personal guide in the loan market. Instead of offering only their own loan limited products like a bank or credit union, brokers connect you with options from a wide range of lenders. Most brokers are approved with 5-10 lenders, which is a great place to start. Our brokerage is approved with nearly 200 investors, and we offer volume discounted pricing to our clients as well. This means we can compare rates, terms, and features from hundreds of lenders with one application. We help you sort through the details, explain your choices in plain language, and advocate for you from start to finish.
How do I know if I qualify for a mortgage?
Lenders look at a mix of factors to decide if you qualify (and how much you qualify for), including your credit scores, income, debts, assets, and the amount you plan to put down. We'll help you understand your options before you apply and suggest steps to strengthen your application if needed. Every situation is different, so a quick call can give you a realistic picture tailored to your goals.
What documents do I need to apply for a mortgage?
Most lenders will want to see most recent 30 days of pay stubs, 2 years of W-2s and/or tax returns, 2 months of bank statements, and details about your debts that would appear on your credit report (like balances and minimum payments for credit cards, car loans, or student loans). If you're self-employed or have non-traditional income, the list might be a bit longer. We'll provide a simple and customized checklist so you know exactly what to gather, and we're here by phone, text, or email to answer questions as you go.
How are mortgage interest rates set, and what affects the rate I'm offered?
Rates can change as often as hourly, based on broader financial markets (such as MBS [mortgage backed securities], as traded on Wall St); so rate lock timing has a lot to do with your pricing. But your specific rate also depends on your credit profile, loan amount, down payment, property type, and the loan program you choose. We have access to real time MBS fluctuations, which help us advise our clients on better times to lock. We also shop across our network of lenders to find you competitive options and explain the factors that matter most for your scenario. We'll also show you how points, fees, and rate locks work so you can make an informed choice. We love to share the break-even calculation when looking at higher or lower fee structures.The math is pretty simple. For however much more in fee you'll be paying for a lower rate/payment, you should save enough in your payment monthly to recoup those added fees in a reasonable amount of time. Each borrower's situation/plans are different, but I don't usually recommend paying more in fees than what you'll recoup through monthly payment savings in more than 36 months.
What types of home loans are available? How do I know which is best for me?
Common loan programs include conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, DPA (down payment assistance) programs, NonQM (non qualified mortgages) for those with unique needs, Construction and Renovation loans, Bridge Loans, and HELOCs (home equity lines of credit). Each program has different rules for credit, income, down payment, and property type. We walk you through the options and help you weigh the pros and cons, always focusing on what fits your long-term plans and financial comfort zone.
Do I have to make a 20% down payment to buy a home?
*A lower down payment can increase your monthly costs or require PMI (private mortgage insurance), but it also makes homeownership more accessible for many buyers. And mortgage insurance doesn't always have to last forever. We'll break down the trade-offs so you can decide what works best for your situation.
How does the pre-approval process work, and why is it important?
Getting pre-approved means a lender has reviewed your financial information and determined how much you can borrow. This gives you a realistic budget, shows sellers you're serious, and helps prevent surprises later. We guide you through the pre-approval process step by step, answer your questions, and prepare you for what comes next.
What can I do to improve my chances of getting approved or securing a better rate?
You can strengthen your application by paying down debts ahead of time, checking your credit for errors, avoiding large purchases before closing, and saving for a higher down payment if possible. We can review your current profile ahead of time, and suggest practical steps based on what lenders are looking for right now.
What are closing costs, and how much should I budget for them?
Closing costs and prepaids usually run between 2% - 5% of your purchase price and cover things like lender fees and discount points (if applicable), appraisal, title insurance, taxes, insurance. If you prefer to pay your own taxes and insurance outside of your mortgage, we have options that will accommodate that for you. We'll also give you a detailed estimate early on, and are happy to walk through each item, and help you compare costs across different lenders.
What does it mean to "shop for a mortgage," and why does working with a broker make a difference?
Shopping for a mortgage means comparing offers on rates, fees, and loan features - not just picking the first quote you see, and not just comparing rates. Fees are often omitted by lenders when buyers only ask about rate.This can be misleading; so you always want to ask for rate and fee together. Because we work with hundreds of lenders, we can cast a much wider net than a single bank or credit union. If you've already obtained a quote from another lender, provide that to us. We will help you with the comparison work, break down each offer in plain terms, and help you spot any fine print or hidden costs.
Will applying for a mortgage hurt my credit score?
A single mortgage application may cause a small, temporary dip in your score. However, when you shop for a mortgage and multiple lenders check your credit within a focused window (usually 45 days), it typically counts as just one inquiry. We'll help you time and organize your application process to minimize the credit impact.
Who pays for credit reports and how much do they cost?
Borrowers pay for credit reports by credit card upfront at the time of application. Why?
How much do credit reports cost?
As of February 2026, many credit companies are currently charging upwards of $250 for a joint tri-merge credit report. We’ve negotiated a reduced rate of $126 for our clients - and it’s paid directly when you run the report through our vendor’s secure system. NOTE: If you are co-applying with your spouse or someone else, you can run a joint credit report to save the added cost of ordering a completely separate report for the other borrower..
What are some common myths or misconceptions about mortgages?
Many people believe you need excellent credit or a huge down payment to buy a home. Others worry that brokers add extra fees or that the lowest rate is always the best deal. The truth is, lenders have many programs for different situations, and brokers like us can help you access better terms with less hassle, and often lower fees as well. Also, there have been two recent studies that show Americans saved nearly $10,000 over the life of the loan by getting their mortgage through a broker. We're happy to clear up any confusion so you can move forward with confidence.
What should I expect at each stage, from application through closing?
After pre-approval, you'll shop for your home, make and negotiate an offer, and finalize your loan details. If you need help from the seller to pay some or all of your closing costs, we'll also coordinate with your Realtor to make sure your offer fits your goals and needs. Once your offer is accepted, we'll guide you through the formal application, appraisal, and underwriting steps. You'll review final documents, sign at closing, and then receive your keys (or finalize your refinance). We stay with you at every step and make sure you always know what comes next.
How do I get started or find out what options make sense for me?
The best way to start is with a call or text to 804-806-3465. We'll listen to your goals, answer your questions, and help you map out a clear next step. There's no pressure or obligation - just straightforward advice from a mortgage broker team that puts your interests first.
Start your home financing journey with clarity. Schedule a call with The Pessemier Mortgage Team today and let's make your goals happen, together: 15-min meeting via Phone or Zoom with Tom Pessemier – Tom Pessemier, Mortgage Broker.
