Frequently Asked Questions (FAQs) | Home Loans & Mortgage Answers

What documents are required to apply for a loan?

You typically need proof of income, tax returns, bank statements, and identification. Specific requirements may vary.

How much can I borrow for a home loan?

The amount you can borrow depends on your income, credit, and property value. Contact us for a personalized quote.

What is the difference between a mortgage broker and a lender?

Mortgage brokers connect borrowers with lenders, while lenders provide the funds directly.

What is the minimum credit score required?

Our minimum credit score requirement varies by loan type, but a score of 620 is generally required.

How can I contact Trust Lending for more information?

You can reach us via phone, email, or through the contact form on our website.

How are interest rates determined?

Rates are influenced by market conditions, loan type, and your credit profile.

How do I calculate my monthly mortgage payments?

We offer calculators to estimate monthly payments based on loan amount, interest rate, and term.

How do I know if I qualify for a loan?

Eligibility depends on your credit score, income, debt-to-income ratio, and other factors. Contact us for a detailed assessment.

How secure is my personal information with Trust Lending?

We use industry-standard encryption and security protocols to protect your data.

What happens if I miss a loan payment?

Missing a payment can incur late fees and impact your credit score. Contact us immediately if you anticipate a missed payment.

How long does the loan approval process take?

Approval times vary, but it typically takes 30-45 days from application to closing.

What areas does Trust Lending serve?

We serve clients in five states: Texas, Oregon, Colorado, California, and Florida, with specific offerings tailored to local markets.

Can I apply for multiple loans at once?

While possible, doing so can impact your credit score and complicate the approval process.

What is the difference between pre-qualification and pre-approval?

Pre-qualification gives you an estimate, while pre-approval involves verifying your financial details for a specific loan amount.

What services does Trust Lending offer?

Trust Lending specializes in home purchases, refinancing, and real estate investment financing.

Can I get pre-approved for a loan?

Yes, pre-approval helps you understand your budget and makes you a more competitive buyer.

What should I avoid during the loan application process?

Avoid major financial changes like opening new credit accounts or making large purchases during the process.

Can I make extra payments to pay off my loan faster?

Yes, making extra payments can reduce your loan term and save on interest. Check your loan terms for prepayment policies.

Do I need an appointment to apply for a loan?

No, but scheduling an appointment can help ensure personalized assistance.

What is private mortgage insurance (PMI), and do I need it?

PMI protects lenders if you default on a loan. It is typically required if your down payment is less than 20%.

How do I lock in my interest rate?

You can lock in your rate during the application process to protect against rate increases.

What happens during the underwriting process?

Underwriting involves reviewing your financial history to assess risk and loan eligibility.

Do you offer loans for first-time homebuyers?

Yes, we offer special programs designed for first-time homebuyers.

What is included in closing costs?

Closing costs include appraisal fees, title insurance, taxes, and lender fees.

What are the tax benefits of owning a home?

Homeownership can provide tax deductions for mortgage interest and property taxes.

What is an escrow account, and how does it work?

An escrow account holds funds for property taxes and insurance, ensuring timely payments.

What is the process for purchasing a home with Trust Lending?

Our home purchasing process starts with pre-approval, selecting a property, loan application, and ends with closing. We guide you through each step.

Can I buy a home with no down payment?

Certain loan programs, like VA loans, allow for no down payment.

Do I need a down payment to purchase a home?

Down payment requirements vary by loan type. Some programs allow as little as 3% down.

What is the first step to purchasing a home?

Start with a pre-approval to determine your budget and strengthen your buying power.

How long does the home-buying process take?

It typically takes 30-60 days from pre-approval to closing.

What should I know about closing costs?

Closing costs include appraisal, title insurance, and other fees. They typically range from 2-5% of the loan amount.

What types of loans does Trust Lending offer?

We offer fixed-rate, adjustable-rate, FHA, VA, jumbo, HECM (Reverse Mortgage) and investment property loans.

Can I use rental income to qualify for a mortgage?

Yes, rental income from investment properties can be considered as part of your income.

Can I purchase a second home with a loan from Trust Lending?

Yes, we provide financing options for second homes. Contact us for terms and conditions.

How does property location affect loan approval?

Certain areas may qualify for special loan programs or have different appraisal considerations.

Do you offer loans for low-income buyers?

Yes, we provide options such as FHA loans and state assistance programs.

What is the minimum credit score for home loans?

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Can I apply for a loan if I am self-employed?

Yes, we offer loans tailored to self-employed individuals. Additional documentation may be required.

What is a VA loan?

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What is a jumbo loan?

Jumbo loans exceed conventional loan limits and are designed for high-value properties.

What happens if my home value decreases after taking a loan?

While it doesn’t affect your loan terms, it may impact your ability to refinance or sell.

What is the difference between fixed and variable interest rates?

Fixed rates remain the same over the loan term, while variable rates can change based on market conditions.

Does Trust Lending offer VA or FHA loans?

Yes, we offer VA and FHA loans for eligible borrowers.

Can I get a loan with a co-signer?

Yes, having a co-signer can improve your loan eligibility if they have good credit and sufficient income.

Do you offer adjustable-rate mortgages (ARMs)?

Yes, we offer adjustable-rate mortgages with initial fixed-rate periods.

What is an FHA loan?

FHA loans are government-backed loans designed for low-to-moderate-income borrowers.

How do I know if refinancing is right for me?

If current interest rates are lower than your existing rate or if you need to adjust your loan term, refinancing may be beneficial.

What are the benefits of refinancing?

Refinancing can lower your interest rate, reduce monthly payments, or allow you to access home equity

Can I refinance if I have bad credit?

Options may be available, but terms and rates will depend on your financial situation.

How long does refinancing take?

The refinancing process typically takes 30-45 days.

What is a cash-out refinance?

A cash-out refinance allows you to access home equity by refinancing for more than you owe.

Can I refinance an investment property?

Yes, we offer refinancing options for investment properties. Contact us for details.

Are there any fees for refinancing?

Yes, fees may include application, appraisal, and closing costs. We'll provide a detailed estimate.

What is the difference between a second mortgage and a cash-out refinance?

A second mortgage adds a separate loan on top of your existing one, while a cash-out refinance replaces your original mortgage.

What are the benefits of refinancing my mortgage?

Refinancing can lower your interest rate, reduce monthly payments, or help you access home equity for other financial needs.

Can I refinance to consolidate debt?

Yes, cash-out refinancing allows you to use home equity to pay off higher-interest debt.

Can I refinance an investment property?

Yes, we offer refinancing options for investment properties. Contact us for details.

Can I invest in real estate with a limited budget?

Yes, we offer tailored investment solutions even for those with limited budgets.

Does Trust Lending provide loans for investment properties?

Yes, we offer specialized loans for single-family, multi-family properties.

What are the risks of investing in real estate?

Risks include market fluctuations, property maintenance costs, and potential vacancies.

What is the minimum down payment for an investment property?

Typically, investment property loans require a 15-25% down payment.

How does Trust Lending assist with real estate investments?

We provide market analysis, loan options, and expert advice to support your real estate investments.

Does Trust Lending offer guidance for first-time investors?

Yes, we provide expert advice and tailored loan solutions to help you start your investment journey.

Are there alternatives to a reverse mortgage?

Yes, other options include downsizing, refinancing into a traditional mortgage or home equity loan, getting a home equity line of credit (HELOC), or seeking financial assistance programs.

Will a reverse mortgage affect my Social Security or Medicare benefits?

No, a reverse mortgage does not affect Social Security or Medicare benefits.

Who qualifies for a reverse mortgage?

Homeowners who are at least 62 years old, own their home (or have significant equity), and live in the home as their primary residence.

What happens when I pass away?

When you pass away, your heirs will need to sell the home to repay the loan, or they can use other funds to pay off the loan. If the home sells for less than the loan balance, the remaining debt is forgiven.

Can I move if I have a HECM?

Yes, you can move. If you move out of your home, the HECM loan becomes due. You would need to sell the home to pay off the loan.

What is a reverse mortgage?

A reverse mortgage is a loan available to homeowners aged 62 or older that allows them to convert part of their home’s equity into cash without having to sell their home or make monthly mortgage payments.

What types of reverse mortgages are available?

The most common type is a Home Equity Conversion Mortgage (HECM), which is federally insured. There are also proprietary (private lender) reverse mortgages and single-purpose reverse mortgages offered by some state and local governments.

Will I owe more than my home is worth with a HECM?

No, HECMs are “non-recourse” loans. This means you will never owe more than the home’s value when it is sold, even if the loan balance exceeds that amount.

How long does the reverse mortgage application process take?

The process typically takes 30 to 60 days, depending on factors such as appraisals, paperwork, and required counseling.

How does a reverse mortgage compare to a traditional home equity loan or HELOC?

A home equity loan or HELOC requires monthly payments, whereas a reverse mortgage does not. However, reverse mortgages typically have higher fees and interest rates.

Is the money I receive from a HECM taxable?

No, the funds from a HECM are not taxable because they are considered a loan, not income.

Do I have to make payments with a reverse mortgage (HECM)?

No, you don’t need to make monthly payments. The loan balance increases over time as interest and fees accumulate, but the loan is paid back when the home is sold or you no longer live in it.

What happens if I want to move out of my home?

If you move out permanently (such as into assisted living), the loan becomes due and must be repaid, usually by selling the home.

Can I refinance a reverse mortgage?

Yes, you can refinance a reverse mortgage if your home’s value has increased or if better loan terms become available.

Are there prepayment penalties if I want to pay off the reverse mortgage early?

No, reverse mortgages do not have prepayment penalties, so you can pay off the loan balance at any time.

What happens if I outlive my reverse mortgage funds?

If you receive monthly payments or a line of credit, your loan remains in place, but if you’ve exhausted all funds, you will need to find other financial resources for expenses.

Can my heirs inherit my home if I have a reverse mortgage?

Yes, your heirs can inherit the home, but they must either repay the loan balance or sell the home to pay off the debt. If the loan balance is higher than the home’s value, they are only responsible for repaying up to the home's appraised value.

Are there any restrictions on how I use the money from a reverse mortgage?

No, you can use the funds for any purpose, such as covering living expenses, home repairs, medical bills, or travel. However, single-purpose reverse mortgages may have spending restrictions.

What are the costs associated with a reverse mortgage?

Costs may include origination fees, closing costs, mortgage insurance, and interest, which are typically added to the loan balance.

How does a reverse mortgage work?

Instead of the homeowner making payments to the lender, the lender makes payments to the homeowner based on the home’s equity. The loan is repaid when the homeowner moves out, sells the home, or passes away.

How is the amount I can borrow determined?

The loan amount depends on factors like your age, home value, interest rates, and the type of reverse mortgage you choose. Generally, older homeowners with more home equity qualify for higher loan amounts.

What happens if my spouse is younger than 62?

If your spouse is not listed as a borrower, they may not be able to stay in the home after you pass away or move out unless they meet specific eligibility requirements as a "non-borrowing spouse."

Can I get a reverse mortgage if I still owe money on my current mortgage?

Yes, but you must use the reverse mortgage proceeds to pay off any existing mortgage balance first.

Can I be forced out of my home with a reverse mortgage?

As long as you meet the loan requirements—such as living in the home, paying property taxes, and maintaining the home—you cannot be forced to leave.

What are the costs associated with a HECM?

HECMs come with several costs, including origination fees, closing costs, and insurance premiums. These costs can be added to the loan balance.

What are the main risks of a reverse mortgage?

Risks include the increasing loan balance, the potential for foreclosure if taxes and insurance are not paid, and reducing home equity that could impact heirs’ inheritance.

Can I get a reverse mortgage on a second home or rental property?

No, reverse mortgages are only available for your primary residence.

When does a reverse mortgage need to be repaid?

The loan must be repaid when the homeowner moves out, sells the home, or passes away. The home is typically sold to repay the loan, but heirs may choose to pay off the loan and keep the home.

Is counseling required before getting a reverse mortgage?

Yes, HUD requires all HECM applicants to complete a counseling session with an approved housing counselor to ensure they understand the loan’s terms and alternatives.

Can I lose my home with a reverse mortgage?

Yes, if you fail to meet the loan obligations, such as paying property taxes, homeowners insurance, and maintaining the home, the lender can foreclose on the property.

Does a reverse mortgage affect my estate planning?

Yes, since the loan balance grows over time, there may be less home equity left for your heirs. It’s important to discuss estate planning with a financial advisor.

How does interest work on a reverse mortgage?

Interest accrues over time and is added to the loan balance. You do not make monthly payments, so the loan balance grows as interest compounds.

Do I still need to pay property taxes and homeowners insurance?

Yes, you are responsible for keeping up with property taxes, homeowners insurance, and maintenance. Failing to do so can lead to foreclosure.

What is a Home Equity Conversion Mortgage (HECM)?

A HECM is a type of reverse mortgage insured by the federal government. It allows homeowners aged 62+ to convert part of their home equity into loan proceeds without having to make monthly payments.

What happens if the loan balance exceeds the home’s value?

Reverse mortgages are non-recourse loans, meaning the homeowner or heirs will never owe more than the home’s value when it is sold.

How do you receive the money from a reverse mortgage?

Homeowners can choose to receive the funds as a lump sum, monthly payments, a line of credit, or a combination of these options.

What is the difference between a HECM and other reverse mortgages?

HECMs are federally insured, meaning the government guarantees the loan, protecting both the homeowner and the lender. They also have specific rules and guidelines, making them the most common type of reverse mortgage.

How does a reverse mortgage (HECM) work?

With a HECM, you can receive funds in different ways: as a lump sum, monthly payments, or a line of credit. You don’t make monthly payments. The loan is repaid when the home is sold, you move out, or you pass away.

How much can I borrow with a reverse mortgage (HECM)?

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Can I lose my home with a HECM?

You can lose your home if you don’t meet the terms of the loan, such as maintaining the property, paying property taxes, and keeping homeowner’s insurance. The loan may also become due if you move out or pass away.

What are the main advantages and disadvantages of a reverse mortgage?

Advantages: No monthly payments, flexible payout options, allows seniors to stay in their home. Disadvantages: Loan balance grows over time, fees can be high, and it reduces home equity for heirs.

Is a reverse mortgage a good option for me?

It depends on your financial needs, long-term plans, and whether you have other sources of income or assets. It’s best to consult with a financial advisor before making a decision.

Can I make payments on a reverse mortgage?

Yes, you can choose to make voluntary payments to reduce the loan balance, but no monthly payments are required.

Do I still own my home with a reverse mortgage?

Yes, the homeowner retains ownership of the home, but the loan balance increases over time as interest and fees are added.

What happens if my home’s value decreases over time?

Since reverse mortgages are non-recourse loans, you or your heirs will never owe more than the home’s value when it is sold. The FHA insurance covers any shortfall.

Can I use a reverse mortgage to buy a new home?

Yes, through a HECM for Purchase, which allows you to use reverse mortgage funds to buy a new primary residence.

Can I refinance a HECM?

Yes, you can refinance your HECM if interest rates drop or you want to change your loan terms. Refinancing may involve new fees.

Are the proceeds from a reverse mortgage taxable?

No, the money you receive from a reverse mortgage is considered loan proceeds, not income, so it is not subject to income tax.

Can I get out of a reverse mortgage once I take it?

You have a three-day right of rescission (cancellation) after closing. After that, repaying the loan would require selling the home or using other funds to pay off the balance.

Who qualifies for a reverse mortgage (HECM)?

To qualify for a HECM, you must be 62 years or older, own your home, live in it as your primary residence, and have enough home equity. The lender will also look at your income, credit, and ability to maintain the home.

Can I add a family member to my reverse mortgage later?

No, only borrowers listed on the original loan can remain on the reverse mortgage. If a spouse is not included, they may face difficulties remaining in the home after the borrower passes.

What happens if I pass away with a reverse mortgage?

Your heirs will have the option to repay the loan and keep the home, sell the home to pay off the loan, or allow the lender to take ownership if the loan balance exceeds the home’s value.

Do you provide loans for commercial properties?

Unfortunately no, we do not offer loans for commercial properties.

Can I use a commercial loan for a mixed-use property?

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How do I qualify for a commercial loan?

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What is the loan process for commercial real estate?

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How much down payment is required for a commercial loan?

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What is the typical term length for a commercial loan?

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