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Learn before you borrow

Mortgage education

Straight answers to the questions buyers actually ask before they get a mortgage: how much house you can afford, what credit score and down payment you need, how PMI, points, APR and escrow work, how underwriting and appraisals decide your file, and what happens between contract and keys.

The lender does not approve a price. It approves a payment.

Almost every mortgage question comes back to that. Your income, your debts and the full payment on the house, taxes, insurance and HOA included, decide what you can borrow. Start with How Much House Can I Afford and Debt-to-Income Ratio Explained.

Most delays are avoidable.

Files slip on missing pages, unexplained deposits, a new car loan in week three, and conditions answered late. The process section below walks through underwriting, conditions, the appraisal and the three-day Closing Disclosure rule so none of that surprises you.

Written by the person who closes the loans.

Ricky Khamis, President of EPiQ Lending, NMLS #173141, lending in Arizona since 1999. Guidelines change and every file is different, so treat these as orientation and get your own numbers before you plan around them.

Start here

How Much House Can I Afford in Arizona? How Lenders Actually Decide

Lenders do not approve a price, they approve a payment. Here is the math they run on your income and debts, what goes into the payment, and how to find your real number before you shop.

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What Is Debt-to-Income Ratio and How Do Mortgage Lenders Calculate It in Arizona?

Your debt-to-income ratio is the single number that caps how much you can borrow. Here is exactly what counts, what does not, how lenders treat student loans and cards, and how to lower it fast.

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What Credit Score Do I Need to Buy a House in Arizona? By Loan Type

The minimum depends on the loan program and on the lender. Here are the floors buyers usually run into for conventional, FHA, VA and jumbo loans, why your score sets your price as well as your approval, and how to raise it fast.

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How Much Down Payment Do I Need to Buy a House in Arizona?

Twenty percent down is a myth for most buyers. Here is what each loan program actually requires, what putting less down really costs, and the cash you need beyond the down payment.

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Choosing your loan

What Is a Conventional Loan? How Conventional Mortgages Work in Arizona

A conventional loan is any mortgage not insured by the government. Here is who it suits, what it requires, how it compares to FHA, and the details that make it cheaper or more expensive for you.

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FHA or Conventional: How to Actually Decide, Not Which One Is Better

There is no better program, only a better fit. The decision usually turns on one thing people rarely weigh correctly: how long the mortgage insurance lasts on each.

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VA vs FHA vs Conventional: If You Have Entitlement, It Is Usually Not Close

No down payment, no monthly mortgage insurance and an assumable note. Here is the honest comparison, including the narrow cases where a veteran should use something else.

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15-Year vs 30-Year Mortgage: Which Should I Choose in Arizona?

A 15-year loan costs far less in total interest but carries a much higher payment. A 30-year loan buys flexibility. Here is how to decide, the math that matters, and the middle option most people never consider.

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Fixed-Rate vs Adjustable-Rate Mortgage: How an ARM Works and When It Makes Sense

An ARM trades a lower starting rate for future uncertainty. Here is how the fixed period, index, margin and caps actually work, how ARMs are underwritten, and the borrowers they suit and do not suit.

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What Is PMI and How Do I Get Rid of It? A Plain Answer for Arizona Homeowners

Private mortgage insurance protects the lender, not you, and on a conventional loan it does not last forever. Here is what it costs, the federal rules for removing it, and the three ways to get there faster.

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Rates and costs

How Are Mortgage Rates Set, and Why Is My Rate Different From the One Advertised?

Mortgage rates follow the bond market, then get adjusted for your credit, down payment, property and loan. Here is what moves rates day to day, the factors that set your personal rate, and how to compare quotes honestly.

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APR vs Interest Rate: What Is the Difference and Which One Should I Compare?

The interest rate sets your payment. The APR folds in certain loan costs so you can compare offers. Here is what each includes, where APR misleads, and how to compare two lenders properly.

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What Are Mortgage Points and Are They Worth It? The Break-Even Math

A discount point is prepaid interest: one percent of the loan amount paid at closing to lower your rate. Whether it is worth it comes down to one calculation and one honest question about how long you will keep the loan.

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Does Shopping for a Mortgage Hurt My Credit? How Rate Shopping Really Works

Multiple mortgage credit pulls within a short window are generally counted as one inquiry for scoring. Here is how the window works, the trigger lead calls you will get, and how to shop lenders without damaging your score.

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Lock or Float: How to Decide, and the Question Almost Nobody Asks

Locking protects your approval, not just your payment. That is the real reason to lock, and it is the one most buyers never hear. Here is the framework, plus what a float-down is worth.

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How to Read a Loan Estimate: A Page-by-Page Guide for Arizona Buyers

The Loan Estimate is a standard three-page form every lender must give you within three business days of applying. Here is what each section means, which numbers can change, and the lines to compare between lenders.

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Arizona Closing Costs: What Each Line Is and Who Customarily Pays It

A walk through the charges on an Arizona purchase, which ones a lender controls, which ones are fixed by third parties, and where a buyer can actually negotiate.

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Getting approved

What Documents Do I Need for a Mortgage Pre-Approval? A Complete Checklist

The documents a lender needs depend on how you earn money and where your down payment comes from. Here is the checklist by borrower type, the details that cause delays, and how to hand it over once instead of five times.

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Pre-Qualified, Pre-Approved, Underwritten: Three Different Things

A pre-qualification is a calculator. An underwritten pre-approval means a human read your documents and an underwriter signed off. In a competitive situation that difference is what wins the house.

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How Does Mortgage Underwriting Work? The Process Step by Step

Underwriting is how a lender verifies that you can repay, that the money is yours, and that the house is worth what you are paying. Here is what an underwriter checks, how long it takes, and how to get through it without surprises.

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What Are Mortgage Conditions and How Do I Clear Them Fast?

A conditional approval means yes, if. Here are the conditions underwriters ask for most, what each one really wants, and how to answer them so they clear the first time instead of coming back.

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Can I Get a Mortgage With a New Job or After Changing Jobs in Arizona?

Yes, often. Lenders care about stable, likely-to-continue income more than how long you have been at one employer. Here is how job changes, offer letters, gaps, pay type changes and probation periods are actually treated.

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Fix the Credit First: Why Sequence Decides Which Loans You Can Get

Credit work done before a file is structured changes which programs exist for you. The same work attempted after an offer is accepted does not, because the clock will not allow it. A real Scottsdale file that turned on this.

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Gift Funds for a Down Payment: What Has to Be Documented and What Cannot Be a Gift

Family gifts are routine and well-handled, as long as the paper trail is right. Here is what a gift letter needs, how the transfer should happen, and the three mistakes that create real problems.

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What Not to Do After You Apply for a Mortgage: 12 Mistakes That Delay or Kill Closings

Approval is not final until the loan funds. Here are the things buyers do between application and closing that trigger new conditions, change their ratios, or unwind an approval, and what to do instead.

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Contract to keys

What Is Earnest Money in Arizona and Can I Lose It?

Earnest money shows the seller you are serious. In Arizona it is held by escrow, credited at closing, and protected by your contract's contingencies if you act in time. Here is how much to put down and how buyers actually lose it.

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How Does a Home Appraisal Work for a Mortgage in Arizona?

The appraisal tells your lender what the house is worth as collateral. Here is who orders it, what the appraiser looks at, how comparables decide your value, and what happens if it comes in low.

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Homeowners Insurance for a Mortgage in Arizona: What Your Lender Requires

Your lender requires homeowners insurance before closing, and in Arizona the quote can surprise you. Here is what coverage is required, what drives the premium, when flood insurance applies, and how to avoid a last-week scramble.

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What Is an Escrow Account? How Property Taxes and Insurance Are Paid With Your Mortgage

An escrow or impound account collects a slice of your property tax and insurance with each mortgage payment and pays the bills when they come due. Here is how it is funded at closing, why your payment can change, and what an escrow shortage means.

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How Do Property Taxes Work in Arizona? A Home Buyer's Guide

Arizona property taxes are based on a limited value that can only rise so much each year, paid in two halves, and handled through your mortgage escrow. Here is how they are calculated, when they are due, and the new construction surprise to plan for.

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A Realistic Escrow Timeline: What Happens in Each Week, and What Moves the Date

Thirty days is achievable on a clean file and optimistic on most others. Here is what actually happens week by week, and the five items that most commonly push a closing.

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What Is a Closing Disclosure and What Is the 3-Day Rule?

You must receive your Closing Disclosure at least three business days before you sign. Here is what it is, how to check it against your Loan Estimate, and the three changes that restart the clock and can push your closing.

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After you own

When Should I Refinance My Mortgage? The Break-Even Math That Decides It

A refinance makes sense when the savings or the goal outweighs the cost before you would sell or refinance again. Here is the break-even calculation, the reasons to refinance besides rate, and the traps that make a refinance cost more than it saves.

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Cash-Out Refinance vs HELOC: Which Is Better for Pulling Equity in Arizona?

A cash-out refinance replaces your whole mortgage with a bigger one. A HELOC adds a line of credit on top and leaves your first mortgage alone. Here is how to choose, with the one question that usually decides it.

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Recast vs Refinance: Two Ways to Lower a Payment, and They Are Not Alternatives

A recast lowers your payment by applying a lump sum and re-amortizing at the same rate. A refinance replaces the loan. If your rate is good and you have cash, the recast is frequently the better move and almost nobody mentions it.

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If you were told no

Why Won't They Lend? The Six Real Reasons a Mortgage Gets Declined

A decline is almost never about you being a bad borrower. It is about one of six specific things, and three of them have nothing to do with your credit or income. Here is how to find out which one you hit.

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What to Do After a Mortgage Denial: Get the Letter, Then Work the Reason

You have a right to the specific reasons you were declined, in writing. Almost nobody asks for it, which is why almost nobody fixes the right thing. Here is the recovery sequence in order.

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Declined by One Lender, Approved by Another: How That Is Possible

Nothing about your file changes and the answer changes anyway. That is not a loophole, it is how investor overlays work, and it is the most useful thing a declined borrower can understand.

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Run the numbers yourself

Cash-Out Refinance Calculator

Enter every loan on the home and every debt to pay off. Returns the blended rate you carry today, the new loan amount and loan-to-value, and a new payment priced at the latest Freddie Mac survey average, refreshed daily and shown dated.

Rate Buydown Calculator

Compares 3-2-1, 2-1 and 1-1 temporary buydowns against a 30-year fixed and a permanent buydown funded with the same seller concession, and shows the month one passes the other.

Mortgage Calculator

Payment, taxes, insurance and mortgage insurance on a straightforward purchase.

Find out which program actually costs you less

FHA, conventional and jumbo price the same borrower very differently once the mortgage insurance is compared across the years you will own the home. Tell me the shape of your file and I will run them side by side.

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Talk to the principal, not a call center

Ricky Khamis is President of EPiQ Lending and a Certified Mortgage Planner, NMLS #173141, originating mortgages since 1999. EPiQ Lending is NMLS #1936984, at 7975 N. Hayden Road, Suite A-101 in Scottsdale. Verify all of it before you trust any of it: the EPiQ Lending profile, the Scottsdale branch, and the license itself at NMLS Consumer Access.

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