Points are simply a way to pre-pay interest on your loan. One point equals 1% of your loan amount. For example, on a $100,000 loan, one point would be $1,000. Sometimes these are called discount points, and by paying them up front, you can lower your interest rate for the life of your loan. Every loan is unique, so whether points make sense depends on your plans and goals. At MLM we walk through this with you in plain language so you can decide if points are right for you.
The Annual Percentage Rate, or APR, is a way of showing the true cost of a loan over a year. It’s usually a little higher than the interest rate you see advertised because it includes other costs such as points, processing fees, and mortgage insurance. Think of it as a tool that helps you compare loans side by side.
What APR doesn’t do is change your monthly payment. That is based only on your interest rate and loan term. Because APR takes into account a variety of fees, a lower APR doesn’t always mean it is the better choice. That is why we go beyond numbers and review actual costs with you line by line. At MLM we believe in full transparency so you know exactly what you are paying for.
Mortgage rates can change daily. A rate lock is a way of protecting yourself from those changes. By locking in, you’re guaranteed a specific interest rate for a set period of time, usually 30 to 60 days, while your loan is being processed.
Every borrower’s situation is different, but there are a few documents most lenders will need: recent pay stubs, bank statements, retirement account statements, and insurance information. If you’re receiving Social Security or retirement distributions, we’ll ask for the awards letter. Divorce or separation? We’ll need those decrees as well.
It may sound like a lot, but don’t worry. At MLM we’ll guide you step by step. For more details, check out our [Application Checklist].
Credit scores are one of the main ways lenders look at your ability to repay. They come from your credit history—things like on-time payments, balances compared to your limits, length of your history, and recent activity. The most common scores are FICO scores, which range from 350 to 850.
We encourage you to review your credit reports from Equifax, Experian, and TransUnion each year. You can request free reports at annualcreditreport.com.
There is no magic trick, but there are proven habits:
It takes patience, but steady progress matters. At MLM we can talk through where you are now and share ideas on how to strengthen your score before or during the loan process.
An appraisal is a professional opinion of your home’s value. It gives everyone confidence that the loan amount matches the property’s worth. Appraisers are licensed professionals who look at the home, its location, condition, and comparable sales nearby.
At MLM, we respect our appraisers and partner with a management company that pays them fairly and quickly. This helps us attract the best appraisers and receive reports promptly, usually within 8 calendar days once the home is made available.
On a conventional loan, if you put down less than 20% of the purchase price, lenders require PMI. It protects the lender in case payments are not made. While PMI is an extra cost, it is what allows many families to buy a home with less money up front. There are even options to remove PMI later as you build equity.
We’ll explain what PMI would look like in your specific case and make sure you know your options.
Closing is when your new home officially becomes yours. You’ll meet with your attorney, our MLM representative, and others involved in the transaction. Together, we’ll go through the documents, sign what is needed, and record the deed.
It usually takes less than an hour, and at the end, you’ll receive your keys. We see closing as a celebration—you’ve reached a huge milestone, and we’re honored to be there with you.