Resources
Frequently Asked Questions
Real answers to the questions homebuyers ask most. No jargon, no runaround.
Getting Started
A bank offers you their rates and products. A broker like Phi shops 40+ lenders to find the best rate for your situation. Same application process, but you get access to far more options — often at lower rates. There's no extra cost to you; the lender pays the broker.
Fill out our pre-approval form or book a call. Phi will review your income, credit, and debts to tell you exactly what you qualify for. The initial conversation does not require a hard credit pull.
The initial conversation and soft pull does not affect your credit score. A hard credit inquiry is only pulled when you're ready to formally apply for a loan, and even then, multiple mortgage inquiries within a 45-day window count as a single inquiry.
No. The consultation is 100% free with no obligation. There are no application fees or upfront costs. You only pay at closing, and Phi is compensated by the lender — not you.
Down Payments & Costs
It depends on the loan program: VA loans require $0 down. FHA loans start at 3.5%. Conventional loans can go as low as 3%. Down payment assistance programs in Sacramento may cover part or all of your down payment.
Closing costs are fees charged at the end of the transaction — appraisal, title insurance, escrow, recording fees, etc. They typically run 2–5% of the loan amount. Some programs allow you to roll closing costs into the loan, and sellers can sometimes contribute toward them.
Yes. FHA, VA, and conventional loans all allow gift funds for the down payment. The gift must come from a family member, employer, or approved source, and a gift letter is required. In many cases, your entire down payment can be a gift.
Credit & Qualifying
Minimums vary by program: FHA accepts 580+ (or 500 with 10% down). Conventional usually needs 620+. VA has no official minimum (most lenders want 620+). Even if your score is lower, talk to Phi — there may be options, or a short credit improvement plan could make a big difference.
Absolutely. Self-employed borrowers typically need 2 years of tax returns showing stable or rising income. Some lenders also offer bank statement loans that use 12-24 months of deposits instead of tax returns. Phi has access to lenders with flexible self-employment guidelines.
DTI is the percentage of your gross monthly income that goes toward debt payments (car loans, student loans, credit cards, plus the new mortgage payment). Most programs allow up to 43–50% DTI. Use our affordability calculator to estimate where you stand.
The Process
From application to closing, the typical timeline is 30-45 days. Pre-approval can happen in 24 hours. The biggest variable is how quickly you provide documents. Phi will give you a clear checklist upfront so there are no surprises.
Standard checklist:
- Last 2 years of W-2s (or tax returns if self-employed)
- Last 30 days of pay stubs
- Last 2 months of bank statements
- Government-issued ID
- If applicable: divorce decree, VA Certificate of Eligibility, gift letter
Pre-approval tells you how much you can borrow. From there: find a home → make an offer → go under contract → appraisal → underwriting → clear to close → sign and get keys. Phi guides you through every step and coordinates with your real estate agent.
Yes. Once you're under contract on a home, Phi can lock your rate — typically for 30, 45, or 60 days. This protects you from rate increases while your loan is processing. Phi will advise on the best timing based on market conditions.
Refinancing
Refinancing typically makes sense when you can lower your rate by 0.5–1%+, when you want to shorten your term, remove PMI, or access cash from your equity. Use our refinance calculator to see your potential savings and break-even point.
Still Have Questions?
Book a free 30-minute call with Phi. No pressure, no obligation — just answers.
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