FAQs

Pre-qualification is a determination of the loan amount you're likely to receive. It is not a guarantee of approval. To obtain pre-qualification, you usually are interviewed by a licensed loan officer who determines the pre-qualification amount. You will be issued a letter with this information that you can present when making an offer on a home. It's important to understand that pre-qualification does not imply any obligation from the lender that you will be approved.

Pre-approval is more thorough than pre-qualification. To be pre-approved, you must submit an application and verify your credit and financial history. After you receive your pre-approval certificate, you're in a stronger position to close earlier and negotiate a better price. It's highly recommended that you seek pre-approval if you are shopping for a home.

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Stop house hunting until you are fully pre-approved. In Tucson and Southern Arizona, buyers lose homes every day because they are only pre-qualified. Sellers want verified buyers, not guesses. Message Approval to get started or go to https://linktr.ee/ThePolderGroup #TucsonRealEstate #SouthernArizona #HomeBuyingTips #MortgageTok #PreApproval #ArizonaHomes #TucsonLiving #FirstTimeBuyerAZ #RealEstateAdvice #HouseHunting

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Location is key. Factors like crime rate, public school ratings, daily commute times to surrounding metropolitan areas, as well as the vicinity to local parks, libraries, swimming pools, sport arenas, churches, restaurants and shopping centers are essential in the price valuation of real estate. It’s best to consider the location as much as the condition of a home when you are looking to make a purchase.

• Proof of Income – Find and make copies of your pay stubs.
• Tax Information – Gather your W-2s, 1099s, and tax returns for the last 2 years. If you're self-employed or an independent contractor, you'll be required to provide your 1099-MISC information.
• Credit Details – We'll perform a credit check when you apply.
• Debt Documentation – You'll be required to provide documentation on your outstanding financial commitments. Gather materials on your current mortgage, car loans, student loans and any other debts.

Points are prepaid interest that you can pay up front. You can pay points to get a lower rate on both fixed rate and adjustable rate mortgages, but the points charged to reduce the rate may vary depending on the type of loan. One point is equal to 1% of the mortgage amount. (Example: $100,000 mortgage amount = $1,000 point)

It depends on your particular situation. Three major factors should be considered when deciding whether to pay points:

1. How much you can afford to pay upfront?
2. How long do you expect to make payments on your mortgage?
3. What is the length of your loan, and how long do you plan to live in the home?

Many people looking for a long-term mortgage opt to pay points to ease their monthly payments. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points.

The interest rate isn't always the most important factor in selecting a mortgage. You want to make sure you're doing business with a reliable, reputable business. A trustworthy lender will be able to provide all of the details of your loan, including pre-approval, in writing. When shopping for a mortgage provider, don't forget to ask friends and family members for recommendations. Although online reviews are available, they may not be as thorough as hearing feedback from the people you know. It's also reasonable that if the people closest to you were happy with their experience, you will be, too.                               

Also, make sure that you understand the full cost of the loan and that you feel comfortable with all of the terms. For instance, pre-payment penalties, a large down payment requirement, or larger monthly payments may cause the loan to be less than ideal — regardless of the interest rate.

• Form 1003 — The residential loan application — including the attached Fair Lending notice, loan info sheet, and credit authorization. Note: Do not use whiteout on this paperwork. Mistakes should be crossed out and initialed.
• Copies of W-2s or tax returns for the previous 2 years.
• If you own rental units, provide the most recent rental agreement and tax returns for previous 2 years.
• Your last 3 bank statements along with the most recent statements for any mutual funds, IRA/401(k), or stock accounts.
• Settlement agreement and divorce decree (if applicable).
• Letter explaining how you plan to utilize refinance proceeds if you're seeking a cash-out refinance.
• Non-U.S. citizens must present their Green Card or H-1 or L-1 visa.
• If you've filed for bankruptcy, present a schedule of creditors, discharge notice, and filing.
• If you're applying for a second loan, include the first mortgage note. These documents may not be all-inclusive, but by having these on hand, you will expedite the application.

After selecting and applying for a loan, the approval process begins. For approval, we must verify your credit, employment history, assets, property value, and anything else required by your particular circumstances.

Although it may seem intuitive to move money around in accounts to show financial strength, this is actually not advisable. All facets of your income will be considered when applying for a loan. It’s best not to make any financial changes that could alter your eligibility, especially placing money from untraceable sources into your accounts. Additionally, don’t change your employment during the home loan process. Steady employment can be a factor in determining loan qualification. Lastly, large purchases such as cars, appliances or furniture can negatively impact the outcome of the loan.

• Interest rates change based on the demands of the market. When a high demand exists for loans, interest rates increase to take advantage of an active market. If demand for mortgages is low, interest rates decrease to entice new customers.
• Inflation also has a major impact on mortgage rates. Inflation is associated with a growing economy. As the economy grows, the prices for goods and services increase along with it. This price inflation affects real estate along with everything else, pushing up the price for mortgages.
• Lastly, the Federal Reserve has the ability to influence interest rates for the purpose of controlling inflation and employment. It can do this by raising or lowering the discount rate, and indirectly influencing the direction of the Federal funds rate.

Just as the name suggests, this is a loan where you pay no points and no fees upfront. You pay a higher rate and the lender agrees to pay the upfront costs. This is a popular loan for first-time homebuyers with less cash who want to limit the upfront fees they pay. It’s also a popular loan for people looking to refinance. Since there are no fees, there’s no penalty for refinancing whenever interest rates drop, even if you refinance multiple times in a year. Zero-point/zero-fee loans are particularly useful for people who will not be spending a long time in their home. If you’re looking to move within five years, there’s little downside to this type of loan. However, if you stay in the home for the long term, you’ll eventually end up losing money by paying at a higher rate over a longer period of time

• A mortgage rate lock is a promise to you from the lender to hold a specific combination of an interest rate and points for an agreed upon time (typically 10, 15, 30, 45 or 60 days) until you can close on your home. Locking in a rate protects you from unforeseen interest rate increases that can occur in the days or weeks leading up to closing, but conversely, if the rates fall, you may not be able to take advantage of the lower rates.
• Rate locks are dependent on the type of loan program, current interest rates, points, and the length of the lock. To hold a rate for longer periods of time, you usually have to agree to pay higher points or interest rates.

Yes. An active secondary mortgage market exists in which lenders and investors buy and sell pools of mortgages. If another company purchases your mortgage, it assumes all terms and conditions. A new lender cannot change the rate, payments, or any other aspect of the agreement. You will only have to send payments to the new loan servicer.

In this instance, you’re still obligated to make payments. Usually, a lender that goes out of business is forced to sell their mortgages to other lenders. The terms and conditions will not change, but you will have to send payments to the new loan servicer.

• Private mortgage insurance (PMI) protects the lender from the costs of foreclosure. You may be obligated to purchase PMI if you can’t make a sufficient down payment of at least 20%. By purchasing PMI, you will have access to a mortgage without having to make a large down payment, and the lender is insured in the event that you default on the loan.
• The price of PMI is inversely proportional to the size of your down payment. The larger your down payment, the lower the cost of PMI will be.

Talk to your loan officer before making a large purchase. Moving money around in your accounts or increasing your debt to income ratio could affect your loan.

Talk to your loan officer if there is going to be a change in your employment. It’s best to have steady employment for at least 2 years and verifiable income when applying for a loan

Inspections are important to understand the condition of the home. They can also be helpful when it comes time to negotiate with the sellers, in terms of lowering the price of the home, or adding service stipulations to the contract.

Not always. Many programs define first time buyers as someone who has not owned a home in the past three years.

Some programs offer grants that do not require repayment. Others are forgivable or deferred loans depending on the structure.

Yes. Many assistance programs are designed to work with FHA financing.

Most programs have income limits based on household size and county guidelines.

It depends on the program. Some are forgiven over time, while others are repaid when you sell, refinance, or move.

Many programs offer between 2 percent and 5 percent of the purchase price, though some programs may offer more depending on eligibility.

Qualification depends on your income, credit, and location. We help you review your options and identify the best programs available.

FICO stands for Fair Isaac Corporation. This company is a pioneer and leader in credit scoring. Your FICO score is a number that tells creditors how likely you are to pay off your debts. FICO and the credit bureaus do not disclose their exact computation methods. However, most credit scores are calculated through models that assign points to different factors of your credit history to best predict future performance. There are many commonly analyzed factors in your credit history, including:

• Payment history
• Employment history
• How long you have had credit
• How much credit you have used compared to how much you have available
• How long you've lived at your current residence
• Negative credit/financial events such as collections, bankruptcies, charge-offs, etc

• Identifying information — Social Security number, date of birth, employment information (these facts are not determining factors in credit scoring)
• A list of debts — how many credit lines have been opened and closed, types of credit lines, a history of how you’ve paid them, loan limits, and current balances
• Public record information — bills referred to collection agencies, bankruptcies, foreclosures, suits, liens, etc.
• Inquiries made about your creditworthiness during the last two years — voluntary and involuntary inquiries.

Raising a credit score is not always easy and not something that can be done overnight. There are several credit best practices that will raise your rating over time:

• Pay your bills on time. This is extremely important. Collections and late payments can lower your credit scores.
• Reduce your credit balances. Maxed out credit cards will lower your credit score.
• Don’t apply for credit often. This reflects poorly on you and your rating.
• Establish credit history.

Yes, errors and fraud should be reported to both the credit reporting agency that provided the report with the error or fraud, as well as the creditor that provided the erroneous or fraudulent information to the credit reporting agency. At this time, Experian and Equifax are only accepting disputes via their online forms. TransUnion handles disputes by phone, standard mail and an online form. We have provided you with information below to access these agencies per myFICO.com.

• Equifax: https://www.ai.equifax.com/CreditInvestigation/home.action
• Experian: http://www.experian.com/rs/fi4.html
• TransUnion: TransUnion Disputes 2 Baldwin Place, P.O. BOX 1000 Chester, PA 19022 1-800-916-8800 http://www.transunion.com/corporate/personal/creditDisputes.page

No. FHA loans are available to both first time and repeat buyers as long as the home is your primary residence.

Most borrowers qualify with a 3.5% down payment, depending on credit score.


Yes. FHA loans include both an upfront and monthly mortgage insurance premium.


No. FHA loans are generally easier to qualify for than conventional loans due to more flexible credit and income requirements.


A 580 credit score typically qualifies for 3.5 percent down. Lower scores may still qualify with a larger down payment.

Most buyers qualify with 3.5 percent down. This can come from savings, gift funds, or assistance programs.

Yes. FHA loans are commonly combined with down payment assistance programs in Arizona.

Yes. You can purchase a two to four unit property as long as you live in one of the units.

Yes. Many buyers refinance into a conventional loan later to remove mortgage insurance.

Conventional loans typically require higher credit scores but offer lower long-term costs, while FHA loans are more flexible with credit requirements but include mortgage insurance.


No. Some programs allow as little as 3% down. However, putting 20% down eliminates the need for mortgage insurance.


Yes. Conventional loans are commonly used for second homes and investment properties.


Most conventional loans require a minimum credit score of around 620, but higher scores provide better rates and lower costs.

Closing costs are generally similar to other loan types and vary based on loan size and location.

The best option depends on your credit, income, and down payment. We help you compare both options and choose the best long term strategy.

Yes. Private mortgage insurance can be removed once you reach 20 percent equity and may automatically fall off at 22 percent.

It depends on your financial profile. Buyers with stronger credit often benefit more from conventional loans due to lower long term costs.

VA loans are available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves, as well as some surviving spouses.


No. Most VA loans offer 100% financing, meaning no down payment is required.


The VA funding fee is a one-time fee that helps support the program. It can often be rolled into the loan amount.


No. VA loans do not require monthly mortgage insurance, which can significantly reduce monthly payments.


No. VA loans do not require monthly mortgage insurance.

Yes. VA loans are reusable depending on your remaining entitlement.

No. VA loans are for primary residences only.

Most VA loans close in about 30 to 45 days depending on the transaction.

Many lenders look for scores around 580 to 620, though guidelines are flexible.

No. You can use your VA loan benefit anywhere, including relocating to Tucson or Southern Arizona.

Yes. Many eligible buyers use VA loans to purchase homes near the base and throughout Tucson.

USDA loans are available in eligible areas, which are typically outside of major urban centers. Many suburban locations may still qualify.


No. USDA loans are available to any eligible borrower who meets income and property requirements.


No. USDA loans offer 100% financing for qualified buyers.


Income limits vary based on location and household size. Eligibility is based on total household income, not just the borrower.


No. USDA loans are available to both first time and repeat buyers as long as the home is your primary residence.

Many suburban areas around Tucson qualify. We can quickly check if a specific address is eligible.

Yes. Household income must fall within USDA limits based on location and household size.

No. USDA loans are only for primary residences.

USDA loans may take slightly longer because they require both lender approval and USDA review.

Yes. USDA offers refinance options for existing USDA loans.

Qualification depends on your income, credit, and the property location. We help you review everything and determine eligibility quickly.

A jumbo loan is any mortgage that exceeds the conforming loan limits set by federal housing guidelines.


Not necessarily. Rates can be competitive, especially for well-qualified borrowers.


Most lenders look for a credit score of 700 or higher, though requirements may vary.


Jumbo loans typically require stronger financial profiles, including higher credit scores, larger down payments, and more detailed documentation.


The best jumbo lender is one who understands complex financial profiles and local market conditions. The Polder Group specializes in structuring jumbo loans for buyers in Tucson and Southern Arizona.

Not necessarily. Well qualified borrowers often have a smooth process with the right guidance and proper planning.

In many cases, no mortgage insurance is required with 20 percent down, though options can vary depending on the loan structure.

They can be, but in many cases jumbo loan rates are competitive depending on credit strength, assets, and overall financial profile.

Yes. Self employed borrowers can qualify with proper documentation and strategic income structuring.

Most jumbo loans require a credit score of around 700 or higher. Stronger credit profiles may qualify for better rates and more flexible options.

Income requirements vary based on loan size and overall financial profile. Lenders look for stable, consistent income that supports the monthly payment and total debt obligations.

Manufactured homes are built to federal HUD standards and typically constructed off-site, while modular homes are built to local building codes and are often treated more like traditional homes for financing.


In most cases, financing is more limited when the home is not on owned land. Many programs require the home to be permanently affixed to land you own.

They can have more specific requirements than traditional homes, but there are still several financing options available depending on the property and borrower qualifications.


Rates can vary depending on the loan type, credit profile, and property setup, but competitive options are often available.


A renovation loan allows you to finance both the purchase (or refinance) of a home and the cost of improvements in a single mortgage.


Funds are typically held in escrow and released in stages as the renovation work is completed.


Yes. Most renovation loan programs require licensed contractor bids and project approval before funding.


Yes. Many programs allow you to refinance your existing mortgage while funding improvements at the same time.


Yes. Many programs allow cosmetic improvements such as flooring, painting, cabinets, and appliances.

In most cases, licensed contractors are required.

Most programs require completion within about six months, though timelines vary.

Renovation loans are based on the after improvement value of the home.

Yes. Many programs allow you to refinance and include renovation costs.

They may have slightly higher rates or fees than standard loans, but they are often more affordable than separate financing options.

It depends on the property, cost of improvements, and long term goals. We help you evaluate the numbers and make the right decision.

You replace your current mortgage with a new, larger loan and receive the difference in cash at closing.


This depends on your home’s value, loan program, and how much equity you have available.
Most programs allow you to borrow up to 80 percent of your home’s value, depending on your loan type, equity, and financial profile.

It depends on your goals. A cash-out refinance replaces your mortgage, while a home equity loan is a second loan. Each has different benefits depending on your situation.


Yes. Funds can typically be used for debt consolidation, home improvements/renovations, investments or other major expenses.


It depends on your goals. A cash out refinance replaces your mortgage, while a HELOC is a second loan. We help you compare both options based on your situation.

Yes. Your existing loan is replaced with a new loan at current market rates.

Most refinance transactions take approximately 30 to 45 days depending on the appraisal and documentation.

In some cases, interest may be tax deductible when funds are used for home improvements. You should consult a tax professional for guidance.

It depends on your current loan, interest rate, and financial goals. We help you break down the numbers so you can make a confident decision.

Refinancing may make sense when interest rates improve, your home value increases, your credit profile strengthens, or your financial goals change. Many Tucson homeowners refinance to lower monthly payments, remove mortgage insurance, shorten their loan term, or access home equity.
 

Yes. Many homeowners refinance to secure a lower interest rate, extend their loan term, or remove mortgage insurance, which can reduce monthly mortgage payments and improve cash flow.

Most refinance programs require homeowners to have some level of equity in the property. The amount depends on the loan type, property value, and refinance goals. Cash-out refinance programs typically require higher equity levels than standard rate-and-term refinances.

A cash-out refinance allows homeowners to replace their current mortgage with a new loan while accessing a portion of their home equity as cash. Tucson homeowners often use cash-out refinancing for home improvements, debt consolidation, tuition expenses, or other major financial goals.

Yes. FHA homeowners may qualify for several refinance options, including FHA Streamline Refinancing, which can simplify the refinance process for eligible borrowers while potentially lowering monthly payments or improving loan terms.

Refinancing may temporarily impact your credit score because lenders perform a credit inquiry during the application process. However, many homeowners see long-term financial benefits from refinancing that outweigh the short-term impact.

Most mortgage refinances take approximately 30–45 days, depending on the loan type, appraisal requirements, documentation, and underwriting timeline.

Yes. Increased home values may improve your equity position and create additional refinance opportunities, including lower rates, mortgage insurance removal, or cash-out refinance options.

In some cases, yes. Homeowners with sufficient equity may be able to refinance into a loan without monthly mortgage insurance, potentially lowering their monthly housing costs.

A rate-and-term refinance focuses on improving the interest rate, monthly payment, or loan structure without pulling cash from equity. A cash-out refinance allows homeowners to access a portion of their available home equity as funds at closing.

Possibly. Eligibility depends on your current loan type, equity position, lender guidelines, and how long you’ve owned the property. Some refinance programs have seasoning requirements before refinancing is allowed.

Many refinance programs require a home appraisal to confirm current market value. However, certain refinance options may qualify for appraisal waivers depending on the loan type and borrower qualifications

Yes. Some homeowners use cash-out refinancing to consolidate higher-interest debt into a single mortgage payment, potentially simplifying monthly finances and reducing overall interest costs.

Refinancing into a shorter term, such as moving from a 30-year mortgage to a 15-year mortgage, may help build equity faster and reduce long-term interest costs, though monthly payments may increase.

Yes. Refinancing options are available for investment properties and second homes, though qualification requirements and interest rates may differ from primary residence refinancing.

Refinance rates can differ based on market conditions, loan type, equity position, credit profile, and property occupancy. Our team helps Tucson homeowners compare refinance scenarios and evaluate potential savings clearly.

It depends on your long-term goals and how quickly refinance savings offset closing costs. We help homeowners evaluate break-even timelines to determine whether refinancing makes financial sense.

Possibly. Some refinance programs offer more flexible credit guidelines depending on equity position, loan type, and overall financial profile. Our team helps homeowners explore available refinance options based on their situation.