Learn Mortgage Basics | Reno Home Buying Guide

Core Topics

Everything You Need to Know Before You Buy

27 years of client questions distilled into clear, honest answers. No jargon. No sales pitch.

🔑

How to Get Pre-Approved

Pre-approval is the first real step to buying a home. Art reviews your credit, income, and assets to issue a solid letter that sellers and agents take seriously. It takes about 24 hours and there's no cost or obligation. Learn more: CFPB: Mortgage preapproval.

Start Pre-Approval →

📈

What Affects Your Mortgage Rate

Your rate is determined by: credit score, loan-to-value ratio, loan type, property type, occupancy, and market conditions (the 10-Year Treasury). Art explains exactly where yours stands and what you can do to improve it. Learn more: FRED: 10-Year Treasury Rate (St. Louis Fed).

Talk to Art →

🏠

FHA vs. Conventional vs. VA vs. USDA

FHA: 3.5% down, flexible credit. Conventional: 3% down, no upfront MIP. VA: $0 down, no PMI, veterans only. USDA: $0 down, rural/suburban areas. Art will tell you which one is right for your specific situation, not the most common answer, but your answer. Learn more: HUD: FHA loan programs.

See All Programs →

💰

Closing Costs: What to Expect

Closing costs in Nevada typically run 2-3% of the loan amount. They include lender fees, title insurance, escrow, prepaid interest, and property taxes. Art provides a Loan Estimate within 3 business days of application so there are no surprises at the table. Learn more: CFPB: Closing costs explained.

Closing Cost Guide →

🔄

When Does Refinancing Make Sense?

Art's break-even formula: divide total closing costs by monthly savings. If you stay in the home longer than that number of months, you come out ahead. Rule of thumb: if you can drop your rate by 0.75%+ and plan to stay 2+ years, run the numbers with Art. Learn more: CFPB: Refinancing your mortgage.

Refinance Page →

💼

Self-Employed? How Bank Statement Loans Work

If you own a business, your tax returns show your taxable income, not your actual cash flow. Bank statement loans let Art qualify you on 12-24 months of deposits instead. No W-2s, no tax returns, no problem. Learn more: CFPB: Self-employed income documentation.

Bank Statement Program →

Frequently Asked Questions

Questions Art Gets Every Day

Straight answers from 27 years of client conversations.

How much down payment do I really need?+

It depends on the loan type. VA and USDA require $0 down. FHA requires 3.5% (with 580+ credit). Conventional requires as little as 3%. Jumbo typically requires 10-20%. Art also has Down Payment Assistance programs that can cover some or all of your down payment with grants or forgivable loans.

What credit score do I need to buy a home?+

FHA allows as low as 580 (with 3.5% down) or even 500 (with 10% down). Conventional typically requires 620+. VA has no minimum but most lenders want 620+. Art has a “Fresh Start” credit improvement program for clients who are close but not quite there yet.

How long does it take to close on a home?+

Art typically closes in 21-30 days from a fully executed contract. Some complex files take 45 days. With PRMG's in-house underwriting, Art avoids the third-party delays that can push timelines to 60+ days at other lenders.

Can I buy a home if I just started a new job?+

Yes, in many cases. It depends on the type of employment change. Same field + salary or better = usually fine. New field = depends. Probationary period = depends. Art has closed loans for clients who started their job the week before closing. He knows which loan programs allow it and which do not.

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

Pre-qualification is a rough estimate based on self-reported information. It is worth almost nothing to a seller. Pre-approval means Art has actually verified your income, assets, and credit. It is a real commitment that sellers and agents respect. Art only issues pre-approvals, not pre-qualifications.

Should I lock my rate now or wait for rates to drop?+

Nobody can predict rates with certainty, not Art, not the Fed, not Wall Street. What Art will tell you: if the payment works for you today, lock it. If you are buying a forever home, the rate matters less than the decision. If rates drop significantly after closing, Art will call you about refinancing. That is what “mortgage guy for life” means.

Mortgage Glossary

Key Terms Explained Simply

The mortgage industry loves acronyms and jargon. Here are the ones you will actually encounter.

APR

Annual Percentage Rate. The true cost of borrowing including the interest rate plus fees, expressed as a yearly rate. Higher than the interest rate.

DTI

Debt-to-Income Ratio. Your total monthly debt payments divided by your gross monthly income. Most programs want 43-50% or lower.

LTV

Loan-to-Value Ratio. Your loan amount divided by the property value. 80% LTV means 20% down. Lower LTV = better rate.

PMI

Private Mortgage Insurance. Required on conventional loans when LTV exceeds 80%. Cancels automatically at 78% LTV.

MIP

Mortgage Insurance Premium. FHA's version of PMI. Includes an upfront fee (1.75% of loan) plus annual monthly premiums.

Escrow

An account your lender manages to pay your property taxes and homeowner's insurance. Your monthly payment typically includes PITI: Principal, Interest, Taxes, Insurance.

Underwriting

The process where the lender verifies your income, assets, credit, and the property to approve your loan. PRMG does this in-house, so it moves faster.

Rate Lock

Guarantee from the lender that your rate will not change for a set period (typically 30-60 days). Protects you if rates rise before closing.

Clear to Close

The underwriter has approved all conditions and your loan is cleared to fund. This is the green light, closing day is typically 1-3 days away.

DSCR

Debt Service Coverage Ratio. An investor loan that qualifies based on a rental property's income relative to the mortgage payment. No personal income needed.

Conforming Loan

A loan that meets Fannie Mae and Freddie Mac limits ($832,750 in most of Nevada for 2026). Above this limit = jumbo loan, different guidelines.

Points

Prepaid interest. 1 point = 1% of the loan amount. Buying points lowers your rate. Art will calculate the break-even to tell you if points make sense for you.

Learn How Mortgages Work