New York Mortgage FAQs

A bank or direct lender offers only their own loan products, meaning you’re limited to whatever rates and programs they have available. A mortgage broker like Maple Tree Funding works with dozens of lenders on your behalf, shopping for the best rate and program to fit your specific situation. Because we’re independent, our loyalty is to you — not to any single lender. Learn more on our mortgage broker vs. bank page.

The process starts with a conversation. You can fill out our online preapproval form or call us directly at (518) 782-1202. One of our licensed loan originators will walk you through gathering the necessary documents—including income verification, tax returns, bank statements, and ID—and guide you through the full application process from start to finish. Learn more about how to apply for a mortgage.

Most mortgage applications require two years of W-2s (and/or tax returns if self employed or claiming rental income), recent pay stubs, two to three months of bank statements, a copy of a government-issued ID, and information about any existing debts or assets. Self-employed borrowers may need additional documentation such as profit and loss statements. See our full documents checklist for details.

At Maple Tree Funding, many loans close in as little as 21 days. The timeline depends on the loan type, how quickly documents are submitted, and the complexity of the transaction. Government loans such as FHA, VA, and USDA can sometimes take a few days longer due to additional appraisal and underwriting requirements.

A fixed-rate mortgage locks in your interest rate for the entire life of the loan (e.g., 15 or 30 years), ensuring your monthly principal and interest payment never changes. An adjustable-rate mortgage (ARM) provides a lower introductory rate for a set period (often 5 or 7 years) before adjusting periodically based on market trends. An ARM can be a smart, cost-saving choice if you plan to move or refinance before the introductory rate period ends.

A Jumbo Loan is a non-conforming mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). If you are purchasing a home that requires borrowing more than this amount, you will need a Jumbo Loan. Because these loans are not backed by Fannie Mae or Freddie Mac, they typically require higher credit scores and larger down payments. Learn about the current FHFA loan limits here. 

Yes. New York is an “attorney-closing state,” which means a licensed real estate attorney is required to handle the transaction. Your attorney will review the purchase contract, run a title search, and represent your legal interests at the closing table. Maple Tree Funding works closely with local NY attorneys to ensure a seamless closing process. Learn more about who is involved in buying a home in New York.

Your monthly mortgage payment typically includes four components: principal (the loan balance), interest, property taxes (held in escrow), and homeowner’s insurance (also escrowed), although some conventional loans do not require escrow. This is commonly referred to as PITI. Some loans also require private mortgage insurance (PMI) if your down payment is less than 20%. Read more about what’s included in a monthly mortgage payment.

An escrow account is a separate account held by your loan servicer that collects a portion of your monthly payment to cover property taxes and homeowner’s insurance when they come due. Rather than paying these large bills once or twice a year, the amounts are spread across your monthly payments. Learn more about how mortgage escrow accounts work.

Closing costs are fees paid at the settlement of your mortgage and typically range from 2% to 5% of the loan amount. They include lender fees, appraisal fees, title insurance, attorney fees, prepaid taxes and insurance, and more. At Maple Tree Funding, there are no application fees to get started. Learn more about closing costs and how to estimate them.

Many people who think they can’t qualify for a mortgage actually can — they just need the right lender and loan program. Even if you have a low down payment, imperfect credit, or are self-employed, there are programs designed for your situation. The best first step is a conversation with one of our loan originators. Learn more on our can I buy a home page or find out how much home you can afford.

Minimum credit score requirements vary by loan type. Conventional loans typically require a score of 620 or higher. FHA loans may be available with scores as low as 580. VA and USDA loans don’t set a federal minimum, but most lenders look for 580–620. The higher your score, the better the rate you’ll qualify for. Read more about credit scores and home mortgage loans.

Yes, obtaining a mortgage with less-than-perfect credit is absolutely possible. While conventional loans generally look for a score of 620 or higher, government-backed programs like FHA loans are much more forgiving, often accepting credit scores as low as 580. At Maple Tree Funding, we specialize in helping borrowers with a wide range of credit profiles explore their options, including our bad credit home loan programs. 

Most lenders pull scores from all three major credit bureaus — TransUnion, Equifax, and Experian. For individual borrowers, the middle score is used. For joint applications, lenders typically use the lower of the two borrowers’ middle scores. Learn more about how lenders determine your qualifying credit score.

Your mortgage interest rate is the cost you pay to borrow money, expressed as a percentage of the loan amount. Rates are influenced by the broader economy, Federal Reserve policy, and your personal financial profile — including credit score, loan size, down payment, and loan type. Rates change daily. Learn more about how mortgage interest rates work.

A rate lock guarantees your interest rate for a set period (typically 30–60 days) while your loan is processed. If rates are rising, locking in protects you. If rates are falling, floating means you could benefit from a lower rate before closing — but it’s a gamble. Our loan originators can help you decide based on current market conditions. Learn more about locking vs. floating your mortgage rate.

Private mortgage insurance (PMI) is required on conventional loans when your down payment is less than 20% of the home’s purchase price. It protects the lender, not you. Once you’ve built 20% equity in your home (either through payments or appreciation) you can request a formal appraisal to have PMI removed, though lender policies may vary. By law, lenders must automatically cancel it when you reach 22% equity. Learn more about when you can stop paying mortgage insurance.

A larger down payment reduces your loan amount, lowers your monthly payment, and can help you avoid private mortgage insurance (PMI) on conventional loans. 97% Financing is available on some programs, and VA and USDA loans require no down payment at all. Learn more about down payments and PMI.

The mortgage process can feel overwhelming, but it doesn’t have to be. The key steps are: check your credit, determine your budget, get pre-approved, find a home, lock your rate, and close. Our team specializes in walking first-time buyers through each stage. Visit our First-Time Homebuyers guide for a full overview.

Common mistakes include not getting pre-approved before shopping, making large purchases or opening new credit accounts during the process, underestimating closing costs, and skipping a home inspection. Read our full guide to common first-time homebuyer mistakes.

Buying a home involves several professionals: a real estate agent representing the buyer, a listing agent representing the seller, a mortgage broker or lender (that’s us), a home inspector, an appraiser, a title company or attorney, and sometimes a real estate attorney. Learn more about who is involved in buying a home in New York.

Pre-approval is a formal process where a lender reviews your income, credit, and assets and issues a letter stating how much you’re qualified to borrow. It shows sellers you’re a serious, qualified buyer and gives you a realistic budget to shop within. Get started with our New York mortgage pre-approval process.

Pre-qualification is a quick, initial estimate of how much you might be able to borrow based on unverified financial numbers you provide. Pre-approval, however, is a formal step where our originators verify your actual income, assets, and credit to issue an official letter. In New York’s competitive housing market, sellers expect a formal pre-approval letter to take your offer seriously.

Yes. FHA, USDA, and HomeReady/Home Possible loans are popular options for first-time buyers with lower down payments or credit scores. Contact us to find out which programs you qualify for.

An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs these loans, lenders can offer them to borrowers with lower credit scores and smaller down payments than conventional loans require. FHA loans are popular with first-time buyers. Learn more about FHA loans at Maple Tree Funding.

To qualify for an FHA loan, you generally need a credit score of at least 580 with a 3.5% down payment. You must also have a steady employment history and the property must be your primary residence. The home must meet FHA appraisal requirements.

FHA appraisals are more stringent than conventional appraisals. The appraiser checks not only value but also the property’s condition. Common issues that must be repaired before FHA financing can be approved include peeling paint, broken windows, damaged roofing, missing handrails, and certain structural defects. Read more about FHA, VA, and USDA appraisal requirements.

Yes. FHA loans require both an upfront mortgage insurance premium (MIP), typically 1.75% of the loan amount, usually rolled into the loan, and an annual MIP paid monthly. Unlike PMI on conventional loans, FHA MIP generally lasts the life of the loan. For many borrowers, refinancing into a conventional loan once they’ve built equity is a strategy to eliminate it. Please note—FHA MIP terms are set by the U.S. Department of Housing and Urban Development and are subject to change; consult your loan originator for current rates and duration requirements.

A VA loan is a mortgage benefit available to eligible veterans, active-duty service members, and surviving spouses, guaranteed by the U.S. Department of Veterans Affairs. VA loans typically require no down payment, no PMI, and offer competitive interest rates. Maple Tree Funding has Certified Veterans Lending Specialists on staff. Learn more about VA home loans.

Eligibility is based on military service. Generally, you qualify if you served 90 consecutive days of active service during wartime, 181 days during peacetime, more than six years in the National Guard or Reserves, or are the surviving spouse of an eligible service member or veteran. You’ll need a Certificate of Eligibility (COE) to apply. Read our VA home loan FAQs for more detail.

No. One of the biggest benefits of a VA loan is that eligible borrowers can purchase a home with zero down payment and no PMI. There is a VA funding fee, which varies based on service history and down payment amount, but it can be rolled into the loan.

VA appraisals assess both the property’s value and its condition, ensuring it meets the VA’s Minimum Property Requirements (MPRs). Issues that typically need to be resolved include inadequate heating systems, roofing problems, unsafe electrical systems, and water or structural issues. Learn more about VA appraisal requirements.

A USDA loan is a government-backed mortgage for eligible rural and suburban homebuyers, guaranteed by the U.S. Department of Agriculture. Like VA loans, USDA loans require no down payment and offer low interest rates. They are income-limited and location-specific. Learn more about USDA loans at Maple Tree Funding.

Not necessarily rural—many suburban areas of Upstate New York qualify for USDA financing. Eligibility is determined by USDA property maps. Many towns in Warren, Washington, and Saratoga counties qualify. Contact us and we can check whether a specific property is in an eligible area.

USDA loans are designed for low-to-moderate income households. Income limits vary by county and household size. In most Upstate New York counties, the limit for a household of 1–4 is typically around $110,000–$120,000, though this changes periodically. Contact us for the most current figures for your specific county.

USDA appraisals evaluate value and property condition similarly to FHA. The home must be structurally sound, safe, and sanitary. Issues like peeling paint, damaged roofing, and certain mechanical system deficiencies typically need to be addressed before closing. Read more about USDA appraisal requirements.

Refinancing makes sense when you can secure a meaningfully lower interest rate, reduce your loan term, switch from an adjustable to a fixed rate, or tap equity for a major expense. A common benchmark is a rate reduction of at least 0.5–1%, but every situation is different. Our team can run the numbers for you. Learn more about refinancing with Maple Tree Funding.

Cash-out refinancing replaces your existing mortgage with a new, larger loan and gives you the difference in cash. It lets you tap your home equity for home improvements, debt consolidation, education expenses, or other needs. Your new loan will have a higher balance, so it’s important to weigh the costs. Learn more about cash-out refinancing.

Yes. Refinancing after divorce is a common way to remove one spouse’s name from the mortgage and the deed, allowing the spouse who keeps the home to take sole ownership. It requires qualifying for the loan on your own income and credit. Learn more about refinancing after a divorce.

A refinance typically takes 14–45 days from application to closing, similar to a purchase. The timeline depends on appraisal scheduling, document turnaround, and loan complexity. Our team moves quickly to minimize the time you’re in the process.

Yes — refinances have closing costs similar to a purchase, typically 2%–5% of the loan amount. Some lenders offer “no-closing-cost” refinances where the costs are rolled into the loan balance or offset by a slightly higher rate. We’ll walk you through the break-even analysis so you understand exactly when the refi pays off.