Frequently asked questions

Colt Lending is licensed to originate mortgage loans in Texas, Oklahoma, and Tennessee. If your situation involves another state, ask — rules and lender options can still be worth a quick conversation. See service areas in Oklahoma and Tennessee, plus Texas metros like Fort Worth, DFW, Austin, Leander, and Houston.

A mortgage broker shops multiple lenders on your behalf to match your goals, credit, and property to competitive programs. A single retail bank typically offers only its own products. Colt Lending operates as a wholesale broker under Edge Home Finance, LLC, with access to a wide lender panel — so you are comparing real options instead of taking what one balance sheet happens to offer that week. The full breakdown is in mortgage broker vs. bank, and you can verify any licensed originator through NMLS Consumer Access.

Start with a short application or schedule a call. I review income, assets, credit, and your timeline, then issue a pre-approval letter you can use with sellers and agents when you are ready to make an offer. The whole process usually takes 24 to 48 hours once I have your documents in hand. If you want to gauge readiness first, take the Do I Qualify quiz or homebuyer readiness quiz — no credit pull required. See how the process works end to end.

Compensation and fees depend on the loan program and lender. You receive a Loan Estimate early in the process that lists lender charges, third-party fees, and credits so you can compare options before you commit. As a broker I am paid through the lender on most files, which is why my retail rates often beat what banks quote walk-in clients. See licensing and disclosures for state-specific details.

Minimum scores vary by loan type and investor. Conventional usually wants 620+, FHA can go down to 580 (or 500 with 10% down), VA typically wants 620 (lender-dependent), USDA looks for 640. The best rates start at 740. If your score is below 620, do not assume you are out — we still have non-QM options and a plan for getting you to a stronger program in three to twelve months. You can pull your free annual report at AnnualCreditReport.com.

Yes. Whether you want a lower rate, shorter term, cash-out, or to drop mortgage insurance, we can model scenarios and compare lenders the same way we do for purchases. Take the refinance quiz to see if the math works for your specific situation, or read cash-out refinance in Texas for the Section 50(a)(6) rules that apply here.

A typical purchase from contract to close runs 25 to 35 days. A refinance usually takes 30 to 45 days. Both can move faster when your documents are organized and slower when something on the property side (title, appraisal, HOA) holds things up. I will give you a realistic timeline once I see your file — and I will tell you the truth, not the close date a sales script wants me to say. See the full 10-step breakdown on how it works.

For most W-2 borrowers: two years of W-2s, two recent pay stubs, two months of bank statements (every account that touches the down payment), photo ID, and your two most recent tax returns. Self-employed and 1099 borrowers need two years of personal and business tax returns plus year-to-date P&L. VA borrowers add a Certificate of Eligibility (COE) — easy to pull. I send a clean checklist once we know which loan program you are using.

A fixed-rate mortgage keeps the same interest rate for the entire loan term (15 or 30 years are most common). An adjustable-rate mortgage (ARM) — usually 5/6 or 7/6 — gives you a fixed rate for 5 or 7 years, then adjusts every 6 months based on a market index plus a margin. ARMs make sense when you plan to sell or refinance before the fixed period ends, or when the initial rate gap is meaningful. For most buyers I talk to, a 30-year fixed wins on simplicity and peace of mind.

It depends on the program. VA and USDA can be 0% down. FHA is 3.5% down (with a 580+ score). Conventional starts at 3% down for first-time buyers, 5% for repeat buyers. Jumbo usually wants 10-20%. Putting 20% down avoids PMI on conventional, but for most buyers in Texas I run the math on putting less down and investing the difference — sometimes the answer surprises people. First-time buyer guide for Texas walks through this in more detail.

Closing costs are the lender fees, third-party fees (appraisal, title, recording), and prepaid items (insurance, property taxes) you pay at closing on top of your down payment. They typically run 2% to 5% of the loan amount in Texas, Oklahoma, and Tennessee — title and recording fees vary by state and county. We can sometimes have the seller cover part of these (a seller concession), structure a lender credit, or roll them into the loan on a refinance.

Yes. Self-employed borrowers usually need two years of personal and business tax returns plus a year-to-date P&L. We average two years of net income (after deductions) to qualify you, which is why aggressive write-offs can hurt you on a mortgage. If your tax returns do not tell the full income story, we have bank statement loans, P&L-only loans, and DSCR loans for investment properties — that’s where the non-QM lender panel really matters.

PMI is private mortgage insurance — an extra monthly cost on conventional loans when you put less than 20% down. It protects the lender if you default. You avoid it by putting 20% down, refinancing once you reach 20% equity, or using a program that does not require it (VA loans, lender-paid PMI through a higher rate, or piggyback structures). FHA has its own version called MIP, which works differently — once it is on, it usually stays for the life of the loan.

Yes — first-time buyers are a big part of my book. I will walk you through the process step by step, explain what every form means, and connect you with state down payment assistance programs like TSAHC and TDHCA when they fit. If you want to read up before we talk, the first-time homebuyer guide for Texas is a solid place to start.

On a purchase, you have four options: the seller lowers the price, you bring extra cash to cover the gap, you renegotiate the contract, or you walk away (your appraisal contingency protects your earnest money). On a refinance, a low appraisal might cap your loan-to-value or kick you into a higher rate bucket. I have appealed appraisals successfully when comps were missed — sometimes the right comps fix the number.