Frequently Asked Questions

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1. What’s the biggest mistake buyers make right now?
A: Waiting for interest rates to drop. The smart move is to buy when you find the right home and refinance when rates improve. Timing the market rarely works — owning the home does.

2. What’s the difference between a mortgage banker and a broker?
A: Bankers sell their own rates. I’m a broker — I shop over 280 lenders to find the best rate, program, and fit for your situation.

3. How much down payment do I really need?
A: Some programs allow zero down (like USDA and VA), and many first-time buyer programs offer down payment assistance. You don’t always need 20%. FHA requires 3.5% minimum while convention loan programs require 3% if you've not owned a home in the past 3 years or 5% if you've had ownership in the most recent 3 years.

4. What’s a DSCR loan, and why do investors love it?
A: DSCR stands for Debt Service Coverage Ratio. It’s based on the property’s rental income — not your personal income. Perfect for short-term rental investors. Much less paperwork involved since we won't need items like tax returns and income statements.

5. How can a self-employed borrower qualify for a home loan?
A: Bank statement loans use deposits instead of tax returns to prove income. Great for entrepreneurs who write off expenses but still have strong cash flow. This allows you to bypass using the income reported on your tax returns since most entrepreneurs take advantage of write offs which often lower their taxable income a great deal. Bank statement loans look at your actual cash flow, deposits.

6. What’s the best way to lower my rate without paying points?
A: Ask about a 2-1 buydown. It temporarily lowers your rate for the first two years — often paid by the seller or builder.

7. Should I pay off my debts before buying a home?
A: Not always. Some debt is okay — even helpful — when qualifying for a mortgage. Paying off accounts can sometimes hurt your credit score or deplete funds you’ll need for closing. Let’s look at your full financial picture before you make any big payoffs.

8. How do property taxes and insurance affect my monthly payment?
A: In Texas, property taxes and homeowners insurance are part of your total monthly payment (PITI). Coastal areas like Galveston County can have higher insurance premiums due to wind and flood coverage. I’ll estimate those costs upfront so there are no surprises and can recommend local insurance professionals who are aware of all the nuances related to insurance in our area.

9. Should I buy or wait until next year?
A: Waiting will cost you equity and opportunity. Home prices and rents rarely drop long-term — the key is to buy when it’s affordable for you, not when the headlines say it’s perfect. Waiting until next year may mean higher home prices - especially if rates fall.

10. What’s the advantage of working with a local lender in Crystal Beach?
A: I understand this market — flood zones, insurance challenges, and local comps — and I work face-to-face with the same realtors and builders you do. Reputation is essential to my success. I work with the local realtors, builders, insurance agents and title companies. If I do a poor job, I won't be in business for long.

11. What’s the difference between pre-qualified and pre-approved?
A: Pre-qualified means “probably can.” Pre-approved means “ready to go.” Sellers and agents take you seriously when you’re fully pre-approved. It is my duty to fully review your income documents and bank statements before I offer a pre-approval to you and your realtor.

12. Do you offer Reverse Mortgage programs?
A: Absolutely. I specialize in HECM Reverse Mortgages for homeowners 62 and older. A reverse mortgage lets you tap into your home’s equity without giving up ownership or adding a monthly mortgage payment. It can:

• Supplement retirement income 💰
• Eliminate existing mortgage payments 🏠
• Provide funds for home improvements or medical needs ❤️
• Offer peace of mind knowing you can stay in your home for life as long as taxes and insurance are paid

Every client’s situation is unique, so I personally walk you through the numbers and explain whether a HECM or a reverse-for-purchase loan makes sense for you.

13. What’s the best loan for a second home or beach rental?
A: It depends on use — second home if you stay there part-time, investment if you rent it out. DSCR or conventional second-home programs both work great. Interest rates are slightly higher for 2nd homes and investment properties than for a primary residence home loan.

14. What credit score do I need to qualify?
A: You can buy with scores as low as 580 on FHA and 600 on many conventional DPA programs. And I’ll help you with free credit improvement tips. Don't delay simply because you may have a low credit score. It's best to speak with me and review your credit issues together. We can build a roadmap to help you improve your scores to become qualified.

15. How much income do I need to buy a home?
A: Roughly 3x your monthly mortgage payment in gross income is a good rule of thumb — but every case is different and can depend on the loan program.

16. What’s a HELOC and when does it make sense?
A: A Home Equity Line of Credit gives you access to cash without touching your low-rate mortgage. Great for debt payoff or investment funding.

17. Can I buy a home while selling another?
A: Absolutely — bridge loans or HELOCs can help you tap equity in your current home to buy before you sell.

18. Do you offer construction or renovation loans?
A: Yes — one-time close construction loans let you finance the land, build, and convert to permanent financing in one step. I also offer traditional construction loans as well as renovation loans.

19. What are the closing costs in Texas?
A: Typically, 2–3% of the loan amount, including title, appraisal, and lender fees. I’ll give you a personalized cost breakdown before you commit.

20. What’s the benefit of using a broker for a VA loan?
A: I can shop multiple VA lenders — meaning faster approvals and lower rates than a single bank.

21. Can a Reverse Mortgage help retirees in Galveston County?
A: Yes — a HECM Reverse Mortgage can eliminate monthly payments and let homeowners tap equity safely, tax-free. There are even Reverse Mortgage programs for purchases.

22. How do I know what loan type is right for me?
A: We’ll compare options side-by-side — Conventional, FHA, VA, USDA, or Non-QM — so you can see which gives you the best payment and long-term advantage.

23. How can I increase my buying power without earning more income?
A: Paying off small debts, improving your credit score, or adding a co-borrower can increase your qualifying power dramatically — often without changing jobs or income.

24. What’s one thing every buyer should do today?
A: Schedule a strategy call. Even if you’re not ready now, you’ll get clarity on your numbers, budget, and best path forward.

25. How can I contact you to get started?
A: Visit ConsultWithBruce.com to schedule a loan consultation — or call me at 214-729-2947. Whether it’s your first home, your dream home, or your next investment, I’ll help you get there.