Frequently asked questions

A bank lends its own money. A mortgage broker takes your application, prepares your file, and submits it to a wholesale lender, which funds the loan. District Mortgage is a licensed mortgage broker (NMLS #2819502) and does not fund loans itself.

District Mortgage is licensed to originate residential mortgage loans in Washington, DC (mortgage broker license issued by the District of Columbia Department of Insurance, Securities and Banking, NMLS #2819502). The property securing the loan must be in DC.

The interest rate is what you pay on the loan balance. The APR (annual percentage rate) adds most lender fees and discount points to the rate and expresses the total as a yearly cost. Federal Regulation Z requires lenders to disclose the APR so you can compare loans on the same basis: compare one loan's APR with another loan's APR.

District Mortgage's pre-qualification uses a soft credit pull, which does not affect your credit score. You answer about 5 short questions about your loan goal, income and the property, and you see the programs and sample pricing that fit. A hard credit pull, which can lower your score by a few points, happens only when you decide to submit a full application.

A purchase loan closes 30 to 45 days after you submit a complete application. A refinance takes about 30 days. An FHA or VA streamline refinance can close in 2 to 3 weeks. Missing documents and appraisal disputes are the two things that delay a closing, so send documents as soon as they are requested.

For a salaried borrower: two years of W-2s or 1099s, pay stubs covering the most recent 30 days, and two months of bank and asset statements. Self-employed borrowers and borrowers with rental income also need two years of tax returns. After pre-qualification you get a checklist for your loan, and you can upload the documents through the borrower portal.

FHA, conventional (Fannie Mae and Freddie Mac), VA, jumbo, and specialty programs including HomeReady, Home Possible, FHA 203(k) renovation loans, and bank-statement loans for self-employed borrowers. District Mortgage also handles rate-and-term and cash-out refinances. If you are not sure which program fits, the pre-qualification call is where your loan officer sorts that out.

It depends on the program: FHA starts at 3.5% down, conventional at 3% down (HomeReady and Home Possible), and VA at 0% down for eligible service members and veterans. Putting 20% down on a conventional loan avoids mortgage insurance. A larger down payment also lowers the loan amount, so weigh it against the cash you want to keep in reserve.

No. The licensed loan officer who pre-qualifies you stays on your loan from the first call through closing. Your file is not handed to a processing team you have never spoken to.

District Mortgage is paid by the lender, not by you. You pay the standard third-party closing costs (appraisal, title, recording, taxes) and any discount points you choose to buy to lower your rate. Federal anti-steering rules (Regulation Z, 12 CFR 1026.36(e)) prohibit a loan originator from steering you to a loan that is not in your interest in order to earn more compensation.

A discount point costs 1% of the loan amount and lowers your interest rate. Whether to pay points depends on how long you will keep the loan. To find the break-even point, divide the cost of the points by the monthly payment reduction they buy; if you will keep the mortgage longer than that many months, the points pay for themselves. If you might sell or refinance sooner, they do not. Your loan officer runs the break-even calculation for your loan.

Click "Get pre-qualified" anywhere on the site and answer 5 questions (about 90 seconds). You will see the programs and sample pricing that fit, based on a soft credit pull. Your loan officer then emails or calls you to go through your options. There is no commitment and no hard credit pull until you decide to apply.