Colton Lovett, Senior Loan Officer | NMLS #1480780
Clear by CMG Financial | NMLS #1820
Call/Text: 936-297-7393
Email: clovett@cmghomeloans.com
FAQ
Frequently Asked Questions
How much can I afford to borrow?
Your borrowing power depends on several factors: your income, debt-to-income ratio (DTI), credit score, down payment, and the type of loan you're applying for. Most lenders want your total monthly debt payments (including your new mortgage) to be less than 43-50% of your gross monthly income.
What credit score do I need to buy a home?
It depends on the loan type:
• Conventional loans: Minimum 620 (better rates at 680+)
• FHA loans: As low as 580 (or 500 with 10% down)
• VA loans: No official minimum, but most lenders prefer 580+
• USDA loans: Typically 640+
How much do I need for a down payment?
It depends on the loan type:
• Conventional loans: Minimum 620 (better rates at 680+)
• FHA loans: As low as 580 (or 500 with 10% down)
• VA loans: No official minimum, but most lenders prefer 580+
• USDA loans: Typically 640+
Credit challenges? I work with self-employed borrowers, first-time buyers, and people rebuilding credit every week. If your score isn't where it needs to be, I'll give you a clear roadmap to get there — usually 3-6 months of focused effort can make a huge difference.
What documents do I need to apply?
Here's what you'll need to get started:
Income Verification:
• Last 2 years of W-2s
• Last 2 months of pay stubs
• Last 2 years of tax returns (if self-employed)
Assets:
• Last 2 months of bank statements (all accounts)
• Retirement account statements (if using for down payment)
• Gift letter (if parents/family are helping with down payment)
Other:
• Government-issued ID (driver's license)
• Proof of rent or current mortgage payments
Self-employed or 1099? I specialize in bank statement loans and alternative documentation. You don't need perfect tax returns to qualify.
How long does it take to get pre-approved?
With Clear by CMG's digital platform, you can get pre-qualified in as little as 10 minutes and fully pre-approved in 24-48 hours (once I have all your documents).
Pre-qualified vs. Pre-approved:
• Pre-qualified = Quick estimate based on what you tell me (good for starting your home search)
• Pre-approved = Full credit check, income verification, and underwriter review (required to make competitive offers)
Most buyers start with pre-qualification, then upgrade to full pre-approval once they're serious about making an offer.
What's the difference between pre-qualification and pre-approval?
Pre-Qualification:
• Takes 10-15 minutes
• Based on what you tell me (no documents required yet)
• Gives you a ballpark budget
• Good for early-stage home shopping
Pre-Approval:
• Takes 24-48 hours
• Requires full documentation and credit check
• Underwriter reviews and approves your file
• Sellers take your offer seriously
• Required in competitive markets (especially in
Montgomery/Houston area)
My recommendation: Get pre-qualified today so you know your budget, then upgrade to full pre-approval before touring homes. This way you can move fast when you find the right property.
Can I buy a home if I'm self-employed?
Absolutely. I specialize in self-employed borrowers — contractors, real estate agents, small business owners, 1099 workers, and anyone who writes off expenses on their taxes.
Your options:
• Traditional loans: 2 years of tax returns (if your taxable income is strong)
• Bank statement loans: Use 12-24 months of business bank deposits instead of tax returns
• Asset depletion loans: Use savings/investments to qualify
• Stated income loans: Available for certain borrowers
The challenge: Most lenders only look at your net income (after write-offs), which can be low even if your business is profitable. I know how to structure your application to maximize your buying power.
How long does it take to close on a home?
Typical timeline: 30-45 days from accepted offer to closing
Faster closings: I've closed loans in 14-21 days for buyers with strong files and motivated sellers.
What affects timing:
• Your responsiveness (getting documents in quickly)
• Appraisal scheduling (usually 7-10 days)
• Underwriting workload (Clear by CMG moves faster than most lenders)
• Seller's timeline (some need more time to move out)
Tight deadline? Let me know upfront. If you need to close fast, I'll tell you if it's realistic and what we need to make it happen.
More Information
Fast approvals. Competitive rates. Local service backed by national lending power. Colton Lovett and Clear by CMG Financial help Montgomery families get home.
Colton Lovett | NMLS #1480780
Clear by CMG Financial | NMLS #1820
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