Comprehensive Homebuyer Resources from Magic Mortgage

Curious about which loan is the best fit for you? Want to see how interest rates affect your monthly payment? Thinking about refinancing? Troy Lawrence and the Magic Mortgage team have the tools to help. Our mortgage calculators make it easy to explore your options and understand your financial outlook. Take your time, run the numbers, and when you're ready, Troy is here to guide you every step of the way.

Pre-Purchase

Did you know you can get pre-qualified for a loan before you start house hunting? Troy Lawrence and the Magic Mortgage team can pre-qualify you so you’ll know how much home you can afford. This gives you a clear budget and a strong position when making an offer. Once you’ve found the perfect home and a seller has accepted your offer, you’ll be ready to move forward with the application.

Application

Once you’ve chosen a home, Troy will guide you through the mortgage application process. At this stage, we’ll gather details about the property and review important financial information, including income, assets, and employment history. For a full list of required documents, check out our Buyer Application Checklist.

Processing

After submitting your application, our loan processors carefully review your file to ensure accuracy and completeness. We’ll also order a credit report to assess your credit history and score, as well as a home appraisal to confirm the property’s value.

Underwriting

During underwriting, a mortgage underwriter evaluates your financial profile to ensure you meet loan requirements. This step determines whether your loan will be approved. The underwriter may request additional documents or clarifications before issuing final loan approval.

Closing

Once your loan is approved, the closing process begins. Our team works closely with the title company and closing agents to prepare all necessary documents. You’ll receive final loan details and instructions before your scheduled closing date. At closing, you’ll sign paperwork, pay closing costs, and finalize the transaction—then, you’re officially a homeowner!

​What You’ll Need to Apply for a Mortgage with Troy Lawrence

When applying for a mortgage, it’s important to have the right information and documents ready. Below is a list of what you may need to provide during the application process.

Basic Information

• Full legal name, Social Security number, date of birth, and contact information
• Home and mailing addresses for the past two years
  
• Gross income, including salary, bonuses, commissions, and overtime
  
• Any additional income sources such as rental income, child support, alimony, or retirement benefits
  
• Employer details (name, address, and phone number) for the past two years
  
• Bank account balances, retirement funds, and other assets
  
• A list of current expenses, including rent/mortgage, credit card payments, and other obligations
  
• Details about the property being purchased, including address, year built, estimated down payment, and purchase price
  
• Estimated property taxes, homeowner’s insurance, and HOA dues (if applicable)
  

Documents You May Need

During the loan process, Troy and his team may request the following documents to verify your financial situation. Be prepared to provide additional information as needed.

• ​IRS Form 4506-T – Request for tax transcripts
  
• ​Pay stubs for the past 30 days, showing year-to-date income
  
• ​W-2 forms from the last two years
  
• ​Federal tax returns (IRS Form 1040) from the last two years
  
• A written explanation if you’ve had employment gaps in the last two years
  
• ​Bank statements from the last two months for all listed accounts
  

Credit History

• A written explanation for any late payments, collections, or judgments on your credit report
• Proof of source of funds for any large deposits outside of payroll or gift funds
  
• Court orders or legal documents for obligations such as child support or lawsuit judgments
• ​Bankruptcy or discharge papers if you’ve had a bankruptcy in the past
  
• Proof of payment history for utilities, phone, car insurance, or other regular expenses

If You're Self-Employed

• ​Personal and business tax returns for the last three years
  
• A year-to-date profit and loss statement
• ​A list of all business-related debts

Other Important Documents

• ​Driver’s license and Social Security card
  
• Homeowners insurance details, including agent name and contact information
  
• Signed purchase contract (if buying a home)
  

Should I buy or rent?

Buying a home is an investment in your future. When you rent, your monthly payment only covers temporary housing. As a homeowner, you can build equity over time, and your mortgage interest and property taxes may be tax-deductible. While owning a home does come with expenses like taxes, insurance, and maintenance, it also offers long-term financial benefits and potential appreciation in value.

​What is the first step in the homebuying process?

Your first step should be meeting with a mortgage expert like Troy Lawrence. He’ll walk you through your loan options, help you understand what you qualify for, and get you pre-approved so you can confidently start your home search. Pre-approval gives you a clear budget and makes your offer more competitive.

​What documents will I need when applying for a mortgage?

• Your last two pay stubs
  
• Tax returns from the past two years
  
• W-2 or 1099 forms
  
• A copy of your driver’s license
• Your Social Security number
  

Depending on your situation, additional documentation may be required, such as proof of rental income, self-employment financials, or court-ordered payments like child support.

How much money do I need to buy a home?

Homebuyers generally need funds for:

• ​Earnest money – A deposit to show sellers you’re serious about purchasing.
  
• ​Down payment – A percentage of the home price (as low as 3.5% with FHA loans, or even 0% for VA loans).
  
• ​Closing costs – Fees for processing the loan, usually 2-5% of the home price.
  

​How much will I need for a down payment?

It depends on the loan type.

• ​Conventional loans typically require 3-20% down.
  
• ​FHA loans require 3.5% down and allow gift funds from family.
  
• ​VA and USDA loans offer zero down payment for eligible buyers.

Sellers can sometimes cover closing costs if negotiated in the purchase agreement. Troy will help you explore programs that fit your financial situation.

​What should I expect at closing?

At closing, you’ll sign final paperwork, pay closing costs, and receive the keys to your new home. You’ll also need funds for prepaid expenses like property taxes and homeowners insurance. Troy and his team will provide a Loan Estimate (LE) so you know exactly what to expect before closing day.

​Why are Magic Mortgage rates competitive compared to big banks?

Unlike traditional banks with high overhead costs, Magic Mortgage works with multiple lenders to secure the best possible rates. We compare daily rate quotes to find the lowest option for you, helping you save money over the life of your loan.

​What is the difference between a fixed-rate and an adjustable-rate mortgage?

• ​Fixed-rate mortgage – Your interest rate and monthly payment stay the same for the life of the loan.
  
• ​Adjustable-rate mortgage (ARM) – Your rate starts lower but can change periodically, which may increase or decrease your monthly payment.

​What is a rate lock?

A rate lock guarantees your interest rate won’t change between your loan application and closing. If market rates go up, your locked rate remains the same, protecting you from unexpected increases.

​When should I lock my rate?

You can lock your rate at any time during the loan process. If you’re comfortable with the payment and terms, locking in early ensures stability. Troy can guide you on the best timing based on market trends.

​What is private mortgage insurance (PMI)?

PMI is required on conventional loans when you put down less than 20%. It protects the lender in case of default. PMI can be removed once your loan-to-value ratio reaches 80%, meaning you have at least 20% equity in your home.

​Do I need homeowners insurance at closing?

Yes, lenders require proof of homeowners insurance before closing. You’ll need an insurance binder and payment for your first year’s premium.

​What is the difference between homeowners insurance and mortgage insurance?

• ​Homeowners insurance protects your home and belongings from damage or loss.
  
• ​Mortgage insurance protects the lender if you default on the loan (only required on certain loans with low down payments).
  

​What is the Annual Percentage Rate (APR), and how is it different from the interest rate?

• ​Interest rate – The cost of borrowing the loan amount.
  
• ​APR – A broader measure that includes the interest rate plus lender fees, closing costs, and other expenses. APR helps you compare loan offers more accurately.

​What are mortgage points?

Mortgage points (also called discount points) allow you to pay an upfront fee at closing to lower your interest rate. One point typically costs 1% of the loan amount and reduces your interest rate, potentially saving you thousands over the life of the loan.

​What are pre-paid expenses in a mortgage?

Pre-paids include:

• ​Homeowners insurance (usually one year paid upfront)
  
• Property taxes (deposited into an escrow account)
  
• Pre-paid interest (covers interest from closing date to your first payment)

These costs are separate from your down payment and closing fees.

Some loan programs allow you to pay your own taxes and insurance, but many require an escrow account where these payments are included in your monthly mortgage bill. Troy can help determine what works best for you.

​Do I need a home inspection?

A home inspection isn’t required by lenders but is highly recommended to identify any potential issues before buying. Unlike an appraisal (which determines value), an inspection checks the condition of the home.

​Why choose Troy Lawrence and Magic Mortgage?

Financing a home is about more than just finding a great rate—it’s about working with someone you trust. Troy offers:

• ​Personalized service with expert guidance from start to finish
  
• ​Flexible loan options to fit your unique situation
  
• ​Competitive rates by shopping multiple lenders for the best deal
  
• ​A seamless, stress-free experience so you can focus on finding your dream home