Top 10 Important Items Regarding Your Loan Process
We pride ourselves on our ability to get your home loan from start to finish as seamlessly as possible. Thanks to our digital mortgage process, we are able to consistently provide an excellent customer experience. In order to help us give you the best experience possible, there are a few key things to note on your behalf.
Communication and Support
It is important to keep an open dialogue with us from the start. The mortgage loan process has many parts, and it can be overwhelming—especially for a first-time borrower. If you ever have any questions or concerns, please do not hesitate to reach out to us!
Disclosure and Supporting Documents
After you are connected with your loan originator, you will receive a list of documents that we need from you in order to be approved for your loan via your secure online portal. We need these documents to certify your consent to move forward with your application, so please e-sign all disclosures and upload all requested documents within 24-72 hours of receipt,
A few notes:
- While these documents allow us to proceed with your loan, they are not official closing documents.
- There may be small differences between the initial disclosures to the final closing documents because of things like per day interest, tax or insurance updates, etc.
Any minor corrections to the application can be made easily and should not delay providing documentation.
The Appraisal Order (if needed)
The appraisal fee is a non-refundable fee independent of your home’s determined value or the ability of the loan to close. We will initiate the charge when you e-sign your loan disclosures. If your loan is declined, you are still responsible for the appraisal cost.
A licensed appraiser will contact you—or the contact point for the property—to set up an appointment. We suggest scheduling it ASAP. Anything beyond 5 days can delay the process.
Rate Lock or Floating
Once we lock in your rate, it cannot change based on the increase or decrease in the daily market rates. If you have elected to “float” the rate—or play the market instead of a rate lock period—we are required to lock the rate and close once we have a final approval.
Rate Lock Period
Your agreement to lock your rate is your commitment to proceed with the approval process with us. Your loan originator can no longer adjust the rate based on the movement of the market. Timing is important, so please stay engaged in the process with us.
Lock Extension Costs
Closing on your loan quickly is in both of our best interest; the last thing we want is to be forced to extend the rate lock period. Doing so would incur additional costs and unnecessarily delay the closing process. In the event of any delays from us or one of our vendors, we will cover the lock extension.
Extension costs will be your responsibility if there are delays with the following:
- Submitting requested documentation for approval
- Appraisal appeals
- Obtaining information from your employer
- Obtaining information from your HOA/Condo Association
- Obtaining IRS tax transcripts
- Delays caused by your realtor/seller and/or any attorney or title company you have requested to use for settlement/title work
Things That Can Change Your Pricing
Mortgage rates and pricing are based on risk factors. Changes in any of the following may cause a change in rate and/or fees:
- Appraised home value
- Credit score
- Loan amount
- Loan term
- Waiving escrows
- Loan to value ratio
- Loan program
- Rate lock period
- Property type
Property Taxes and Homeowner’s Insurance Due
If your taxes and/or homeowner’s insurance are due within 60 days of closing, they must be paid at or prior to closing, regardless of whether or not you have an escrow account.
“Assembly Line” System
We maximize efficiency by using an “assembly line” type of system. Different folks will be handling your loan at different stages of the process, but your primary contacts throughout the process will be your loan originator and processor.
You may be contacted by your processor and asked to provide additional documentation. If so, please respond to their request within 24 hours. Any delay can cause your loan to fall behind.
Financial Consistency on Your Part
While we are involved in the loan process, it is absolutely imperative that you stay away from making any changes to your credit accounts. Please avoid increasing credit card balances, opening or closing any credit accounts, changing jobs, or making home improvements. Maintaining financial consistency is key in allowing the process to continue as smoothly as possible.