We've made it easy for you. Just shopping for a loan, try our No Hassle pre-approval at the top of the home page or use the link on our pop up. Have a purchase contract or you're ready to get a full approval, then choose Apply Now on on our home page or the pop up on our website.
Depends on the type of approval you are seeking. Our "No Hassle" pre-approval can take you only minutes but since we don't have your income and asset documents it's not a full approval. It's plenty strong enough to determine how much payment and loan amount you qualify for and begin shopping for a home but before you sign a purchase contract you will need to ask your LOCAL Pro to proceed with a full approval which we can provide after we receive all your documents and the appraisal.
The pre-approval is the beginning step in the greater loan approval process. In this step we'll gather enough info to determine the best loan product for your scenario and quote you a rate and estimated fees. This is not an application, so there is no documentation collected from you. Your product, rate and fees quoted will depend on how accurately you answered the questions in our pre-approval form. Also, we won't collect your social security # at this point, so no credit report or credit inquiry on your credit history with our pre-approvals.
Some loans like streamline refinances and some Non-QM loans offer low doc options. If one of those meets your mortgage goals will recommend them to you. But as you might imagine, there's a lot of paperwork in a mortgage. That's mainly due to the amount of government regulation impacting mortgage lending. Also, many loan products are financially backed or insured by US government loan programs or agencies like Fannie Mae and Freddie Mac. All these loan products have disclosure and underwriting requirements but we'll make the process as smooth as possible and only ask for what's absolutely necessary to get your loan approved and closed.
No, unfortunately no doc loans were a major cause of the financial crisis of 2008. Called SISA, Stated Income and Stated Assets the only qualifications were checking the borrower's credit report and reviewing the appraisal. Remove the appraisal requirement and they were the closest mortgages ever came to the car loan industry. So getting approved for and closing your mortgage won't be anything like getting a car loan. But, we'll navigate you through the process and close you asap.
Local Mortgage Pros works constantly to update and exceed both industry standards and federal regulations governing handling of borrowers NPI, Non Public Information, especially sensitive information like social security numbers and income or asset documents. We implement strong encryption protocols such as AES-256, SSL/TLS and HTTPS. We use authentication protocols such as verifying users using passwords, PIN, biometrics, OTPs and tokens. We also implement authorization levels that grant or deny access to resources based on user identity and role. Last, we monitor, collect and analyze data to detect and prevent security incidents.
Anytime is a good time to ask a question, get help or start a mortgage with Local Mortgage Pros. That's why we've created our 24/7 chat and phone service. You might have a question in the evening or weekend so ask it then. No need to wait to our normal business hours. Our LOCAL Pros will adjust their schedule to help get from pre-approval to closing asap. Use our contact links on our homepage or our pop up on our website at localmortgage.ai
Many competitors will quote you rate and fees instead of providing you an LE. The often do this in the early stages when they have very little information, especially funds for down payment, income details or even knowing a correct debt to income ratio. Without this info a quote means nothing, it's not an LE which holds the lender accountable for quoting accurate fees. Worse your rate is not locked on a loan quote so what they quoted means nothing if rates change later that day or overnight. At LOCAL we encourage you to take your pre-approval which can be done in minutes and turn it into a full application and receive an LE.
A loan quote is typically a rate shopping step and doesn't carry much weight, as the rate is not locked and the borrower has not provided enough information and documentation to make any loan product, rate or fees quoted meaningful. The loan estimate also known as an LE is federally required three page document that the lender has to live up to the numbers quoted and does provide the borrower the option to lock their loan as well. The goal of the LE is to discourage originators from engaging in bait and switch.
Points are closing costs and part of lender fees in Section A of your LE, Loan Estimate. Either listed as discount or origination they increase your closing costs. They can be used to pay the lender for their origination services or in the case of discount they are charged to buy the rate down to a lower rate that is less profitable or a cost to the lender.
Per TRID a Loan Estimate is a three page document required by law to be delivered to the consumer within three days of an application. An application is considered given when the consumer aka borrower provides the following six pieces of information to a lender. These are name, income, social security, property address, estimated value of subject property and loan amount. Once all six are obtained by the lender the lender must put an LE in the mail within three business days. They can also deliver the LE electronically instead of by mail. Unlike a loan quote or rate and fees quote the LE holds the lender accountable with certain fee tolerances and reduces the risk of a bait-and-switch offer.
We suggest you save money and time and try our "No Hassle" pre-approval, it doesn't require us ordering your credit report so we don't charge you any upfront fees but we can still provide you a pre-underwriting approval including an evaluation of your assets, income and credit history with no credit inquiry. Just click one of our pre-approval links on our home page or the link on our pop up.
Once your ready to proceed with a full loan approval, we'll obtain your social security number and your form of payment so we can order credit reports from all three bureaus, employment verifications, appraisal and survey, if needed. Please keep in mind we only charge for the actual cost of these items.
Unfortunately no, at least not for a full approval. While your bank or credit card provided scores can be used for a pre-approval and estimating a rate quote, they aren't going to provide you the correct mid-score needed to most accurately quote your rate. As we've probably mentioned before, loans are heavily regulated by gov't controlled agencies and private bank investors and they require lenders to order an all three bureau mortgage credit report, aka tri-merge credit report directly from their credit service vendor to use in their final or full approvals. Lenders also need this tri-merge credit to be able to run their AUS, Automated Underwriting Systems, systems like DU, Desktop Underwriter and LPA, Loan Product Advisor.
Simply put, closing costs are the total amount of money you need to bring to closing. The lender fees are in Section A of your Loan Estimate (LE) and the only fees your lender can truly control. Everything else outside of Section A that's a closing cost like title, attorney, escrows, appraisal and survey is out of the Lender's control. But at LOCAL we are always looking for ways to help you reduce your closing costs by shopping for cheaper credit report vendors, surveyors, appraisers, home owner's insurance premiums, settlement services and attorneys. Our aim is to keep your closing costs as low as possible. That's another advantage of LOCAL, we have the best relationships in your local area.
PMI stands for Private Mortgage Insurance and it can be a monthly payment or a lump sum or paid by the lender. It's used to cover losses should a loan foreclose. For example, conforming loans like Fannie Mae and Freddie Mac will insure up to 80% Loan to Value or LTV that means a loan with say a 90% LTV leaves the investor exposed to covering 10% should it become necessary to foreclose since those two agencies will only cover up to 80% LTV. Some PMI is built into the rate, for example a Jumbo loan with no monthly or upfront PMI. The investor prices these loans to cover losses from foreclosures so there is no need to pay a lump sum at closing or monthly PMI.
Please don't, at least not until after the 6th payment was made. Why do we ask you to wait? To help keep rates we offer you and others as low as possible, because when a borrower pays off a loan, or a large portion of its balance within the the first 6 payments there are real losses to the servicer of the loan. When the servicer has a loan pay off early like this they will demand, per their agreement with the originating lender or broker, to repay their loss due to a borrower's EPO, Early Pay Off.
Therefore, if you intend to either pay off the loan early or pay down the principal balance in the first 9 payments or less, please make sure to let your LOCAL Pro know this during the application phase and they will navigate the best scenario or strategy for you.
An MBS is a Mortgage Backed Security. The MBS is a pool of mortgages grouped together by similar characteristics like loan product and rate range and sold into bonds promising a rate of return to the bond holders. MBS help keep mortgage rates low by allowing lenders to sell bonds to get back most of the money they lent to the borrowers and then use that money again to lend to new borrowers. This way they company's capital doesn't get tied up in servicing and waiting for loans to pay off to make new loans.
We offer all home loan types available. But just so you know, the major classifications or loan types are Conventional, Jumbo, Non-QM, FHA, VA and USDA. The best loan type for you depends on your financial situation and long-term goals.
We are a direct lender, which provides our borrowers a seamless and consistent experience because we are in control from pre-approval through to after closing. Unfortunately a broker isn't in control of when the loan closes. That's because they are a third party in the equation and have to rely on the direct lender, aka mortgage banker to lock, disclose, underwrite, close and fund their loans. So you the broker cannot directly control turn times and service level. At LOCAL we have control over your loan from pre-qual through closing and after.
LOCAL sells your loan within a couple of weeks of closing to a reputable investor and before the first payment is due. In some situations you will make your first or even second payment to us but typically your first payment will be to the investor. Servicing of loans is an extra cost and can be quite considerable especially for non-depository banks or lenders like us. Our current strategy is to provide you the most competitive price possible and by selling versus servicing we are able to achieve that goal for you.
Local Mortgage Pros is the Dba for Guaranty Federal Mortgage LLC a company with over 20 years history in mortgage lending. This brand helps us recruit local mortgage professionals in your area and develop relationships with the best local real estate agents and mortgage services like appraisers, surveyors, attorneys and title companies.
Local Mortgage Pros is expanding rapidly, adding states as we add Local Pros. We encourage you to use Find Your Local to see if we can help you in your state. Please be sure to fill out the form as we are using this to determine which states we need to focus on licensing first. Go to our home page or use the pop up to Find Your Local.
LOCAL can help with that, not only will we find you the local mortgage pro in your area but we can introduce you to a real estate pro in your area too. Our Local Pros are partnering with the best real estate services in your area and working with the best agents is one of our strengths. We can also recommend the best title companies in your area too. Use Find Your Local on our home page or the pop up to get put in touch with one of our partnering agents.
Local will provide you with 5-star service from a local mortgage pro in your area. Not only are they connected to the best local real estate services in your area but they provide highly competitive mortgage rates and below the national average. Plus we can close your loan in 10 business days or less. What would you'd prefer, an established local pro living and working in your area or someone in a city or state far away? Start your pre-approval by clicking our link on our home page or our pop up.
Yes, please go to our home page and use the pre-approval link or apply now to get started. You can also use the pop up to get to these links.
We call them LOCAL Pros and it's easy to speak to one right away. You can use Find Your Local link on the top of our home page or the one on our pop up. You can also go to the Contact Us on our home page and select phone or chat and ask for a LOCAL Pro or Loan Officer to help you.
Just click on our chat option or call us options our home page or on the pop up and well ask you a few question to get you the right person.
Yes, the great thing about Local Mortgage Pros is our loan originators work in your area. Unlike many other lenders, with us you could schedule a face to face meeting with a local pro in your area if you like. It's not uncommon for our Local Pros to attend your closing. Always nice to have someone literally in your corner from pre-approval through closing and beyond.
FHA allows underwriters to use what's called alternative credit. This requires the borrower to provide 12 or more consecutive months records of paying rent, utilities and insurance. The Lender will still order a credit report showing no credit history and confirming no bad credit history but it's the closest product available to no credit report. Other than that all other products will need a credit report and credit history to qualify.
Yes, we work with the best real estate agents in your area and we can put you in touch with one of them. Just use the chat or Find My Local link on our pop up or go to the top of our home page and use Find Your Local.
Probably the number one question asked when shopping for a loan. The short answer, a VA loan has the lowest rate. And this is why a VA scenario is frequently used for advertising or teaser rate quotes. But let's be real, the rate your'e quoted is based on a lot of factors besides your credit score. That's why it's so important to do a thorough job on a pre-approval as well as later on your application.
You do, but most borrowers believe it's just their credit score but in reality it's just 1 of 7 factors which are: 1) Pricing Strategy 2) Credit mid-score 3) Loan Product, 4) Loan Purpose, 5) Occupancy 6) Loan Amount and 7) LTV, Loan to Value. Take strategy for example, do you want to buy down your rate to get a below market rate? Or would you prefer to save upfront with a low to no closing costs loan? Some of these pricing criteria are called LLPAs, Loan Level Price Adjustors and investors apply them when offering to buy any lender's loans. You can search Fannie Mae LLPAs on the internet to see how different loan scenarios are priced.
If anyone quotes you rate and they haven't completed your application, obtained all three credit bureau scores for each borrower, reviewed all documents supporting the income and assets used on your application and run your application thru an Automated Underwriting System, AUS like DU, Desktop Underwriter then it's just an educated guess at best. Plus the rate quote means nothing if they haven't locked it, as rates can change throughout the day and drastically overnight when market conditions deteriorate.
Yes, we do our best to meet or beat any competing offer, even if the other lender had the advantage of lower rates when they locked you. But if their quote is not locked we'll need you to get a quote from them the same day we quote you, this makes the comparison accurate. We'll need you to complete our no hassle pre-approval first so we can accurately quote you. Please use the link on our home page or our website pop up to get strated.
If you want a lower rate that's below market, meaning that rate costs the lender when they sell your loan to investors, then you will need to evaluate buying discount points versus not buying them. You'll need to consider how long are you staying in your home and a break-even point when the monthly savings in the lower rate have paid for the cost of the points. If you're not going to be moving for a number of years or refinancing in the near future then they can be worth it. Also, if it's a purchase and the seller concessions can cover them, then they it's a great strategy. Your LOCAL Pro can provide you different scenarios so you can compare and decide.
A 2-1 buy down is prepaying interest to have a 2% lower than note rate payment the first year and a 1% lower than note rate payment the second year. The difference in interest for both years is collected at closing using an addendum to the note. This lump sum amount of pre-paid interest is delivered to the servicer of the note so they still earn the note rate. This is a very common scenario with home builders to help maintain their sales price and comps by avoiding price reductions. While they can be done on refinances they are more popular with purchases because the seller is covering the cost.
Origination charges are in section A of your LE, Loan Estimate. And like a real estate agent's percent commission, it's how the Lender earns income. However, if you choose a slightly higher right they might not charge any origination points. Or they might provide a lender credit that covers or reduces them. Work with your Local Pro to choose a pricing scenario that best fits your goals, with or without origination points.
It's a guarantee for specified period that your rate won't change during the processing of your loan and prior to you closing. The market might worsen significantly but you'd still keep the rate you locked. Lock periods are typically 30, 45 and 60 days. A float is the opposite of a lock and allows you to put off locking your loan until you're ready get your closing disclosure and schedule your closing.
Our philosophy is if you like the payment quoted then lock it and don't look back. Unless you're a gambler. It's been our experience over the years that borrowers have more to lose when pursuing a floating strategy. Here's one example, you're floating and during your approval process it's determined you barely meet the DTI "Debt to Income" ratio for the loan product you chose. Rates go up rapidly prior to your closing and they don't come back down enough prior to your closing. You then spend more money in closing costs for points to buy down the rate so your DTI qualifies.
Typically our loans are closing from lock date to docs at title in ten business days. During short time frames, a week or two, there's rarely significant movement. However on longer locks like 45 and 60 days used on some purchase scenarios you can see enough movement in markets to warrant what's referred to as a float down. Please reach out to your Mortgage Pro and discuss, and they will do whatever they can to negotiate a lower rate without you having to pay any points.
As soon as you prefer, especially if the payment works for you. However, you'll need a subject property address and have completed the pre-approval process before your local pro can properly identify the product and rate that best meets your goals and scenario. If you float after your pre-approval and through the approval process until clear to close you'll need to lock at least a minimum of 3 days prior to closing. Our recommendation is once you complete your pre-approval and your happy with the payment then lock and don't look back. More often than not borrowers regret floating.
Ultimately you choose your rate not us, we just present you scenarios for you to choose. You could choose to pay points for a below market rate or choose a slightly higher rate and get lender concessions to help pay for title, origination costs and escrows. There are advantages to both strategies and we can help you with that. You can also shop between different lenders for different offers but rate is most influenced by your specific scenario and loan level price adjustments, known as LLPAs that are applied by investors like Fannie Mae, Freddie Mac and government loan programs.
Loan Level Pricing Adjustments, they are charges to the lender based on LTV, FICO, Loan Purpose, Occupancy as shown in link below but also there are different charges applied to loan amount, state and other criteria. These heavily influence the rate you choose with your lender. You can visit Fanniemae.com to learn more by searching LLPAs.
Yes, but the question is who'll cover the cost of the extension? The vast majority of extensions are due to factors beyond LOCAL's control. For example, say the seller had to extend the contract because the house wasn't ready to move in, then we'd work with you to get the seller to cover the cost of the extension with a seller concession. If the delay was due to waiting on the borrower and that caused the lock to expire prior to closing then the cost would be passed on to the borrower. But if the delay was due to LOCAL we'll pick up the cost of the extension.
If your lock expires prior to closing your loan and it was not extended we have to re-lock your loan. The cost of the re-lock is passed on to the borrower unless it's directly attributable to Local Mortgage Pros. Re-locks rarely happen as we take loans from pre-approval to full approval and even closing in 10 business days or faster. However, there are circumstance beyond our control like completing repairs and final inspections on the subject property that can delay a loan past lock expiration or even past the maximum number of extensions available. If a purchase, the sellers often picks up the cost of these when the delay was due to them. Your Local Pro well help you pick the right lock strategy based on you closing date and other factors.
Typically our loans are closing from lock date to docs at title in ten business days. During that time there is rarely any significant movement. However on longer locks like 45 and 60 days there can be enough movement to warrant what's referred to as a float down. Please reach out to your Mortgage Pro and discuss, they will work with our lock desk to negotiate a lower rate without you having to pay any points.
If the market has moved significantly contact your Mortgage Pro to explore a float down. If your loan is a purchase you must request your float down no less than seven work days prior to your contract closing date. We need this time to work on any float down request and determine the new rate, update your loan approval with the new rate and send you the federally required updated disclosures at least three days prior to your loan closing. If it's a refi you can request a float down at anytime but we'll still need the seven days do the same steps and this could delay your closing up to seven working days. If a float down delays enough to cause an extension fee then LOCAL is not responsible for covering the cost of that extension.
Short answer is yes? But we've all heard the commercials, when banks compete, you win! But is that the reality? Banks have much higher overhead costs than individual originators or brokers and not necessarily better rates so most of the time our LOCAL Pros can better the banks when quoting you a mortgage, both in fees and rate.
Not all loans and borrowers are the same, neither are lenders that provide mortgage services. FICO, DTI, LTV, Occupancy, Loan Purpose, Loan Product and Borrower's goals all have impact on pricing the loan but so does the lender's overhead and the area of the country the loan is originated i.e. higher cost of living etc.
Many reasons cause the differences but first and foremost is markets. Rates change daily and even during the same day because the investors who buy mortgages bid on them just like traders have bid and ask prices for stocks. Also, one lender may quote a program you actually qualify for and the other quotes one you don't but has a better rate. This happens a lot so make sure everything is the same when comparing quotes. Make sure the FICO, LTV, DTI, Occupancy, Loan Purpose, Loan Product and and strategy i.e. lowest rate, lowest cash to close are all the same as these can significantly impact the rate quoted.
A fixed-rate mortgage keeps the same interest rate and monthly payment for the life of the loan. An ARM, Adjustable Rate Mortgage starts with a lower rate that can change usually after a fixed period but has caps for how much it can adjust each year after fixed period and maximum or cap for life of loan. ARMs can save you money upfront but carry more long-term risk if rates rise.
Yes we have multiple approved DPAs, Down Payment Assistance programs available to borrowers. If you're not able to pay anything for down payment and don't have someone providing you a gift, then these are a great alternative. You can use Find My Local or our Pre-Approval links on our home page to either talk to one of our LOCAL Pros or get started seeing if you qualify.
Yes and No, conforming loans are conventional loans but not all conventional loans are conforming. Conforming means the loans conform to Fannie Mae and Freddie Mac loan limits and underwriting guidelines. Conventional loans like Jumbos, allow higher loan amounts than conforming loans and use the banks internal underwriting guidelines instead of agency guidelines. These loans can offer alternatives to Fannie Mae and Freddie Mac especially for larger loan amounts.
VA loans are home loans with more lenient guidelines like 100% financing and favorable terms for active military service members, veterans, and eligible military spouses. Because VA loans are backed in part by the federal government, lenders and banks are able to offer reduced interest rates.
If your last VA loan was a streamline, known as an IRRRL or Interest Rate Reduction Refinance Loan then 210 days must have passed since closing on that loan and first payment made on that loan and no less than 6 payments made. If it's a cash out refinance then at least 6 payments made on any VA loan. Any VA refinance needs to demonstrate a financial benefit to the borrower.
No appraisal or income requirements, faster processing and underwriting and lowering your interest rate are why many Vets choose an IRRRL when they want to refinance their VA loan. However, you can't take equity out of your home for remodels, paying credit cards off or school etc with an IRRRL.
A cash-out refinance or debt consolidation loan lets you leverage your home's equity to access cash to pay off debts and or do home improvements, pay for college or get cash out for other purposes even buying an investment property. There are plenty of different strategies you can employ and it just depends on your scenario and overall strategy. Consolidating your debt is popular because the interest rates for mortgages are typically lower than interest rates charged for debts such as credit cards and personal loans.
FHA loans are loans insured by the federal government and managed by HUD. They provide more affordable down payment alternatives, competitive rate options, and more lenient qualifying credit score standards. Because of this, FHA loans are particularly appealing to first time homebuyers and any other borrowers who have lower credit scores and/or less money set aside for down payments and closing costs. They are also very popular under HUD approved DPA, Down Payment Assistance programs that allow borrower to have the DPA cover the 3.5% minimum down payment required on FHA loans.
A simplified process that makes it much quicker as there is a lot less processing and underwriting on these than a typical FHA loan. Two types, non credit qualifying and credit qualifying. The non credit qualifying allows you to close without an appraisal, income documentation or credit check. The credit qualifying version will ask for income verification and credit report but you can skip the cost and time needed for an appraisal.
Yes, all you need to do is meet the conventional loan lending guidelines whether that is a conforming Fannie Mae or Freddie Mac or say Jumbo loan product. Many borrowers with FHA loans choose this option to stop paying mortgage insurance once their equity is enough to refinance without PMI, Private Mortgage Insurance as it's called for conventional and conforming loans.
A Texas cash-out, also known as a Section 50(a)(6) loan, enables homeowners in Texas to cash out on their mortgage if a primary residence in Texas. This state law limits the loan amount on these transactions to a maximum of 80% LTV and requires the borrower receive a letter detailing this transaction at least 12 days prior to closing the loan. The cash from these transactions can be utilized for anything from home improvements and educational expenses to debt consolidation. If the property is an investment or second home the Texas law limiting LTV does not apply. Please note that gov't loans like FHA, VA and USDA can't be used for Texas Cash Out loans either because these programs don't allow cash out or in the case of VA the state law does not allow it.
You can close on or after the first anniversary date of your closing on your Texas Cash Out loan. So basically need to wait a year before you can do another cash out loan on rate and term refinance your primary residence in Texas if you did a previous cash out on it.
A Texas Cash Out loan can only have a maximum of 2% of the loan amount in closing costs. But there are exceptions, the title insurance, appraisal, survey, attorney fees, escrows and other typical third party fees are not included in the 2% calculation. So like any competing offers you'll want to focus on the fees quoted in Section A of your LE, Loan Estimate as those are the fees the lender can actually control.
Yes, changes to Texas law in 2017 now allow homeowners to rate and term only (no cash out) their primary residence which they had done a previous Texas Cash Out or home equity loan under Section 50(a)(6) loan. They have to sign a document that they are removing their Section 50(a)(6) protections and it must have been a year or more since they closed on their Texas Cash Out loan.
A Jumbo loan product has some overlays to conforming loan underwriting guidelines. The most important is reserves, that is how many months of payments you can make without an income. These reserves can come from money in checking, savings or retirement funds or similar cash equivalent investments that were not used in purchasing the home. Another overlay is lower debt to income ratios and higher FICO scores needed to qualify. They also restrict the LTV by requiring a larger down payment or more equity, often capping LTV at 85% to 90%.
Jumbo loans are loan amounts that exceed the limits of Fannie Mae and Freddie Mac as well as government loan products like FHA. To see the conforming loan amount maximum go to Fannie Mae's website fanniemae.com and search for loan limits.
DPA means Down Payment Assistance and these programs used to be very common prior to the financial crisis of 2008. As part of HUD's focus on increasing home ownership it was easy to get DPA funds. The problem is most of the funds needed from the down and closing costs were coming from the seller, typically a builder and this meant they simply inflated the price of the home to cover the DPA costs. After the financial crisis these programs came under scrutiny and reforms were made making it to find any money available for DPAs. They are still available and we have multiple investors providing them. Please use our Pre-Approval or Find Your Local links on our home page or the website pop up to get more information.
Owner occupied also means your primary residence. It's the house you live in the majority of the year, the home you have your homestead tax discount applied to it and the address you receive your mail and use for identification like a driver's license or passport. It's the home you live in the majority of they year. Underwriters are very careful when reviewing primary residence loans as FHFA the governing body over Fannie Mae and Freddie Mac has uncovered an alarming number of occupancy fraud in recent years. If you have a unique living situation it's best to share your scenario with your Local Mortgage Pro.
This occurs when a borrower claims the subject property to be their primary residence to obtain the lower rates available for owner occupied properties and never moves into the property. Lenders require borrowers at closing to sign an acknowledgement that they will take residence in the subject property within 60 days of closing. In addition, the borrowers sign their final application and closing disclosure which represent the transaction as owner occupied. When the don't move in or instead rent it out this is when the fraud occurs. In the event a lender determines the borrower defrauded them they can exercise an acceleration clause in the mortgage note. This clause allows lenders to force the borrower to pay off, refinance or sell their home or face lender foreclosure.
Earnest Money is the money you pay at the time of signing a sales contract with a seller and held by the title company or attorney. If you do not meet the terms of the sales contract you may forfeit the Earnest Money amount to the seller. Be sure to understand how the terms of the contract impact you and if you do not have an agent please allow us to recommend a local real estate pro to you. We work closely with the best agents in your area and as team we look out for our client's best interests.
When purchasing a home your family members and others who meet donor guidelines can provide you money to pay for closing costs and or down payment when purchasing a primary residence. Their is no gift funds allowed on investment properties. The donor must sign a gift letter, stating that the funds are not a loan and that letter is approved by the lender for review. This is different than a gift of equity which occurs when the donor is selling their home to the buyer. Those also need a gift letter and be approved by the lender. For more information go to Fannie Mae's guidelines on fanniemae.com and search personal gifts.
When the borrower is purchasing their home from a family member or approved donor the seller can gift equity in the sale of their home to be used by the borrower for both down payment and closing costs. The amount of that gift is deducted from the seller's proceeds at closing. Like gift funds their is a donor gift letter and the money can't be a loan or expected to be paid back. Do not confuse gift funds with interested party contributions which come from seller, agent or lender.
Interested party contributions aka IPCs are when an interested party like the agent, lender or seller give monies to the buyer to cover their closing costs. They are not allowed for down payment. These monies are limited by the loan programs and depend on the LTV or amount of down payment made by the borrower. Typically the higher the down payment the more the interested party is allowed to give towards closing costs. The most common IPC is Seller Concessions go to fanniemae.com and search interested party contributions to learn more.
These are monies the seller agrees to contribute at closing to go towards borrower closing costs. Also called IPCs or interested party contributions they are limited by the down payment percent. For example, Fannie Mae allows max 3% of the lower of sales price or appraised value when the LTV/CLTV is greater than 90%. So on a $500,000 sales price with a $520,000 appraised value the max the seller could contribute toward closing costs would be $15,000. None of this can be used for down payment or borrower's reserves. For more information go to Fannie Mae's seller guide on fanneime.com and search interested party contributions.
Get approved for a loan. Don't do things backwards and sign a contract then work on getting approved for a mortgage. You'll want to know the exact amount you can qualify for and what the true PITIA monthly payment is you can afford combined with any revolving or installment debt you have. PITIA is the monthly total housing payment and consists of principal, interest, taxes, insurance and home owner's association dues. Just getting a quote or pre-approval isn't enough. You need a full approval which takes a complete application and reviewing your income and asset documents.
On conforming loans like Fannie Mae and Freddie Mac you can have up to 10 financed properties. But on Non-QM products like DSCR you can finance more and with reduced documentation compared to conforming loans.
$0 dollars with a down payment assistance program and interested party contributions or seller concessions to cover your closing costs. Let your Local Mortgage Pro structure a no down payment, no closing cost loan for you. Also, VA and USDA allow borrowers to finance 100% of the lower of purchase price or appraised value. And if structured correctly or with seller concessions you can also get into the house without any money paid at closing.
The absolute best time to start shopping for a home is after you have received what's called a TBD approval, the subject property address is to be determined. A TBD allows you to complete the rest of the application, submit all your documents and have underwriting approve with address TBD. It's not a final approval because the TBD means the address and appraised value needs to be determined. But you don't risk your earnest money deposits because you're fully credit and income approved and you truly know how much of a house payment you qualify for. At minimum you will want to complete our no hassle pre-approval before you start shopping. It can be found at the top of our home page or on our website pop up.
In our experience having a great agent in your corner before you go shopping for a home is a high priority. They know the area your looking for a home and can help you navigate and negotiate on the best home for you. Your LOCAL Pro partners with the best agents in your area, so let us help you find one if you aren't already working with one. The agent can also help you with estimating appraised value of any homes your looking at as they have access to recent comparable sales data from sold listings.
A Buyer's agreement is a contract between the real estate agent and the buyer shopping for a home. It typically spells out the duration, agent responsibilities, agent compensation as well as what commitments the buyer makes to the agent such as exclusivity.
This is when the seller lends the money to the borrower to purchase the subject property. This kind of mortgage doesn't fall under the classification of a qualified mortgage and thus doesn't have to meet the federal laws defining and regulating qualified mortgages. They are typically used by builders when the borrower doesn't qualify for government or conventional mortgage product and tend to have much higher rates, fees and pre-payment penalties.
This is common with investors who buy homes at a lower than market value and then quickly, typically in less than 90 days sell it to buyer for market or above market without making any significant improvements to the home. Flipping is very common in areas with rapidly increasing home prices.
Minimum 6 months and 6 payments made if you used a conforming, government or conventional mortgage product to purchase your home. This prevents what's called an EPO, contact your LOCAL Pro to learn more on the impact EPOs have on consumers and lenders. But, if you purchased your home with owner financing or with a construction loan then refinance as soon as you like. Use Find Your Local or Pre-Approval at the top of our home page or the link in our website pop up to get started or in touch with a LOCAL Pro.
If we did your last loan for you and rates drop significantly we will cover your closing costs such as all lender fees and title fees so you don't have to roll them into your loan amount or bring to closing. Any taxes and insurance as well as paying down principal are the borrower's responsibility. Contact your LOCAL Pro to find out more.
Yes, almost all refinance scenarios allow it, unless your loan amount exceeds the loan products max LTV, Loan to Value. For example, you're appraisal comes in at $500,000 and you price your loan at 90% LTV to get a better price than 95%. but if you roll in your closing costs instead of financing $450,000 or 90% you would need a loan amount of $461,000 or 92.2% LTV so you'd either need to re-price your loan with the new LTV or consider bringing some money to closing to keep the LTV at 90%. There are many ways to structure rolling in closing costs so make sure to use our pop up link to Find Your Local or contact your Local Pro to evaluate your options.
Sure, but keep in mind mortgage interest is paid in arrears, meaning if your payment is on the 1st of the month you are paying the interest accrued during the previous month. So at closing any interest accrued during the skipped payment will be collected starting from the day of closing until your first payment date. Please reach out to your Local Pro to discuss this option or get in contact with us using Find Your Local on our home page or the pop up link on our website.
Yes, due to less documentation, especially streamline options that don't require credit report, income or appraisal. But even a credit qualify refinance is faster than a purchase because in some situations an appraisal is not required and often the borrower has a copy of their previous survey. Plus, there is no time spent waiting on inspectors, negotiating with a seller or waiting on a contract closing date.
At LOCAL our standard purchase approval time, that's time from pre-approval to us ready to send docs to your closing is 10 business days. However, on some refinances it's 7 days which per TRID, TILA-RESPA Integrated Disclosures is the fastest you can legally close on a mortgage.
Yes, it's common for borrowers to roll in closing costs and escrows. Later when they get a refund on their previous escrow account, they either use it to pay down their principal balance on their new loan or they put it in the bank. And, if they want to do a cash out loan they can get cash at closing to use for things like remodels, investment properties, paying down debts and school or college. Get in touch with on of our LOCAL Pros so you can determine the best refi strategy for you. Please go to our home page or use the website pop up for links to get in touch with a Pro.
No because the Texas 50(a)(6) law which govern's Texas borrowers using mortgages to cash out on their primary residence's equity does not allow government loans because these require funding fees or mandated mortgage insurance which is not permitted under Texas Cash out loans. Also, USDA government loan program does not have a cash out option like VA and FHA.
This is when the lender is trying to refinance the borrower repeatedly over short periods of time, typically less than a year from one loan to the next and the new loan is not in the borrower's interest or fails to provide any meaningful financial advantage.
No, unfortunately no doc loans were a major cause of the financial crisis of 2008. Called SISA, Stated Income and Stated Assets the only qualifications were checking the borrower's credit report and reviewing the appraisal. So technically there is no such thing as a no doc loan but it was the closest thing we've seen in the mortgage industry to making the mortgage application process and approval the same as the auto loan industry.
After the financial crisis of 2008 new regulations to the mortgage industry were implemented with the passing of the Dodd-Frank Act. These laws applied to "Qualified Mortgages", these include all government-backed loans guaranteed or insured by the Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA), and the Department of Veterans Affairs (VA). But also Conventional loans like Fannie Mae and Freddie Mac loans. Non-QM loans are loans that do not fall some of the key restrictions put in place by the Dodd-Frank Act. These loans are primarily alternative docs loans such as bank statements or asset depletion and investment property loans like DSCR.
Only non-owner occupied aka investment property Non-QM loans have pre-payment penalties. You can opt for a shorter or even no pre-payment period on NOO Non-QM loans for a slightly higher rate.
It depends on your scenario. We've found many times that similar scenarios have rates close to one another. For example on an investment property scenario where the borrower owns more than four financed properties but has a high credit score, the Non-QM rate offered wasn't far off from the full doc Fannie Mae investment property loan. This is due to the very high LLPAs, Loan Level Price Adjustors that Fannie and Freddie charge on investment property loans. To learn more about LLPAs got to fanniemae.com and search LLPAs.
DSCR is a Debt Service Coverage Ratio loan and is one way to qualify for purchasing an investment property when you are over Fannie Mae and Freddie Mac's limits on having a maximum of 10 financed properties. It also allows you to qualify on just credit score, appraisal and the rental income estimate from the appraisal of the subject property and the rental income potential of the property. Unlike conventional NOO, Non Owner Occupied loans it doesn't require you list all the rental properties and provide income documentation or tax returns to offset mortgages on all your other rental properties. Many DSCR products allow the borrower to close the property in the name of their investment company LLC, a time and money savings step for investors.
Also known as asset utilization, this type of Non-QM loan allows you to qualify on cash or cash equivalent assets you may have to make mortgage payments. Typically the lender wants to see enough of these assets to cover the housing payment plus your monthly debt obligations for a period of five years or more. But the asset's depletion can be used in combination with other income. It's a helpful solution for self-employed or retired individuals to buy home if they don't have enough monthly income documented to cover the traditional debt to income ratios used in underwriting the loan. Please reach out to your LOCAL Pro or get in touch with one by using our Find My Local or Pre-Approval links on our home page or website pop up.
It allows underwriters to use the borrower's business or personal bank statements to determine income. This calculation method is only available for self-employed or contract workers and reviews either 12 months or 24 months of their bank statements. It provides a mortgage solution for self-employed borrowers who's documents, typically tax returns, don't provide enough income to be approved for a traditional conventional, conforming or government loan. Please reach out to your LOCAL Pro to learn more.
They can take longer than Government, Conventional or Conforming Loans because there is no automated underwriting systems and these products are more of a manual underwriting process so more labor intensive than traditional loan products. Consult with your LOCAL Pro to determine how much time you will need.
Unlike Gov't, Conforming and some Conventional loans Non-QM loans do not have the same automated underwriting systems and automated appraisal review and scoring system. So these types of loans involve a lot more labor. While some investors we work with on Non-QM have automated "pre-approvals" they still must manually review each file in underwriting, especially the appraisal review, so all this slows things down a bit when compared to traditional loan products.
When you've rec'd your pre-approval and you've indicated you'd like to proceed with an application, we'll begin the application and loan submission phase. It's at this point we will complete a formal application with you. In this step we'll collect your social security number and form of payment so we can order your tri-merge credit report, import that data into your application or URLA, Uniform Residential Loan Application and then run AUS, Automated Underwriting System and confirm nothing has changed from the pre-approval we sent you. If changes are required, your LOCAL Pro will reach out to you to approve any changes. Next we'll prepare and send your initial disclosures including your LE, Loan Estimate and a list of documents we need from each borrower. Once you have approved your disclosures electronically and provided everything on the list we'll be able to submit your file to underwriting and begin the processing phase of your loan.
An LE is a TRID required document called the Loan Estimate. It's a three page document required by TILA-RESPA Integrated Disclosures to be delivered to the consumer within three days of an application. An application is considered given when the consumer provides the following six pieces of information to a lender. These are; name, income, social security, subject property address, estimated value and loan amount. Once obtained by the lender, the lender then must put an LE in the mail within three business days or deliver it electronically. Unlike a loan quote or rate and fees estimate, the LE holds the lender accountable with certain fee tolerances and reduces the risk of a bait-and-switch offers.
Many lenders will send you a rate quote and fees estimate instead of an LE, Loan Estimate, even if you've provided and or discussed all six TRID, TILA-RESPA Integrated Disclosure items triggering delivery of an LE. Some will delay asking you for your social security number like we do on our Pre-Approval. This way you can shop for the best offer and not have to pay for credit reports until you ready to complete a full application and submit your loan to underwriting. Our Pre-Approval is an excellent tool for estimating your payment and closing costs and allows you to what if things before you start spending money on a credit report, inspection and appraisal.
It's basically a sales pitch because there's no such thing as no closing costs. Title companies, insurance companies, property tax collectors, appraisers, surveyors and credit vendors all get paid at closing. The question is who pays for it? The answer is the borrower unless there are enough seller concessions to cover all the closing costs or the lender locks you with a high enough rate to pay for the closing costs out of their pocket.
Once the underwriter has fully approved your loan we can move out of the application and processing stage and into docs and closing stage, but we need your help to get there. Please work with our team to get any additional documents requested that could be needed to get you fully approved. These could be additional income, asset, business, required education courses or employer documents requested by our processing team after your initial submission. Please cooperate with these requests so we can approve your loan as quickly as possible and avoid delays or charges for lock extensions.
With our no hassle pre-approval, none! At the pre-approval stage we'll ask you questions and if you provide us accurate info we can give you an accurate pre-approval quote in minutes. Click our Pre-Approval link to get started.
If you want a full loan approval you will need to provide the following documents at a minimum; a copy of drivers license or passport, if non-citizen then visa and EAD card if applicable, most recent two months pay stubs, last two years W2s, last two years tax returns if self employed or contractor, most recent two months asset statements, all pages and for any accounts you will use for reserves, down payment and closing costs. And if you recently deposited large amounts in any of the accounts being used, over $2,500, then provide documentation where those funds came from. Also, provide a donor's gift letter if you will using any gift funds or gifts of equity. You will need these documents for each borrower on the loan. Always ask your LOCAL Pro to be sure your providing only what you need, and keep in mind underwriting may request additional documents for certain loan programs or scenarios.
We don't charge an application fee at LOCAL. However, once your pre-approval has advanced to the application and processing stage we'll ask you for form of payment and permission to charge a fee to cover the actual cost to LOCAL for borrower credit reports, work number fees for written VOE, Verification of Employment, appraisal and a survey if needed.
All investors purchasing closed mortgage loans require us sellers of mortgages to them to order, in our name, the full credit history for each borrower from all three credit bureaus provided in the format needed for mortgage credit reporting and running through an AUS, Automated Underwriting System. This type of report and score doesn't match what's provided by your bank or credit card company. This report is called a tri-merge credit.
Simply put it's the Loan to Value. Take the loan amount and divide by the lower of the sales price or appraised value. For example, you buy a home that appraises for $1,000,000 and your contract sales price was for $970,000 and you put a $300,000 down payment on it. The LTV would be 69.07%. But if sales price and appraised value where the same in this scenario the LTV would be 70%.
DTI is Debt to Income and is a ratio of your income to your revolving debt which are credit cards, installment debt like auto loans plus the propposed mortgage PITIA which is Principal, Interest, Taxes, Insurance and HOA dues.
Easiest way is to pre-apply and with your help we can get it figured out for you asap. It's the proposed PITIA, Principal, Interest, Taxes, Insurance and HOA dues for monthly housing payment plus all your monthly revolving and installment debt payments, i.e. credit cards and auto loans, divided by your total monthly income. Please use our links on our home page to Find Your Local or Pre-Apply and we can help you. You can also use the links on our website pop up for help.
45% is typically the max DTI, Debt to Income ratio for conventional or Non-QM loan programs. But on conforming loans the max is 50% with an AUS, Automated Underwriting System approval from either Fannie Mae's DU, Desktop Underwriter or Freddie Mac's LPA, Loan Product Advisor. With FHA it can go to as high as 56.9%. VA doesn't set a maximum DTI but recommends a standard of 41% but VA underwriters can approve a higher DTI but they must manually evaluate the Vet's residual income to support a higher DTI. Also on conventional loans as well as conforming the borrower's reservers have big factor in how high the borrower's DTI can go over the standard 45%. Want to know what DTI you can get approved for, then use our Pre-Apply on our home page or website pop up link and find out.
It's the number of months the borrower can go using money they have in checking, savings and investments including 401K or stock trading accounts they could access to cover their monthly housing expense or proposed total mortgage payment on their loan application.
A lot as you can imagine. But after you've done a pre-approval and you've indicated you'd like to proceed with an application, we'll begin the application and loan submission phase. It's at this point we will complete a formal application with you. In this step we'll collect your social security number and form of payment so we can order your tri-merge credit report, import that data into your application or URLA, Uniform Residential Loan Application and then run AUS, Automated Underwriting System and confirm nothing has changed from the pre-approval we sent you. If changes are required, your LOCAL Pro will reach out to you to approve any changes. Next we'll prepare and send your initial disclosures including your LE, Loan Estimate and a list of documents we need from each borrower. Once you have approved your disclosures electronically and provided everything on the list we'll be able to submit your file to underwriting and begin the processing phase of your loan.
Underwriting consists of a team of individuals trained to review and clear all the loan documents and public records to determine if the proposed loan is in compliance with all government and banking regulations, including any state and federal laws impacting mortgage originations. The underwriting team consists of processors, underwriters and compliance team members. Processors review and check your documents and submit them to underwriters to review. Underwriters review your proposed loan and its documents and can either sign off on your loan approval or decline it should it not meet guidelines or regulations. These individuals are highly trained and often have special certifications such as DE, SAR and LAP. Last, are the compliance team members who ensure federal and state disclosure laws and lending tolerance tests are all passed. Any mistakes by this team could put the lender in financial jeopardy should it violate government or banking underwriting requirements as well as any federal or state laws and required disclosures. The underwriting process includes both human and technology to perform quality control steps like scanning documents, confirming their accuracy with the banks, CPAs, IRS, employers and others, as well as looking for any loan quality issues like possible fraud or misrepresentation.
Underwriters are looking over the documentation provided to confirm the information on your loan application is accurate and ensure the lender is meeting the product guidelines so they can approve your loan. They also run online research tools known as red flag reports to search any public records to alert them to check out things like lawsuits, undisclosed properties etc. Sometimes they will get inconsistent information that needs clarification from the borrower with a letter of explanation or they may request additional documents to support a borrower meets that loan product's guidelines. These are called underwriting conditions. Please work with your LOCAL Pro to clear any outstanding underwriting conditions as soon as possible.
The most commonly known automated underwriting systems or AUS are Desktop Underwriter DU and Loan Product Advisor LPA. DU is Fannie Mae's while LPA is Freddie Mac's. These conforming AUS tools can be used for assessing FHA and VA loans as well as conforming loans. Even some Jumbo loans use these systems. But Non-QM and USDA do not. USDA has GUS for an automated underwriting system.
In the past a form was submitted by lenders to the borrower's employer for the supervisor or their HR to fill out. Due to increased fraud for housing and employers hoping to reduce legal risk providing this information, many have lenders go through a third party service called the Work Number. This vendor works with employers to do most verifications of employment these days. By using the Work Number they lender and employer can insure the information provided on the verification is accurate and not fraudulent. Work Number typically charges around $70 per borrower and per job. The lender must verify all work history in the last two years on most loan products today. This means if the employers only use work number and the borrower has had three jobs in the last two years, then they would have $210 worth of verification of employment costs while applying for a loan.
A letter from the borrower to explain things like gaps in their employment history or recent credit inquires are the most common. Our team will provide you a format to use and help should one be required.
There is no rule that you cannot but it will delay your approval and or loan closing as the underwriter will need to get documentation showing the balance and payment info for these new debts from the credit bureaus using what's called a credit supplement. Also, these new payments once added to your debt ratio could mean you no longer qualify for the loan or require a restructure or different loan product to get you re-qualified. We highly recommend you do not add any new credit throughout the entire loan process from pre-approval through loan closing.
If anything about your financial situation changes please make sure to you let your LOCAL Pro know right away. Also, please know that each borrower signs a final URLA, Uniform Residential Loan Application at closing as well as other documents including one regarding occupancy if a primary residence. Do not misrepresent yourself on any of these documents signed at closing as it could risk you committing loan fraud and face state and or federal charges and at a minimum enforcement of the note acceleration clause in your mortgage. This clause is their legal way to force you to refinance, pay off the note, sell the property or face foreclosure if you misrepresented yourself on your loan documents.
If you can't provide the documents needed to meet the guidelines of the loan product you chose then we'll need to restructure the loan or choose another loan product that doesn't require the same documents. In a restructure we may have to add a co-borrower. For example you don't have employment documents or we cannot verify your employment then adding a borrower who can verify their employment could work. Or let's say your self-employed but your expenses are so much that your taxable income is too low to qualify. Then we could choose another loan product like Non-QM and use their 12 or 24 months bank statements program.
Usually on the first submission of all your documents and application to underwriting there are follow up conditions that arise based on the original documents provided. Essentially your file has some trailing items that are still needed before a final approval or clear to close can be given by the underwriter. For example, they have cleared everything except for home ownership course and hazard insurance because the borrower is still shopping for a lower insurance bid and hasn't taken a required homeownership course, typically required for 97% LTV loans and first time home buyers.
Once all underwriting conditions have been cleared a final approval letter is provided by the underwriting giving the lender the clear to close on the loan. This is the point the lender moves the loan to their closing team to begin preparing closing docs and working with both the attorney's and title company to prepare it for closing.
If you are denied approval for any reason our LOCAL Pro will present all alternatives available to you to help you secure a mortgage. If you can't be approved for the loan product or terms you requested or any alternative we will let you know why in writing, using what's known as an adverse action letter. When this happens a lender must notify the consumer within 10 business days after the decision is made. That decision must be in writing and include the reason for the adverse action. If receive this letter you have a right to request a copy of your credit report. This process falls under ECOA Equal Credit Opportunity Act and FCRA Fair Credit Reporting Act. But your LOCAL Pro will go above and beyond the minimum steps required should you be denied credit and offer free consulting and help so they can get you approved at a future date. This typically requires improving credit scores but also could be paying off debts you could not do so either prior to or at closing.
Our number one goal is providing 5.0 Star service so should we ever fall short of that for you then we need to know why. We send out surveys to our borrowers and even to our vendors who we do business with to rate our performance. We also rate our vendors too! We expect the best from our entire team, but we know things can happen and when they do we want to make it right. Please call or use our chat on our home page or the pop up link and ask to speak to management. You will be asked some questions so we can get busy working on your issue and direct you to one of our LOCAL Leaders asap.
Depends on your strategy, it's best to start a chat or use Find Your Local on our home page or pop up to determine realistic closing costs. Most lenders misquote home owners insurance, property taxes and title company fees either because they don't know or they to make it appear their closing costs are lower than a competitor's. Here's a little secret, the only fees your lender can truly control are in section A of the LE, Loan Estimate known as lender or origination fees. The LE is a federally mandated disclosure every lender must send you once you completed an application providing at minimum your name, social security number, income, subject property address and loan amount sought. At least 3 days prior to closing the lender must provide you a CD, Closing Disclosure which finalizes all the numbers that were quoted on the LE and the rate must be locked on a CD, it cannot be floating.
Changes can occur during the processing and approval of the loan that could change your closing costs, such as changing loan product. Lenders also over estimate fees to prevent violating TRID, TILA-RESPA Integrated Disclosures. Because, if they make a change that increase a 0% tolerance item or increase the charge on a 10% tolerance item, either on the LE or CD, they have to reimburse the borrower for that difference or cancel that loan and start over with a new TRID waiting period, in short delay your loan by at least 7 business days, cannot count Sundays or holidays. Your lender can only control the fees in section A aka lender fees of your LE or CD.
After 3 days, not including Sundays or holidays. Also, day one does not start until you acknowledge receipt of your CD.
Only when asked by your title company closing agent or attorney. And due to wire fraud scams it's best to confirm with them over the phone you have rec'd the correct wiring instructions. Please note, LOCAL will not provide you with wiring instructions. If you receive wiring instructions from someone claiming to work with LOCAL please report immediately to your LOCAL Pro.
Our team will give you payment information at closing. The process of collecting payments from borrowers is called Servicing. In order to obtain the best price for our borrowers, LOCAL sells loans to the highest bidder. This strategy allows us to offer you highly competitive rates. In some situations, a borrower might make their first payment or even second payment to LOCAL but at closing will let you know where to make your payment. LOCAL has a large roster of reputable mortgage investors, including major US banks, that we sell loans to and these quality partners will provide you excellent servicing of your loan once we've sold it to them.
Your LOCAL Pro is always available to you for any help or assistance even after your loan is approved or even closed. However if you have an emergency and can't reach them just use our contact us page below and choose chat or call and will put a member of our closing team in touch with you asap.
If closing docs are already sent or you're at the closing table we'll need time to update everything and if the change is say for a higher loan amount than you were approved for then you will need to get an updated approval. Please keep in mind this could postpone your closing date to make sure everything is done properly and a new approval is issued by underwriting.
If something doesn't look right to you, don't sign, ask the title attorney or closing agent any questions you may have and if they can't resolve they will get in touch with our closer to resolve. Also feel free to reach out to your Local Pro for help as well.
You will sign a final version of your URLA, Uniform Residential Loan Application and CD, Closing Disclosure. Remember if anything changed about your job or the financial information you provided do not sign these documents without letting your Local Pro or member of our team know asap. We might need to update your approval so you avoid any misrepresentation at closing. Other key documents are the mortgage promissory note, mortgage/deed of trust, deed of transfer, proof of home owner's insurance and affidavits like you will be occupying the property if it's a primary residence. Also an attestation that the information you provided on your closing documents is accurate.
Always check with your Escrow Agent before going to closing and make sure to have a state issued photo ID, Passport or Military ID to bring with you. They will let you know exactly what you need and how much money you will need to bring to closing and what form of payment is acceptable. Beware of wire scams, there are many spearfishing scams that look like authentic wiring instruction emails from your Escrow Agent or title company. When you receive wiring instructions make sure to call you Escrow Agent and confirm with them the information you received. And also know Local Mortgage Pros will never send you wiring instructions even on the title company's behalf, so if you see an email from us telling you where to wire money please notify your LOCAL Pro immediately.
When a borrower pays off a loan or a large portion of the balance within the the first 6 payments the servicer of that loan calls it an EPO, Early Pay Off and they make the mortgage company who originated loan repay their losses on the loan. This means LOCAL losses more than just the money they earned originating the loan. If you intend to pay off early, that's less than 6 payments made, regardless of the reason, please let your LOCAL Pro know up front during the application process. They can modify your quote to reduce the cost to LOCAL should you decide to pay off loan in the first six payments.
At the time of closing or just prior to it, we'll provide you instructions on how to make your first payment. Your payment might be made to us, or if we've sold your loan, then to another lender. No matter what will help you get your payment set up and make the process easy.
Yes, if you closed the loan as Non Owner Occupied loan. But no if you closed it as a primary residence aka Owner Occupied. When you sign your final application at closing your indicating the information on it is correct, including occupancy. Also at closing and if it's a primary residence transaction, you will sign a document stating you will move into the property within 60 days of closing. If you do not then you could put yourself in a possible loan fraud situation and trigger the note acceleration clause in your mortgage note. Agencies and investors are following up after closing on owner occupied loans to see if borrowers take up residence in the subject property. If it turns out you rented the property after closing then the lender will enforce the acceleration clause in your mortgage note for the misrepresentation. This could force you to pay off, sell or refinance it as investment property or face foreclosure proceedings for misrepresentation on your loan application.
If your property taxes or hazard insurance increase before you next assessment by your servicer you could end up with an shortage in your escrow account. Under RESPA, Real Estate Settlement Procedures Act the servicer is required to allow borrowers time to make up escrow shortages typically with equal monthly payments over the next 12 months. You will receive options from your servicer should this occur.
If you run into troubles paying your mortgage you need to explore any option that avoids damaging your mortgage credit history. While your credit score can recover quickly for lates on a credit card or auto loan payments, doing the same with your mortgage payments can have long term negative consequences when obtaining your next mortgage. If you cannot restructure your loan with a modification or refinance then maybe adding a co-borrower can help make ends meet. Or perhaps renting it out. But if you can no longer make your payments then look into selling your home as early as possible. Your LOCAL Pro is always available to advise you, so please reach out to them as soon as you think there might be a problem. This give you as much time as possible to make changes before impacting your credit.
Yes you can if you meet the terms of your loan product to waive escrows. Please contact your servicer to see if you can opt out of escrows. If not then contact your LOCAL Pro who helped you close your loan to explore refinance strategies to eliminate escrows and even monthly PMI, Private Mortgage Insurance.
Yes it is possible to cancel PMI. It depends on the type of loan you have, your LTV and when you closed your loan. Contact your LOCAL Pro to determine if you qualify to remove monthly PMI payments and explore any refinance opportunities.
Yes, rarely does a loan stay with the same lender. There are many circumstances why a loan is sold, costs and overhead are a probably the biggest reasons. Many very large lenders and banks, both called investors prefer to focus on buying closed loans from other lenders rather than investing in marketing and origination. These investors competing with each other to buy closed loans versus originating them actually helps keep rates lower. Local Mortgage Pros works with the most competitive priced investors to help provide our clients competitive rates.