Frequently Asked Questions
Answers to commonly asked questions
- When can I lock?
- To maintain the low costs and rates that we are able to offer we maintain a strict lock policy of not locking for less than 30 days, and only after we’ve obtained the appraisal.
- What if the rates go down after I lock, can I get the lower rate?
- Locking in your rate is asking for protection against the rise in interest rates. If you are locked you are receiving this protection, but the trade off is that if rates go down, you cannot move your rate down with them.
- Why can’t I include my appraisal in my closing costs?
- Due to current regulations, the appraisers have to be paid at time of service. This always happens before the loan closing.
- Why is the appraisal cost higher than what I’m used to seeing?
- Due to the HVCC Law that went into effect in 2009, Appraisal Management Companies (AMCs) now manage the ordering and delivery of appraisals to ensure that no coercion can be used on their independent valuation of the properties. This created additional oversight and management costs, and increased the end price of appraisals. Also, all appraisers on the panels for the AMCs are fast in their turnaround times, and to keep this level of service the appraisal cost is higher than other AMCs.
- When will my credit be pulled?
- Once you have uploaded your documentation that includes your social security number on it, we will pull your credit report.
- If I pay for my credit report or apprasial up front, will I be charged again at closing?
- Absolutely not. It is against the law for us to double charge you for items that were previously paid for prior to closing.
- Why does the cash to close on the Loan Estimate not equal the quote that was given to me by my loan officer?
- The Loan Estimate is required to list all of the fees of the loan, whether they are actually charged to the borrower at closing or not. The item that most commonly causes confusion, is the "Owner's Title Insurance" charge, that is paid for by the Seller of the property in a purchase transaction. This is listed as a fee for the buyer on the Loan Estimate, but per the Real Estate Contract, this is a Seller's fee, and will be covered by them in addition to any contribution they are giving the buyer at closing.