Every situation is different, but it usually takes anywhere from a few weeks to a few months to go from application to closing. To learn more about what to expect in each part of the home loan process, see how it works.
Every situation is different, but when we review your home loan application, we look at your:
Credit score. This is determined by things like payment history and how long you’ve had credit. We’ll use this number to figure out how likely you are to pay back your loan and what interest rate you'll get.
Debt-to-income ratio. This percentage is your total monthly expenses divided by your gross monthly income.
Down payment. This is the amount paid up front when you purchase a home and isn't part of the loan. The higher the down payment, the less risky you seem to a lender — which could mean a lower interest rate, too.
Employment history. We want to make sure you’ll be able to afford your home, so proof of income is important.
Not always. Sometimes lenders will keep your loan and you can pay them directly each month, but it's not uncommon for them to sell the servicing rights to a loan after you close. This frees up credit lines and enables them to lend money to other borrowers.
When you get a home loan with us, we'll let you know within 15 days of closing who will be servicing your loan and where to make future payments. While you won’t be paying us directly, the terms of your loan won’t ever change and you can always reach out to us if you have any questions.
This document provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. It also gives you information about the estimated costs of taxes and insurance, and how the interest rate and payments may change in the future. Lenders are required to provide you with a Loan Estimate within 3 business days of receiving your completed loan application. We'll provide your Loan Estimate instantly online following your application if it’s approved.
This is when we look at everything you've sent us and make a final decision on your loan. It usually takes 2-3 weeks to make sure your documents are accurate and your application is complete. Your home loan expert will provide an update every few days so you always know where your loan stands.
Private mortgage insurance (PMI) is a part of the loan payment and protects the lender if a borrower defaults on a home loan. If applicable, this charge can be viewed on the first page of your Loan Estimate under projected payments. You may be required to pay PMI if your down payment is less than 20%. That being said, PMI is automatically terminated when your principal balance is scheduled to reach 78% of your home's value or the month following the midpoint of your amortization schedule, whichever occurs first.
Unlike most big banks and lenders, we have no lender fees. This means you pay no fees for the application, origination, processing, or underwriting of your loan.
Refinancing isn't free, however. You'll still have to pay fees for your title, credit report, etc. Refinancing closing costs are similar to those you pay on a home sale — about 2% to 5% of your home price. It’s important to weigh the costs against the potential savings to determine if refinancing is worth it.