Frequently Asked Questions
Is this a hard credit pull or soft credit pull?
In order to qualify you, we have to do a hard credit pull.
What credit score do you look at?
We pull Equifax, Experian and TransUnion and your qualifying score is the middle credit score. (Or the lower of the median score between any borrowers on the loan).
Why does my credit show different from the credit score I see on Credit Karma or other sites?
We see this a lot. We use the mortgage credit model that Fannie and Freddie use . Companies like Credit Karma use a deferent consumer model which often shows different scores.
How long does the credit pull last for?
Credit lasts for 120 days, so as long as you close on your home within that time frame we won’t have to re-pull credit. Before closing, there will be a so pull on your credit to verify you have not added any new tradelines/racked up credit card debt but this so pull will not affect your credit.
What is considered good credit?
We need a minimum of a 620 credit score in order to be able to qualify you. Anything above 760 is considered great but above 780 gets the best interest rate pricing. Your credit score will help us decide the best loan program for you.
What happens if I don’t qualify?
If you don’t qualify, we will work on a plan to help you figure out action items that will help you qualify in the future.
How much money do I have to put down?
The down payment depends on the loan program you qualify for but you have to put a minimum of 3% on conventional (as a first time home buyer), 3.5% down on FHA, or 0% for VA.
Can the down payment be a gift?
Yes, you can get a gift from a family member for down payment.
When is my rate is locked in?
Rates change every day and we cannot lock in your rate until you are under contract. The interest rate lock is based on your profile, the property and the time frame you have until closing, so your rate will be subject to market changes until you go binding.
NOTE: If you are ever comparing interest rates with multiple lenders, please make sure to compare the estimates from the same day to get a true apples to apples comparison.
What is this the most I qualify for?
We typically don’t qualify clients for their max amount. We figure out your maximum funds available to bring to closing and your maximum desired monthly payment and run numbers based on that. If you want to qualify for more let us know and we will re-run numbers for you.
Can I just email you my documents?
Due to security regulations, we will provide you access to a secure portal. You should always upload your documents to this site so we can keep all of your information secure.
If I am not sure when I am going to buy, can I wait to provide documents?
We suggest that you go ahead and submit your documents now. Once you provide them, we will set up your file and you’ll be ready once you find a home. The home buying process moves quicker than you think. You will want to be prepared to make an offer as soon as you find the perfect home instead of rushing to collect documents.
What happens once I lock my rate?
Once you lock your interest rate, it cannot go up. However, on the same note, it cannot go down either. Once you lock in your interest rate, it is locked through your close period.
Should I wait until after I get through my inspection to send these documents?
No. When you are buying a home, there are 4 dates we need to monitor: Due Diligence, Financing Contingency, Appraisal Contingency, and Close Date. We have given details on these dates below, but need your documents within 48 hours so we can keep you on track for all dates. If you decide to terminate during your due diligence, we can cancel your loan. However, if you don’t cancel during that period, getting the documents to us quickly will allows us to keep your loan on track.
Due Diligence – this is the period of time you can cancel for any reason and get your earnest money back.
Financing Contingency – this is the period of time you can cancel and get your earnest money back if you have any loan issues that won’t allow you to close.
Appraisal Contingency – this is the period of time you can cancel and get your earnest money back if you have any appraisal issues.
Close Date – the date you sign for your new home.
Can I choose my appraiser?
No. Since 2009, there are rules and regulations that state we have to use an appraisal
management company to auto-assign an appraiser.
What happens when you order title?
We receive the title and review it to confirm there are no liens on title.
Why do you need all pages of my bank statements if the last pages are blank?
Fannie and Freddie require all pages even if they are blank.
Why is the underwriter asking for information I feel like I have already provided?
The underwriter needs documents in specific formats. We will let you know exactly what they need to satisfy their conditions.
Why do I have to sign the Initial Closing Disclosure (CD) if it is not correct?
There was a regulation passed that requires this document to be signed 3 days prior to closing or you cannot close on time. At this point of the process, all of your closing costs will be correct but we will still be finalizing your pre-paids and escrows.
When should I wire my money?
Most people wire 24 hours prior to closing, but if needed, you can wire the money early based on the numbers from the Initial Closing Disclosure (CD). If you wire too much, the attorney will cut a check back to you. If you wire too little, the attorney will take a personal check for the difference.
Should I notify my bank?
Yes. You will want to reach out to them to confirm their process for wiring ahead of time.
How do I confirm the closing attorney received my wire?
Please call us once you send the wire and we’ll confirm for you.
What do I need to bring to closing?
Please bring your checkbook and 2 forms of ID.
What NOT to do during the loan process.
1. Do NOT change or quit jobs
2. Do NOT buy a car, truck or boat (unless you plan to live in it)
3. Do NOT max out your credit cards
4. Do NOT close any credit accounts
5. Do NOT spend your down payment money
6. Do NOT buy furniture (or make large purchases) before your loan closes
7. Do NOT become self employed
8. Do NOT make any large undocumented deposits into your bank account
9. Do NOT shuffle your money
10. DO NOT co-sign for ANYONE!
Any of these can considerably alter your approval status and can cause your real estate transaction to fall apart. Please let us know immediately if any of these situations change for you.