Kentucky First Time Home Buyer Questions to Ask Your Lender?


 KHC's First Mortgage Government Loan Products

Kentucky First Time Home Buyer Questions to Ask Your Lender?

∘ What kind of credit score do I need to qualify for different first time home buyer loans in Kentucky?

Answer. Most lenders will wants a middle credit score of 640 for KY First Time Home Buyers looking to go no money down. The two most used no money down home loans in Kentucky being USDA Rural Housing and KHC with their down payment assistance will want a 640 middle score on their programs.

If you have access to 3.5% down payment, you can go FHA and secure a 30 year fixed rate mortgage with some lenders with a 580 credit score. Even though FHA on paper says they will go down to 500 credit score with at least 10% down payment, you will find it hard to get the loan approved because lenders will create overlays to protect their interest and maintain a good standing with FHA and HUD.

Another popular no money down loan is VA. Most VA lenders will want a 620 middle credit score but like FHA, VA on paper says they will go down to a 500 score, but good luck finding a lender for that scenario.

A lot of times if your scores are in the high 500’s or low 600’s range, we can do a rapid rescore and get your scores improved within 30 days.

 

Does it costs anything to get pre-approved for a mortgage loan?

Answer: Most lenders will not charge you a fee to get pre-approved, but some lenders may want you to pay for the credit report fee upfront. Typically costs for a tri-merge credit report for a single borrower runs about $50 or less. Maybe higher if more borrowers are included on the loan application.
∘ How long does it take to get approved for a mortgage loan in Kentucky?

Answer: Typically if you have all your income and asset documents together and submit to the lender, they typically can get you a pre-approval through the Automated Underwriting Systems within 24 hours. They will review credit, income and assets and run it through the different AUS (Automated Underwriting Systems) for the template for your loan pre-approval. Fannie Mae uses DU, or Desktop Underwriting, FHA and VA also use DU, and USDA uses a automated system called GUS. GUS stands for the Guaranteed Underwriting System.

If you get an Automated Approval, loan officers will use this for your pre-approval. If you have a bad credit history, high debt to income ratios,  or lack of down payment,  the AUS will sometimes refer the loan to a manual underwrite, which could result in a longer turn time for your loan pre-approval answer

Are there any special programs in Kentucky that help with down payment or no money down loans for KY First Time Home Buyers?

Answer: There are some programs available to KY First Time Home Buyers that offer zero down financing: KHC, USDA, VA, Fannie Mae Home Possible and HomePath, HUD $100 down and City Grants are all available to Kentucky First Time Home buyers if you qualify for them. Ask your loan officer about these programs
∘ When can I lock in my interest rate to protect it from going up when I buy my first home?

Answer: You typically can lock in your mortgage rate and protect it from going up once you have a home picked-out and under contract. You can usually lock in your mortgage rate for free for 90 days, and if you need more time, you can extend the lock in rate for a fee to the lender in case the home buying process is taking a longer time. The longer the term you lock the rate in the future, the higher the costs because the lender is taking a risk on rates in the future.

Interest rates are kinda like gas prices, they change daily, and the general trend is that they have been going up since the Presidential election in November 2016.
∘ How much money do I need to pay to close the loan?

Answer: Depending on which loan program you choose, the outlay to close the loan can vary. Typically you will need to budget for the following to buy a home: Good faith deposit, usually less than $500 which holds the home for you while you close the loan. You get this back at closing; Appraisal fee is required to be paid to lender before closing. Typical costs run around $400-$450 for an appraisal fee; home inspection fees. Even though the lender’s programs don’t require a home inspection, a lot of buyers do get one done. The costs for a home inspection runs around $300-$400. Lastly, termite report. They are very cheap, usually $50 or less, and VA requires one on their loan programs. FHA, KHC, USDAS, Fannie Mae does not require a termite report, but most borrowers get one done.

There are also lender costs for title insurance, title exam, closing fee, and underwriting fees that will be incurred at closing too. You can negotiated the seller to pay for these fees in the contract, or sometimes the lender can pay for this with a lender credit.

The lender has to issue a breakdown of the fees you will incur on your loan pre-approval.
How long is my pre-approval good for on a Kentucky Mortgage Loan?

Answer: Most lenders will honor your loan pre-approval for 60 days. After that, they will have to re-run your credit report and ask for updated pay stubs, bank statements, to make sure your credit quality and income and assets has not changed from the initial loan pre-approval.

 

How much money do I have to make to qualify for a mortgage loan in Kentucky?

Answer: The general rule for most FHA, VA, KHC, USDA and Fannie MAe loans is that we run your loan application through the Automated Underwriting systems, and it will tell us your max loan qualifying ratios.

There are two ratios that matter when you qualify for a mortgage loan. The front-end ratio, is the new house payment divided by your gross monthly income.  The back-end ratio, is the new house payment added to your current monthly bills on the credit report, to include child support obligations and 401k loans.

Car insurance, cell phone bills, utilities bills does not factor into your qualifying rations.

If the loan gets a refer on the initial desktop underwriting findings, then most programs will default to a front end ratio of 31% and a back-end ratio of 43% for most government agency loans that get a refer. You then take the lowest payment to qualify based on the front-end and back-end ratio.

So for example, let’s say you make $3000 a month and you have $400 in monthly bills you pay on the credit report. What would be your maximum qualifying house payment for a new loan?

Take the $3000 x .43%= $1290 maximum back-end ratio house payment. So take the $1290-$400= $890 max house payment you qualify for on the back-end ratio.

Then take the $3000 x .31%=$930 maximum qualifying house payment on front-end ratio.

So now your know! The max house payment you would qualify would be the $890, because it is the lowest payment of the two ratios.

 

 

 

 

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

 

Louisville Kentucky First Time Home Buyer Programs and Resources


Louisville Kentucky First Time Home Buyer Programs and Resources.

via Louisville Kentucky First Time Home Buyer Programs and Resources.

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 

Joel Lobb - Mortgage Broker or Lender at Kentucky FHA, VA, USDA, KHC and  First Time H

The Top 5 Questions to Ask Your Lender


The Top 5 Questions to Ask Your Lender.

The Top 5 Questions to Ask Your Lender

The Top 5 Questions to Ask Your Lender1. “Which loan is best for me?”
When applying for a mortgage, it’s important to know about the various different types of loans available, and which one is best suited for you. For example, there are fixed rate and adjustable rate mortgages, loans than run 30 years or 15 years, and government assistance programs if the home you are purchasing is in need of repair or is located in a rural area. An honest lender will work with you and help you identify the best type of loan for you, so don’t be afraid to ask if there are other options available.

2. “What does APR really mean?”
Many buyers are confused by interest rates, annual percentages rates (or, “APR” for short), and how to tell the two apart. APR is a figure that is calculated by a complex formula. It includes the interest rate and all of the other related lender fees divided by the loan’s term. Because interest rates fluctuate, so does the APR. When your lender is calculating the numbers, ask them to explain all fees, including the APR, so that you’ll have a better understanding how they reached the total of the loan and your monthly mortgage payment amount.

3. “What are discount points?”
If there’s one thing that confuses first time buyers, it’s discount points! Discount points allow you to buy down the interest rate, and generally speaking, a point is equal to one percent of the loan amount. So, if your loan is for $200,000 and you buy two points, that’s $4,000 off your loan. Basically, you’re making an upfront payment that reduces the interest rate and saves you money over the life of the loan. Oh, and they’re also tax deductible! Some lenders offer discount points, but others don’t, so be sure to ask if yours does. Also, be aware that many lenders charge fees for points, so clear that up beforehand, too.

4. “Do you offer loan rate locks?”
Interest rates can swing up or down fairly quickly, meaning the rate that a lender quotes you during your pre-approval may not be the same one you receive on your final loan agreement. The best way to make sure that you get the rate you were first quoted is by locking in the rate. Most lenders offer this option, but some don’t, so it’s always a good idea to ask. Typically speaking, you can lock in a rate for less than one point, so that’s some added security and one less headache you’ll have to deal with later in the process.

5. “Is there a prepayment penalty?”
This is a very important question that many borrowers forget to ask because they aren’t thinking about the future when they’re purchasing a home in the here-and-now! In many states, prepayment penalties are illegal, but some states still allow lenders to charge up to six months of unearned interest if you pay off the loan early though a refinance or if you sell the home.  You never know what the future holds, so it’s always best to know if you’ll be charged a penalty should you refinance or sell your home at some point down the road.

Check out this great MSN video – Race to Lock in Lower Mortgage Rates


Check out this great MSN video – Race to Lock in Lower Mortgage Rates.

 

 

8 ways to lock in a mortgage rate you can live with

You can’t keep mortgage rates from bouncing around. But the right strategies can stack the odds in favor of snagging a lower rate.

Mortgage rates are jumpier than a cat in a room full of rocking chairs. In a single week this month, the average rate on a 30-year fixed-rate loan shot from 4.29% to 4.51% (with 0.8 point). This week, rates averaged 4.37%,Freddie Mac says.

Those numbers matter. At the higher rate, your payment on a $300,000 mortgage would be $1,521. The week before: $39 less. That’s $468 a year — $14,040 more, if you kept the loan for 30 years.

Ping-pong

There have been other crazy rate surprises this summer, most of them bad for mortgage shoppers. Blips like these mean that home shoppers get less home for the money. Refinancing homeowners face higher monthly payments.

You can’t stop the mortgage rate ping-pong. But you can maximize your chance at a good rate. Mostly, that involves timing your interest rate lock.

A “rate lock” is your contract with a lender that guarantees you a certain prevailing interest rate. You agree to buy the loan at that rate within a time period — 60 days, say. The lock lets you nail down a rate, so you’re covered if rates rise. (Here’s more from Bankrate.com.) If rates drop and you want to exit the agreement early, you stand to lose a fee or deposit.

1. Catch a dip

Avoid locking when rates are on an upswing, says Dale Robyn Siegel, a real-estate attorney and owner of Circle Mortgage Group in Harrison, N.Y. Well, duh. Sure. But can you know if rates will go up?

You can’t know for sure. But you can watch rates every day at your bank’s website. And MSN Money (at the bottom left of the page) shows whether rates are trending up or down. Even when rates are rising generally, as they are now, they’ll probably take a few detours up or down along the way, Siegel says.

The trick is to lock in a dip. Whether you can wait and watch depends on your timing. If you are refinancing, you may have time. If your home purchase is closing soon, you may have to lock now.

2. Don’t act on news

Rates react to news. Recent rate jumps, for example, began when traders reportedly worried that the Federal Reserve would slow its bond-buying program, which has helped keep rates low.

After rates shot up they dropped back a bit, points out Perry Harmon, mortgage broker with Financial Strategies Group, in Berkeley, Calif.

Bad news financial news or a major catastrophe in the world can push rates higher temporarily. If possible, wait a bit to lock. Rates may simmer down.

3. Put service first

When shopping for a lender, focus initially on great service, says Siegel. Collect recommendations from friends, colleagues and family. Interview several of the lenders. Tell them your approximate credit score and any problems that could affect your application — bankruptcy, for example, or a short sale, or credit problems. But don’t allow them make credit score inquiries. Wait until you’ve selected a lender. Too many inquiries could drive down your score.

After you’ve found two or three good lenders, then compare their rates to help choose, Siegel advises. Ultimately, though, good advice from a smart, expertise of a great broker or lender’s representative might get you the best rate.

4. Ask about a ‘float down’

Some lenders offer a “float down,” a rate-lock provision that offers you the chance at a lower rate if prevailing rates drop after you’ve locked. These contracts vary and they cost extra.

5. Know your limit

Identify the highest rate you can afford. Use a mortgage calculator (here’s one, at MSN Money) to find the monthly payment at various interest rates.

Maybe it’s 4.75%, for instance. If rates go any higher, your monthly payments would be too expensive. When rates approach your limit, you’ll know it’s time to lock or drop out of the game.

6. Be ready to pounce

Be prepared to pounce when rates dip, says Harmon. Do that by clearing away obstacles as they arise. If your mortgage banker, broker or lender wants a document or piece of information, get it to them as quickly as possible, Harmon says.

7. Buy a shorter lock

The shorter your lock period, the smaller your lock fees. Most borrowers now lock for 45 or 30 days, so the rate guarantee won’t expire before the loan is processed, says Harmon. On a $300,000 mortgage, a 30-day lock costs about $540 less than a 45-day lock, he says.

Other factors may trump the rate-lock timing. If rates are trending up, for instance, you may need to lock quickly, even if you need a long lock. But ideally, wait until your appraiser has delivered his report to the lender and the loan processing is nearly complete. A 15-day lock could save you $960 compared with a 45-day lock, Harmon says.

8. Chill a little

These numbers matter, but only to a point. Obsessing over tiny rate increases that actually mean just $10 or $25 more or less a month could cause you to lose a good rate.

Don’t try for bragging rights among your friends over who got the lowest rate. Relax, says Harmon. “It’s not worth the worry.”

Mortgage rates rise at fastest pace in 10 years | HousingWire

Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Mortgage rates rise at fastest pace in 10 years | … (louisvillekentuckyvamortgage.blogspot.com)


Mortgage rates rise at fastest pace in 10 years | HousingWire.

Mortgage rates nudge higher as economy firms


Mortgage rates nudge higher as economy firms.

 

 

 

 

Louisville Kentucky Mortgage Rates

Louisville Kentucky Mortgage Rates.

via Louisville Kentucky Mortgage Rates.

Kentucky Mortgage Rates

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                                                            Open Today 9:00 am -7:00 pm

Kentucky Mortgage  Rates

Kentucky Mortgage Current Interest Rates
Fixed Rate Programs
    Lock
days
 iQualifying
Ratios
Program Calculator Rate Points APR
 Conforming 30 year fixed 3.500 0.000 3.574 30 28 / 41Prequalify
Kentucky Mortgage Only- Rates Change w/o notice
Conforming 20 year fixed 3.500 0.000 3.412 30 40 / 41Prequalify
kentucky mortgage rates only- change w/o notice
 Conforming 15 year fixed 3.00 0.500 2.974 30 28 / 41Prequalify
kentucky mortgage rates only- change w/o notice
 FHA 30 year fixed 3.125 0.500 4.187 30 35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
 FHA 15 year fixed 3.125 0.000 3.389 30 35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
 Jumbo 30 year Fixed 4.375 1.000 4.385 30 28 / 36Prequalify
kentucky mortgage rates only- change w/o notice
 VA 30 Year fixed 3.125 0.000 4.114 30 41 / 41Prequalify
kentucky mortgage rates only- change w/o notice

Kentucky Mortgage  Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC,  and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required for a Kentucky Mortgage Only.

A 720 credit score or higher is assumed for a Kentucky Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Kentucky Conventional loans are assumed at 80% ltv or less.

  • The displayed Annual Percentage Rates (APRs) reflect the interest rates, total points, and additional estimated pre-paid finance charges for the loan products shown for Kentucky Mortgage Rates, but do not include other closing costs.
  • The approximate cost of prepaid finance charges does not constitute and is not a substitute for the Good Faith Estimate of Closing Costs (GFE) that you will receive once you apply for a Kentucky Mortgage  loan. This is not a Kentucky mortgage loan approval or commitment to lend. The actual fees, costs and monthly payment on your specific loan transaction may vary and may include additional fees and costs.
  • For loans with less than 20% down payment borrower-paid mortgage insurance may apply.
  • These Kentucky  mortgage rates are based on a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit profile up to the time of closing.
  • FHA

    • Kentucky FHA loans require both an upfront and an annual mortgage insurance premium. The premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling, and other factors. All Kentucky FHA loans require a minimum credit score of 640
  • Jumbo

    • Kentucky Jumbo Mortgage  rates are higher for borrowers who do not meet the criteria for Conventional Mortgage Loans. All Jumbo loans require a 680 or higher score and a maximum loan to value of 80% 
  •   VA Loans
                Kentucky VA loans require a funding fee upfront paid to VA in the form of mortgage insurance .he premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling   factors. Kentucky VA loans require a minimum credit score of 620
  • USDA Loans
                         Kentucky  USDA loans require a funding fee upfront and a monthly mortgage insurance premium paid to RHS/USDA. The premium varies based on the loan characteristics, your credit score,    and other factors. Kentucky USDA loans require a 640 minimum credit score. 

Free Credit Report and Pre qualifications available anytime. 

                                                                

.  Joel Lobb (NMLS#57916) is a licensed mortgage loan officer in the state of Kentucky.

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. 


Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage (NMLS #1800) 107 South Hurstbourne Parkway*
Louisville, KY 40222*

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Your Guide to Interest Rate Locks


Your Guide to Interest Rate Locks.

 

Guide to Rate Locks

Locking your interest rate gives you the best chance of receiving what you spent all that time shopping for.

Generally, the terms you are quoted when shopping among lenders represent the terms available to borrowers who are closing their loans immediately.

The quoted terms you receive may not be the terms available to you at closing; weeks or even months later.

Because of this you should not rely on the terms quoted to you when shopping for a mortgage loan unless the lender/loan officer is willing to lock-in the interest rate for you and this rate lock guide will help you do that.

What is an interest rate lock?

Rate locks, lock-ins or rate commitments, are a lender’s promise to hold a certain interest rate at a specified cost, usually for a certain time period, while your loan application is being processed.

Depending upon the loan officer, you may be able to lock in the interest rate and cost you will be charged when you file your application, during processing of the loan or when the loan is approved.

A rate lock given to you at the time of application may be useful because it’s likely to take your mortgage lender several weeks or longer to document and evaluate your loan application.

During this time, the cost of mortgages may go up or down.  But if your interest rate and cost are locked in, you should be protected against increases while your application is processed.

Keep in mind, if the lender finds information which is different then your original application the interest rate lock could well be voided and cause your interest rate and cost to go up substantially.

If you lose the rate lock you may not be able to afford the higher interest on the mortgage and thus lose the mortgage and the house you’re purchasing.

However, a locked rate could also prevent you from taking advantage of price decreases, unless your lender is able to lock in a lower rate that becomes available during this period. Keep in mind most loan officers/lenders are not able to lower your interest rate once you’ve signed a rate lock commitment.

It’s important to recognize that a lock-in is not the same as a loan commitment.  A mortgage loan commitment is your lender’s promise to provide you with a loan up to a certain amount at some point in the future.

Generally, you will receive a loan commitment from a loan officer only after your application has been approved.  This loan commitment will usually show the loan terms which have been approved, including the loan amount.

How long the commitment is valid, and the lender’s conditions for making the loan such as receipt of a satisfactory appraisal.

Will my rate lock be In writing?

Only a few lenders have specific forms that set out the exact terms of the lock-in agreement.  So, if they don’t offer one upfront, ask them to fill out and sign one or you’ll need to take your business elsewhere.

Others may only make a verbal lock-in promise on the telephone or at the time of application.  Verbal agreements are very difficult to prove and if there’s a dispute the loan officer will undoubtedly win, since there’s nothing in writing.

Some lenders rate lock forms can contain information which is difficult to understand or even hidden in the fine print.  It’s always a wise decision to obtain a blank copy of the loan officers rate lock form to read carefully “before” you apply for a mortgage loan.  If at all possible, show the rate lock form to a real estate professional or lawyer.

Buyer beware, it’s essential to stay on top of your interest rate lock and to make certain you have the interest rate and terms in writing. Never assume the loan officer has locked your interest rate or it’s locked, but in actuality they are floating your interest rate hoping to get a better rebate.

One of their better schemes is to misquote the interest rate in hopes the rate will come down to what they originally quoted you, if it never does they simply try to charge you more right before closing.

We’ve seen it happen so many times with some loan officers or brokers even altering the original terms they quoted you such as raising the margin, adding a prepayment penalty, or changing indexes, caps, or even loan programs without the borrowers knowledge.

Will you be charged for a rate lock?

Generally mortgage lenders do not charge a fee for locking in the interest rate for your mortgage.  Some loan officers may try to charge you a fee up-front, these loan officers should be avoided at all cost.

One of the few times a legitimate fee is charged is when a mortgage borrower needs to have a longer than normal rate lock.

How long are rate locks valid?

Usually the lender/loan officer will promise to hold an interest rate for a given number of days.  To get the predetermined interest rate you must close the loan within that time period.  Rate locks of 30 to 60 days are the most common.

Lenders that charge a lock-in fee may charge a higher fee for the longer rate lock period.  Usually, the longer the period, the greater the fee.

The rate lock period should be long enough to allow for closing.  Before deciding on the length of the rate lock to ask for, have your your lender estimate (in writing, if possible) the time needed to process your mortgage loan.

You’ll also want to take into account any factors that might delay the closing of your loan.  These may include unanticipated construction delays if purchasing a new home.

What happens if the rate lock expires?

If you don’t close your loan within the lock-in period, you might lose the interest rate you locked.  This could happen if there are delays in processing whether caused by you or not.

On occasion, lenders are themselves the cause of processing delays, particularly when loan demand is heavy.  This happens most often when interest rates fall suddenly causing the amount of refinances to skyrocket.

If your rate lock expires, lenders could offer you the mortgage loan based on the prevailing interest rate.  If market conditions have caused interest rates to rise, you will most often be charged more for your loan.

One reason why some mortgage lenders may be unable to offer the interest rate after the period expires is they can no longer sell the loan to investors at the lock-in rate.

When lenders lock in loan terms for borrowers, they often have an agreement with investors to buy these loans based on the rate lock terms.  The agreement may expire around the same time that the rate lock expires and the lender may be unable to afford the same terms if market rates have increased.

How can you speed up the approval of the loan?

While the lender has the biggest role in how fast your loan application is processed, there are many things you can do to speed up approval. Try to find out what documentation the lender will require from you in advance.

Much of the information required by your lender can be brought with you when you apply for a mortgage loan.  This may help to get your application moving quickly through the loan process.

Once you’re done shopping for rates and have decided on a lender, be sure to bring the following documents:

  1. Purchase contract for the home you’re buying (if you don’t have a copy of the contract, check with your real estate agent).
  2. Your bank account numbers, the address of your bank branch and your latest bank statement, plus pay stubs, W-2 forms.
  3. If you are self-employed bring your balance sheets and tax returns for the previous 2 years.
  4. Information about debts, including loan and credit card account numbers and the names and addresses of your creditors.
  5. Evidence of your mortgage or rental payments, such as cancelled checks or mortgage statements.
  6. You’ll need your VA Certificate of Eligibility from the Veterans Administration if you want a VA-guaranteed loan.  Your lender should be able to help you obtain the certificate.

Be sure to respond promptly to your lender’s requests for information while your loan is being processed. It is also a good idea to call the lender and real estate agent from time to time.

It’s always a good idea to keep notes on your contacts with the lender so that you will have a written record of your conversations.

Asking about rate locks

When you’re ready to settle on your loan, you’ll want to get the loan terms that you’ve locked in. To increase the likelihood, it’s important to learn as much as you can about what the lender is promising you before you apply for a loan.

Ask for this additional information when you’re shopping for a loan:

  1. Does the lender offer a rate lock of the interest rate?
  2. When will the lender let you lock in the interest rate?  When you apply?  When the loan is approved?
  3. Will the rate lock be in writing?  If the rate lock is not in writing, you will have no record of the lender’s agreement with you in case of a dispute.
  4. Does the lender charge a fee to lock-in the interest rate?  Does the fee increase for longer rate locks? If so, how much?
  5. Can you float your interest rate for now, and lock in later?
Loan processing time
  1. How long does the lender expect to take to process your loan application?
  2. What has been the lender’s average time for processing loans recently?
  3. Has the lender’s loan volume increased?  Heavy volume might increase the lender’s average processing time.

Joel Lobb (NMLS#57916)

Senior  Loan Officer

502-905-3708 cell

502-813-2795 fax

jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)

107 South Hurstbourne Parkway

Louisville, KY 40222