Locking your interest rate is one of the initial steps of the loan process. At Home Loan Enterprise, we want to provide the best rates and fees possible for your loan. To achieve this mission, we offer the fastest and most up-to-date rates through our state of the art technology.
Once you give the consent to lock, your interest rate will be locked in for 30-45 days*. You may lock your loan Monday through Friday 9:00 am - 5:00 pm PST, excluding bank holidays.** The appraisal must be ordered and paid by the time of locking. A complete appraisal order form must be submitted when you decide to lock. If for any reason your lock has expired and the market has changed adversely, additional charges will be applied. However, if the market remains the same or improves at the time of expiration, the original lock terms will still be valid and honored. Please consult with our loan advisor.
*The duration of the lock period depends on the market conditions.
**Any rate lock request outside of our regular hours can be processed if our lock desk is open, but it is not guaranteed.
When the market changes, the interest rates and fees will fluctuate. This change in fees is reflected as the change in discount points. Hence, when the market changes adversely, discount points and fees will increase for the same interest rate. On the other hand, favorable changes in the market will result in lower discount points and fees.
Please review the quotes carefully each day to see how the discount points move with the market. We do not change our compensation on a daily basis to make more or less money from our investors or clients. The market moves freely and we have no control over how it affects your rates and fees.
The best way for you to get a good interest rate and a low fee is to submit all the required documentation early, get your file pre-qualified, and cleared to lock. This will save you a great deal of money because you will have all the requirements met and the option to wait until rates and fees are within a favorable range. It will also speed up the process, which will eliminate any extension fees due to the rate lock expiring.
There are many fees associated with obtaining a mortgage. For your convenience, we have broken them down into two types of fees: recurring and non-recurring. It is essential to understand the differences between these two fees when you are shopping for your mortgage. By doing so, you will be able to differentiate what the fees actually are versus what is quoted by a mortgage professional. Unfortunately, some mortgage professionals may leave out certain fees or change the quoted fees halfway through the process due to different circumstances.
Home Loan Enterprise is committed to being upfront and honest with your mortgage needs. We do our best to ensure that you are aware of all your fees early in the mortgage process. So that there are no surprises, we will make sure you understand all third party and Home Loan Enterprise fees and what they pertain to. To keep this commitment, the most accurate and up-to-date interest rates and fees are available on our website 24 hours a day and 7 days a week.
Non-recurring fees are one time fees that are always incurred while obtaining a mortgage. In order to provide the most accurate pricing possible, we quote these fees as exact as we can. Keep in mind that most of these fees are not related to our company.
Third party fees, such as title, escrow and appraisal fees, are paid directly to the company that provides the service. We work with many title and escrow companies and have established excellent rapport and working relationships with them. They provide us high quality, reliable and fast service at discounted rates. Even though you are free to choose your own title and escrow companies, we highly recommend working with ours to ensure a smooth and painless loan process. All loan fees and estimated timelines on our website are based on using our recommended title and escrow companies; we cannot make any guarantees if you go with an outside title or escrow company.
The one step that we have no control of throughout your loan process is the appraisal. Neither you, nor the borrower, nor Home Loan Enterprise can choose the appraisal company or appraiser.
Keep in mind that our company fees are a big part of what sets us apart from our competitors. These fees are what you should be comparing between lenders to figure out which company best suites you.
For your benefit, we have listed below different types of non-recurring closing costs:
Recurring fees are fees that exist during and after the loan process. These fees will most likely be paid monthly or even annually. You should not compare these fees between lenders when shopping for a mortgage. Recurring fees will be the same fees paid to your own insurance provider, county tax assessor, and the daily interest you pay for your mortgage. These include:
Please, be sure to review all quotes carefully to determine what fees are being charged so that you can shop for the best option. It is important that you calculate all non-recurring closing costs associated with a specific interest rate and mortgage program. These are the numbers in which you may use to compare with other mortgage companies or banks. Again, the advantage that we have at Home Loan Enterprise is the ability for you to check rates daily on our website.
These fees fluctuate on a day to day or even hourly basis, we have the technology and innovation to keep up with them and deliver this service to you at no extra cost. Many mortgage companies do not have the ability to do this. You will often experience large delays when trying to get multiple quotes from a live loan officer at other companies. This is yet another reason why Home Loan Enterprise should be your first choice when choosing a lender.
The appraisal process is one of the many important steps in obtaining a mortgage. Many of our competitors require an upfront appraisal fee or application fee to start your loan process, while we do not. We will not order your appraisal until we have qualified your file and you had requested to lock or submit to underwriting.
At the time of locking your interest rate, we will require an appraisal payment. Appraisal fees are based on county, home size, lot size, and various other characteristics. The appraiser will contact you and set up a time to inspect your property. If you fail to be available at the time of the appointment, you will be charged a 'trip' fee for the appraiser's time.
During the inspection, the appraiser will take photos of the inside and outside of the home. You must allow the appraiser to view all rooms that are requested. If the appraiser is unable to go into certain areas of the home, the appraisal will be incomplete and the appraiser will have to return at another time to inspect the property again. This will also incur a fee. Please be sure to make all areas of the home available to the appraisal inspector.
After conducting the appraisal inspection, your advisor should receive the completed appraisal report within 1-5 business days. At this time, the advisor will send you a copy free of charge and require that you sign the HVCC (Home Valuation Code of Conduct) disclosure indicating that you received a copy of the appraisal.
At the time of ordering appraisal, you will be required to provide a credit card number. If your loan does not fund due to no fault of your own, you may be able to receive a partial or full reimbursement of your appraisal fee depending on the circumstance. However, you will not be reimbursed for any appraisal fees if your appraised value does not meet the minimum requirement to obtain the mortgage or if you fail to provide the necessary loan documentation in a timely manner.
All mortgage companies including Home Loan Enterprise must abide by the laws of the HVCC (Home Valuation Code of Conduct). Please review the HVCC rules here.
Under no circumstances is any employee of Home Loan Enterprise allowed to speak to the appraiser. Home Loan Enterprise has no relationship with the appraisal management company that employs the appraiser. The appraisal is done in a completely independent manner and there are no ways to influence the appraiser on the value of your property.
You will not have the option to order another appraisal if the first appraisal value is not to your satisfaction. All appraisals are non-refundable. If errors are made, you may request your advisor to see if it is a legitimate error where the value would be drastically changed. In most cases, the value will not change substantially. There is no relation to the appraiser so there will be no incentive for the appraiser to do any job other than giving it the most accurate value in their estimation.
The APR (Annual Percentage Rate) for a mortgage was designed to provide you, the borrower, with a way to compare mortgage rates and fees amongst different companies and banks. The interest rate and APR are usually different and the APR is always higher.
There is always 1-30 days of prepaid interest that is included in the APR calculation. Prepaid interest is calculated by the number of days between the funding date and the end of the month. When shopping for a mortgage, you should look at the loan program, interest rate, and APR for a quick comparison.
Be advised that some banks will calculate APR differently and may leave some fees out. You can dig deeper by asking about the Non-Recurring closing costs and figure out exactly what the fees are down to the penny. Doing this is very helpful in seeing exactly what fees you are being charged for your loan.
The following fees are what are required to calculate your APR:
|Types of Fees||Non-Recurring||Recurring|
|Administration Fee to Lender||-|
|Discount Points Paid to Lender||-|
|Tax Service Fee||-|
|Flood Certification Fee||-|
|30 Days of prepaid Interest||-|
What is not included in your APR:
|Types of Fees||Non-Recurring||Recurring|
|Lender's Title Insurance||-|
|Property Taxes paid to county||-|
|Hazard Insurance paid to your insurance provider||-|
Underwriting takes place when a complete loan package is submitted. By law, you will receive a GFE (Good Faith Estimate) within 3 business days of submitting a loan application. You may view GFE's for free on our website when running a quote here.
The underwriting process takes anywhere from 1-5 business days depending on the current volume and workload. We strive to have the fastest turn-times available in order to save you time and money.
After the file has been underwritten, a decision will be made in which the loan will be approved, denied, or suspended due to lack of documentation. It is imperative that you provide us with the necessary documentation required for approval. Once all documentation has been provided and all requirements are satisfied, our underwriting department will clear the loan and prepare for you to to sign all necessary documents.