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A lock commitment is a written agreement between you and Provident Funding, entitled a Rate Lock Confirmation, which guarantees a specific interest rate at a particular price based on the loan characteristics selected if the loan closes within a set period of time.
On Refinance transactions, after the loan is approved by Provident Funding’s Automated Underwriting (AU) system, you may lock your rate online or over the phone with a Mortgage Consultant (MC).

On Purchase transactions, once your application has been submitted and approved by Provident Funding’s Automated Underwriting (AU) system and you have a fully-executed purchased agreement for the house you are buying, you have the option of using Provident Funding's online lock tool or contacting your Mortgage Consultant (MC) to lock your loan.

Once your loan is locked, you must close and fund within that lock period for your rate lock to be guaranteed. When you choose to lock in your rate, you will be provided with a Rate Lock Confirmation via email or fax from your Provident Funding Mortgage Consultant (MC). Your Rate Lock Confirmation will detail the loan terms you have selected.
If for some reason you want to select another rate on the same or a different loan program, Provident Funding will accommodate your request. Provident Funding will use the rate sheet from the day you first locked to determine the price (points/credit) associated with your newly selected rate and/or loan program. Such changes may result in the re-approval of your loan and/or a longer processing time. As a result, if your loan does not fund by the lock expiration date, Provident Funding reserves the right to re-price your interest rate and/or lender origination points/credit.
Upon locking your interest rate, you will have agreed to specific tasks and due dates in order for us to approve and fund your loan within the rate lock period. If your lock commitment expires prior to funding due to delays in our receiving the documentation and/or information necessary to approve and fund your loan, your loan will be subject to worse case pricing. Worse case pricing is calculated by comparing pricing from the original lock date to current pricing and then selecting the higher of the two.
You can view daily interest rates online at www.provident.com or by calling Provident Funding where you will be put in contact with a licensed Mortgage Consultant at (888) 547-4050.
After the loan is approved by Provident Funding’s Automated Underwriting (AU) system, you may lock your rate online or over the phone with a Mortgage Consultant (MC).

On Refinance transactions, after the loan is approved by Provident Funding’s Automated Underwriting (AU) system, you may lock your rate online or over the phone with a Mortgage Consultant (MC).

On Purchase transactions, once you submit your loan application, your loan is approved by Provident Funding’s Automated Underwriting (AU) system, and you have a fully executed purchase contract for the home you are buying, you have the option of using Provident Funding's online lock tool or contacting your Mortgage Consultant (MC) to lock your loan.

Provident Funding will not honor rate lock requests left in a voicemail or requested via email as rates are subject to change throughout the day. The rate and price you receive will be based upon the current rate at the time when you speak with your Mortgage Consultant (MC).
Refinance rate locks are valid for 30 days. For more details please consult your Mortgage Consultant.

Purchase rate locks are valid for 30, 45, or 60 days, depending on the rate lock period selected at the time of locking.
Your rate lock period may be extended; however, you will be subject to Worse Case Pricing. Worse Case Pricing is calculated by comparing pricing from the original lock date to current pricing and then selecting the higher of the two.
Lenders and mortgage brokers who offer a "float down rate option" often do not offer the best possible price initially. Mortgage brokers may also cancel their rate lock with the initial investor/lender and lock in with a new lender when rates fall. This practice increases rates for the entire industry because locked loans that do not fund cost lenders a lot of money. Provident Funding's business model is designed to offer you the best possible price every day and that is why we do not offer a "float down rate option."
Third party fees are any fees associated with the loan that are charged by parties other than Provident Funding. Generally, third party fees may include appraisal fees, title and closing fees, notary fees, recording fees, delivery/courier fees, or transfer taxes.
Closing costs are expenses incurred by borrowers (and sellers in the case of purchase transactions) when obtaining a new mortgage loan and transferring property ownership. Non-Recurring Closing Costs (NRCC’s) are costs that are only charged in connection with obtaining a new mortgage loan. Examples of NRCC’s would include: origination fee, title insurance fee, settlement agent fee, notary fee, commitment/administration fee, or appraisal fee. Recurring Closing Costs include costs that not only may be charged in connection with obtaining a new mortgage loan, but are also charged on an ongoing basis. Examples of Recurring Closing Costs would include: prepaid interest, property taxes and hazard insurance. Other fees may be included depending on the transaction or your property state.
Yes, closing costs have to be paid on all loans. However, depending on your loan terms and the selected loan program, Provident Funding may pay for some or all of your closing costs in exchange for selecting a higher interest rate.
This is an account established with Provident Funding to pay your property taxes, homeowner’s insurance, flood insurance (if required) and mortgage insurance (if required) when they become due. If you have an escrow/impound account, then your regular monthly mortgage payment will include principal, interest, and an escrow payment. Your escrow payment is based on 1/12th of the annual estimated payments for your property taxes, homeowner’s insurance, flood insurance (if required), and mortgage insurance (if required).
If your property lies within Flood Zone "A" or "V", federal law (FEMA) requires you to maintain and provide proof of flood insurance coverage. The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 prohibit Federal agency lenders, such as Provident Funding, from originating home loans in Flood Zone "A" or "V" unless flood insurance has been purchased by the homeowner and is maintained during the term of the loan.
Provident Funding only requires an escrow/impound account when your loan-to-value ratio exceeds 80%. If your property is in California, we will only require an escrow/impound account for your taxes and insurance when your loan-to-value exceeds 90%.
No. Provident Funding's pricing remains the same, whether or not you choose to establish an escrow/impound account when applying for a loan with Provident Funding’s Retail division.
For a refinance loan, the process should take 30 days or less from the time you lock in your interest rate to the time your loan is funded. Upon locking your interest rate, you will have agreed to specific tasks and due dates in order for us to approve and fund your loan within a 30 day period.

For a purchase loan, the process usually takes 30 days to complete. However, the timeline may vary based on the previously agreed upon close of escrow date between you and the seller, the loan program you select and the state in which your property is located. Upon locking your interest rate, you will have agreed to specific tasks and due dates in order for us to approve and fund your loan within the rate lock period and on your previously scheduled signing date.
Provident Funding does not allow customers to choose their own appraiser. We will order all required appraisal services from one of our national appraisal vendors to ensure a quality product is provided at a competitive price.
Yes. Once the appraisal is complete, a copy will be e-mailed to you directly.
No. Provident Funding will not be able to provide you with a copy of your credit report. However, you may request a copy of your credit report by contacting your credit reporting agency (CRA).
Provident Funding charges a $600 or $850 upfront deposit (depending on the loan program you are applying for) on all loans that require a new appraisal. The deposit will be refunded when the loan is closed.
Loan-to-value (LTV) is a ratio that is determined by comparing the loan amount against the value of the property or the sales price, whichever is less. The LTV is one consideration in qualifying you for a loan. To calculate the LTV, divide the amount you are borrowing by the value of the subject property or the purchase price, whichever is less. For example, if you are purchasing a property that is selling and appraising for $200,000 and you would like to borrow $100,000, the LTV is 50%.
Private mortgage insurance (PMI) is a type of insurance that protects the lender in the event a borrower does not make their payments in a timely manner, resulting in loan default and potentially foreclosure. For most loan programs, PMI is required if the loan-to-value ratio is greater than 80%.
Provident Funding does not offer this option.
Phishing is the attempted impersonation of a legitimate business by criminals to trick victims into giving out their personal information. Documents with the letterhead and logo of legitimate companies are often used to legitimize the fraudulent communication. You should approach unsolicited emails containing requests for personal information with great caution. Always confirm the authenticity of email messages before responding.
  • Be cautious about opening attachments and downloading files from emails, regardless of who sent them. These files may contain viruses or other malware.
  • Rely on common sense. Be suspicious of any offer that seems too good to be true.
  • Be cautious about emails with vague salutations that do not identify you by name.
  • Be suspicious of odd emails asking for personal information, having typos and poor grammar, or sent at unusual non business hours. These are likely fraudulent.
  • Protect yourself by verifying addresses, emails and phone numbers. A local area code does not guarantee that the caller is local. Contact the institution directly if you are still unsure.
The amount you will need to pay for closing costs is determined by many factors, including the loan purpose, loan type, and property state. Based on the interest rate you select, there may be loan points paid to Provident Funding or a credit paid to you to cover part of the non-recurring closing costs associated with the loan. The following is a brief summary of some typical fees incurred when closing a loan with Provident Funding:
Fees charged by Provident Funding
  • Administration Fee: $1,099.
Fees charged by third parties
  • Appraisal Fee: $460 - $1,500 (price will vary based on property state, appraisal type, and property value).
  • Title Insurance and Services: will vary based on loan purpose, loan amount, and property state.
  • Settlement/Closing: will vary based on loan purpose, loan amount, property state, and purchase price.
  • Notary, Recording, and Delivery Fees: will vary by state and county.
  • Local transfer tax and similar taxes: will vary by state and county.
The amount you can afford to borrow is dependent upon the loan’s interest rate and terms.
Yes. To get pre-approved for a purchase loan, please contact Provident Funding at 1-888-547-4050 and we will connect you to a licensed Mortgage Consultant. Provident Funding recommends that you apply for a pre-approval while you are searching for a home. A pre-approval will consider your financial situation to determine if you are likely to qualify based on the estimated loan amount and purchase price. A pre-approval will provide you with security, leverage, and flexibility while you are searching for a home.
Once you have submitted an application online or over the phone, Provident Funding can provide you with a pre-approval decision within 1 business day.
The minimum down payment Provident Funding allows on most conforming loan programs is 5% of the current property value or the purchase price, whichever is less. To find out if you qualify, please contact us at 1-888-547-4050.
Rate locks are not transferable to a different property address. If the property address changes on a locked loan, the lock will be cancelled and a new lock will be required.
Provident Funding does not offer rate locks for longer than 60 days. With this in mind, you should lock in a rate when you feel certain that the house will be in a livable condition within 60 days.
If you decide to refinance your home, you can take advantage of any or all of the following benefits:
  • Lower your monthly payments with a lower interest rate
  • Lock in a fixed term interest rate from an adjustable rate mortgage or vice versa
  • Reduce the term of your loan
  • If you have made a large principal reduction, lower your monthly payments by refinancing the existing balance
  • Reduce your monthly payments by eliminating the need for private mortgage insurance (PMI)
Provident Funding requires an appraisal report on all loans. We will choose one of our appraisal companies to complete the appraisal. It may be possible to obtain a loan product that does not require an appraisal report.
For specific requirements, please contact one of Provident Funding’s Mortgage Consultants at 1-888-547-4050.
Provident Funding offers you the ability to lower your overall monthly housing payment by paying off an existing first and second mortgage. To find out if your new loan will qualify as a rate and term refinance or a cash-out refinance please contact one of Provident Funding’s Mortgage Consultants at 1-888-547-4050.
It may be possible to refinance a property that was previously listed for sale. Please contact one of Provident Funding’s Mortgage Consultants at 1-888-547-4050.
While you may start the application process for a refinance, Provident Funding will not be able to close your loan until your remodeling project is complete.
It may be possible for you to remove a borrower from your current mortgage through a refinance. For specific requirements, please contact one of Provident Funding’s Mortgage Consultants at 1-888-547-4050.
Yes, you may apply for a refinance with additional borrowers, provided he or she qualifies according to our income and credit guidelines. Any person applying for the refinance must also be added to the title of the home.
Provident Funding allows you to use the proceeds from a cash-out loan for any legal purpose. However, the creation of any new liability through the use of the cash-out proceeds must be qualified in the loan process. For example, if you want to do a cash-out refinance on your current residence and use the proceeds toward a down payment on a second home or investment property, you must qualify for the cash-out refinance with the new property mortgage liability included.
Note: Provident Funding requires a cash-out purpose letter for any cash-out amount greater than $50,000.
The maximum cash-out allowable on a conforming loan is $424,100 less any amount owed on the subject property. The maximum cash-out allowed on all Super Conforming products is $250,000. The maximum cash-out allowed on all Jumbo products is $150,000. To find out more about cash-out refinances please contact one of Provident Funding’s knowledgeable Mortgage Consultants at 1-888-547-4050.
Provident Funding requires an appraisal report on all loans. We will choose one of our appraisal companies to complete the appraisal. It may be possible to obtain a loan product that does not require an appraisal report.
For specific requirements, please contact one of Provident Funding’s Mortgage Consultants at 1-888-547-4050.