3. View General Answer
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)
Yes, you will need a new appraisal. Provident Funding will choose one of our appraisal
companies to complete the appraisal.
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.
No, Provident Funding will not be able to refinance your loan unless the home has
not been listed for sale within the last six months.
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 $10,000.
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.
Yes. Provident Funding requires a new appraisal on a cash-out refinance. Provident
Funding will choose one of our appraisal companies to complete the appraisal.