FAQs

Purchase Transaction

  1. How much will I need to pay for closing costs?
  2. How much can I afford to borrow?
  3. Can I get pre-approved for a mortgage?
  4. How long does it take to get pre-approved?
  5. What is the minimum down payment allowed?
  6. Are rate locks transferable to a different property?
  7. If I am purchasing a home that is still being built and it won’t be complete for more than 60 days from now, when should I lock in a rate?

1. How much will I need to pay for closing costs?
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: $150 - $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.

2. How much can I afford to borrow?
The amount you can afford to borrow is dependent upon the loan’s interest rate and terms.

3. Can I get pre-approved for a mortgage?
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.

4. How long does it take to get pre-approved?
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.

5. What is the minimum down payment allowed?
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.

6. Are rate locks transferable to a different property?
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.

7. If I am purchasing a home that is still being built and it won’t be complete for more than 60 days from now, when should I lock in a rate?
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.

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Other Frequently Asked Questions:
General Mortgage
Rate & Term Refinance
Cash-out Refinance