What should I expect after I have submitted my application?
After you have submitted your e-qualification information you will immediately receive a qualification notice. If we need to manually review your information you will receive an e-mail within 48 hours regarding your qualification status.
Once you have been pre-qualified you may call us @
1-909-884-0584 to put your loan into process. At that time we will require a Visa or MasterCard number. No charges will be applied to your account unless you cancel your loan or your loan is declined. If either of these two events occur you will be charged for the courier fees incurred by Equity Funding Group on your behalf up until that point.
Within three days you will receive a packet of information which includes a list of the documents we will need from you. This package should be returned to us within two days in the Airborne Express envelope provided. Please be sure to include all the documents we request, as any missing documentation will delay the process. It is imperative that you return your borrower package to us in the time allowed so that we can begin processing your file. If your loan has been locked and your package is delayed we will not be able to assure you of a timely close.
Five days after your loan process is initiated we will order your title and escrow work with the company you request, or with Stewart Title (if no other company is specified). If you cancel, or are denied loan approval after title work has been ordered, you may be responsible for preliminary title fees charged by your title company. When we receive your documentation package we will then order your appraisal. The cost of your appraisal will be displayed on your loan status page. You will be responsible for paying the appraiser at the time of your appointment.
As paperwork is received your file is processed and reviewed. When all documents, titlework and the appraisal are in place your loan will be underwritten. After your loan has been underwritten you will be ready to close. At this point your escrow company will be contacting you to set up a closing date and time. The closing agent will be able to give you your final closing figures at the time you set up your closing.
Loan Status Function
The loan status function allows you to check your loan's progress at any time. You will also automatically receive e-mail from us as changes occur in your loan status.
Please be sure to include your private password and e-mail address where requested on the application. This information is necessary to set up your loan status page.
What is a Good Faith Estimate?
This is a preliminary estimate of the fees associated with closing your loan. This estimate is the basis for the final figures you will receive from the Escrow Company prior to closing. Description of Fees Found on the Good Faith Estimate
Loan Origination Fee- A fee charged to you by the mortgage broker for placing the loan. The fee is a percentage of the loan amount. Typically this fee is 1% and may be combined with the discount points charged. At Equity Funding Group we charge from .50% to .625% and list this fee as a separate item.
Discount Points- This is a one-time fee charged by the lender on loans that have an interest rate which is lower than the "market rate". As the interest rate charged decreases the discount points increase.
Rebate- Listed as (-) discount points. This is a credit to you that is applied against your closing costs. This credit increases as the interest rate charged increases.
Appraisal Fee- This is paid by you directly to the appraiser at the time of the appointment. Appraisals can cost from $200 to $600 depending on where you are in the country and the type of property involved. We contract with local appraisers and always attempt to arrange the most timely and cost effective appraisal for you.
Tax Service Contract- Required investor charge of $70 to research the tax history of your property.
Underwriting Fee/Lender Review- A $75 fee which pays for the underwriting staff to review your loan and make sure that the documentation in the file conforms to lender guidelines.
Administrative Fee- A fee of $495 is charged by the lender to cover their administrative costs and costs associated with handling your loan.
Flood Certification- $19 certification from FEMA to show whether your property is in a flood zone. This is required on all properties.
Computer Loan Processing Fee (CLO)- This fee of $395 pays for all of the costs associated with processing your loan. Included in this fee is the cost of your credit report and credit review. We will notify you of any derogatory accounts or liabilities that do not correspond to the information that you provided on your application.
Interest- Interest must be charged from the day your loan funds to the first day of the next month. On your Good Faith Estimate we assume 15 days of interest.
Wire Transfer fee- A fee that may be charged through the Escrow Company by the bank for wiring your funds.
Private Mortgage Insurance- On loans over 80% LTV and on certain other types of loans, Private Mortgage Insurance is required. This insurance is paid by you monthly and protects the lender should you default on your loan. If your loan requires PMI your Rate Quote screen will list the monthly amount.
Reserves Deposited With the Lender- In order to protect themselves against borrowers defaulting on their taxes and insurance the lender requires that an escrow account be established to pay your taxes, hazard insurance and PMI, if applicable. At closing you will be required to bring in a number of month's worth of estimated taxes and insurance payments to establish reserves in the account. After reserves have been established, the lender will collect a predetermined dollar amount monthly as part of your mortgage payment. These funds provide the pool from which the lender then pays your taxes and hazard insurance on an annual basis. In some instances, your taxes and/or hazard insurance payments may be due prior to your first mortgage payment to the new lender. If this is the case it will be necessary for you to make the payment that is currently due. The lender will then begin payments subsequent to that. These funds are not calculated into the Good Faith Estimate unless they can not be waived.
Cost to Waive Impounds- If your LTV is 80% or less then the lender offers an option to waive the tax and insurance reserve account requirements. This is a one-time fee of .25% of the loan amount. You may choose this option if applicable.
Escrow/Attorney Fees- These fees are charged by the escrow company, or attorney, for handling all the paperwork and financial transactions associated with your closing. For good faith estimate purposes these fees are broadly estimated on escrow fees quoted from Chicago Title. These fees vary greatly from state to state and are based on loan amount and type of property. If a survey, quit claim deed, or subordination agreement is required there may be additional charges. City/county taxes may also be charged if applicable. For a better idea of what your exact escrow/attorney fees will be, please contact your escrow company.
Title Insurance- A lender requirement, title insurance guarantees that your home has no outstanding liens. This fee varies greatly from state to state and for good faith estimate purposes is broadly estimated on fees quoted from Chicago Title. If a survey, quitclaim deed, or subordination agreement is required there may be additional charges. City/county taxes may also be charged if applicable. For a better idea of what your exact escrow/attorney fees will be, please contact your escrow company.
Recording Fee- This $50 fee is for recording your deed of trust, assignments, grant deeds, or any other documents that need recording.
Courier Fees- These fees average $60 and cover the costs of overnight mail charges and courier fees for your documents.
Locks
What Is a Lock?
Because mortgage rates change on a daily basis, lenders offer you the ability to "lock" a rate and discount point structure for a certain period of time. If interest rates rise during your lock period, the lender is required to close the loan at your locked rate. Conversely, if rates decrease during the period you are obligated to honor your locked rate.
When Can I Lock?
After you are pre-qualified you may put your loan into process. At that time you may choose to lock your rate or you may continue to watch the market and lock at any time prior to your final closing documents being drawn. (This is called "floating"). Lock request can be made M-F from 10:00-4:00 PST by calling us at (909)
884-0584
How do I Know My Lock Has Been Confirmed?
Generally locks are confirmed the day they are requested via e-mail to you from your loan status screen. However, during very volatile market periods there may be changes during the day that affect your lock request. You should not consider your rate locked until you receive your e-mail or loan status confirmation.
Can I Change My Lock?
Please consider carefully the timing of your lock request. Unfortunately, if you have a confirmed lock and interest rates decline Equity Funding Group can not renegotiate your lock with the lender. You should only lock a rate when you are certain that you are comfortable closing your loan at that rate.
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