- How much will I need to pay for closing costs?
- How much can I afford to borrow?
- Can I get pre-approved for a mortgage?
- How long does it take to get pre-approved?
- What is the minimum down payment allowed?
- Are rate locks transferable to a different property?
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 the Lender 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 us:
- Fees charged by Provident Funding:
- Lender Commitment Fee: $650 to $800
- Appraisal Fee: $150-$1,500 (price may vary due to property state, appraisal type and property value)
- Fees to Third Parties:
- Title and Closing Fees: $1,500-$7,000 (price may vary due to loan amount, property state and purchase price.)
- Notary, Recording, and Delivery Fees: $25-$700 (Charged by the closing agent to pay for costs associated with notary services, recording of legal documents, and delivery of loan papers.)
- Local transfer/mortgage tax and similar taxes: Varies by state.
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 and your current financial situation. More importantly, you need to ask yourself how much can you comfortably borrow. The amount you qualify for is based on three main factors: 1) your debt-to-income ratio which is the amount of your total monthly indebtedness divided by your gross monthly income, 2) the amount of cash you have for the down payment and the closing costs, and 3) your credit rating.
3. Can I get pre-approved for a mortgage?
Yes. To get pre-approved for a purchase loan, please contact us at: 1-732-823-5503 and we will connect you to a licensed Mortgage Consultant. We 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, we can provide you with a pre-approval decision within 3 business day.
5. What is the minimum down payment allowed?
The minimum down payment allowed 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 1-732-823-5503.
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.