Answers to the questions buyers ask most.

How can I verify that LenditHome is an approved lender licensed in my state?

There are two simple ways to verify this.

First, review the licensing page on this website. Second, visit NMLS Consumer Access and verify that your loan officer and LenditHome are licensed to do business and in good standing in your state.

How do I take advantage of the home loans offered by LenditHome?

There are four simple steps.

1. Apply for the loan. 2. Send in the requested documents. 3. We process your file and calculate the closing figures for your new loan, and your loan officer reviews the final numbers with you. 4. When we are ready to close, we schedule a signing at the title company office, or a local notary can meet with you. Whichever is easiest.

How long does the whole process take?

It varies with the complexity of each scenario. The most common length of time is 20 to 35 days from the time you are pre-approved. Most closings run about 30 days, and when a faster timeline is needed, we can close in as little as two weeks.

Can I apply for a loan online with LenditHome?

Yes. Use the Apply Online button at the top of this website. Your loan officer is notified the moment you submit, and they get to work on your request. You can also start with the Check If You Qualify tool on this site, and use the free debt to income and loan to value calculators to run your own numbers first.

What does it mean to be pre-qualified versus pre-approved?

A pre-qualification is based on basic information you provide. It shows which loan programs you may qualify for. A pre-approval goes further. The lender has collected, verified, and presented your information for underwriting and approval. Sellers take a pre-approval more seriously, because the verification is already done.

Is there a difference between a credit score and a FICO score?

Yes. The three credit bureaus, Equifax, Experian, and TransUnion, compile information about your borrowing habits into detailed credit reports. Several companies then create credit scores from that data. The FICO score, created by the Fair Isaac Corporation, is the most commonly used credit score. Lenders use it to judge your dependability as a borrower.

How do I establish credit?

You need at least one credit account in your name to have a credit score. There are several ways to get that first account.

Apply for a secured credit card. If you are building from scratch, this is usually the starting point. Get a co-signer for a loan or an unsecured card, understanding that the co-signer is responsible for the full amount if you do not pay. Or become an authorized user on a family member’s card. You build credit history without being legally obligated for the charges.

Once an account is open, always pay on time. Keep balances low, ideally paying in full each month, and never carry a balance greater than 30 percent of your credit limit. A score can usually be calculated after three to six months of activity. Small purchases paid in full each month build strong scores over time.

What should I avoid with my credit while purchasing a home?

Do not open any new lines of credit during the purchase process. That means no new car and no new credit card. Avoid large purchases, and do not run up high balances on your existing cards or buy furniture and appliances on credit.

Do not change jobs without talking to your loan officer first. Do not allow new credit inquiries after loan approval. And give earnest money through the title company or escrow, not directly to a seller.

What is an interest rate, and what does APR mean?

Your interest rate is the monthly cost you pay on the unpaid balance of your home loan. The Annual Percentage Rate, or APR, includes your interest rate plus additional costs and prepaid finance charges, such as the origination fee, points, private mortgage insurance, and underwriting and processing fees. Your interest rate sets your monthly payment. The APR is a universal measurement that helps you compare the true cost of loans from different lenders.

How is LenditHome able to offer competitive interest rates?

We specialize in a smooth loan process from start to finish, and we work to be as competitive as possible on rates and terms. We shop your scenario and present the pros and cons of each option, so you can choose the loan that fits your needs best.

How long is a loan rate offer good for?

Mortgage rates change every day, sometimes more often, with the market. The only way to guarantee a rate is to lock it. Once we receive your initial packet and you give us the green light, we secure your rate. A lock is usually guaranteed for 30 days, and it can be shorter or longer depending on your request.

What is the difference between a front end ratio and a back end ratio?

The front end ratio is your monthly mortgage payment, including principal, interest, taxes, and insurance, as a percentage of your gross monthly income. If you earn $10,000 a month and your housing payment is $2,000, your front end ratio is 20%.

The back end ratio adds your other monthly debts. Take the housing payment, plus the minimum payments on credit cards, car payments, student loans, and any other monthly debt on your credit report, and divide by gross monthly income. In the same example, two $500 car payments and $500 in card and student loan payments bring the total to $3,500, which is a 35% back end ratio. Underwriters use both ratios to confirm you qualify for specific loan programs. You can run your own back end ratio on our debt to income calculator.

What is the difference between mortgage insurance and homeowners insurance?

Mortgage insurance protects the lender against the risk of a borrower defaulting on the loan. It can be public or private depending on the insurer, and some loan programs, including FHA, require it.

Homeowners insurance protects you. It provides financial protection against loss from disasters, theft, and accidents. Most standard policies include four types of coverage. The structure of your home. Your personal belongings. Liability protection. And additional living expenses.

Is PMI or mortgage insurance required with my home loan?

It depends on the loan program you choose. Some programs require it and others do not. Your loan officer will present the pros and cons of each program and let you make the choice that fits your needs best.

Are there any prepayment penalties?

Most loan programs do not have prepayment penalties. As with mortgage insurance, it depends on the program you choose. Your loan officer will present the pros and cons of each program before you decide.

Are there any out of pocket costs?

Other than costs like an appraisal and a termite report where required, we have loan programs that do not require out of pocket costs. For these programs there is no upfront application fee, no deposit, and no fee to lock a rate. If you choose to buy down your rate, or decide not to roll closing costs into your loan, you may bring funds to closing. That choice is completely yours. We disclose and discuss every fee up front, so there are no surprises with your loan.

If I refinance, how does the escrow refund work?

After closing, we pay your current loan in full. Any money your current lender holds in your escrow account is refunded to you by that lender. We do not control their timeline, but a refund check is typically sent 2 to 3 weeks after the loan is paid off. Where necessary, we set up a new escrow account for your new loan.

If I refinance, which mortgage payments will I skip?

Typically, you skip the mortgage payment in the month that you close, and you may also skip the following month’s payment. It depends on the loan program and on when underwriting approves your loan for closing.