We realize that home mortgages and refinancing can seem complex and confusing, which is why we’ve provided answers to some of the most common questions we hear. We never want you to feel alone in this process!
Don’t see an answer to your question? Feel free to contact us.
01. / Mortgage Process
Why Loan Pronto?
Loan Pronto is committed to closing your loan in record time by utilizing the newest technology in the industry with the human touch you deserve.
Our digital approach allows you to close your loan quickly (we average 14.1 days to get your loan ready for closing) while avoiding physical paperwork and lengthy in-person trips.
When you work with the Loan Pronto team, you’ll work with a Mortgage Consultant that will understand your unique situation while offering you the best rates, lowest fees, best service and fastest closing in the industry.
As a Loan Pronto customer, you can expect:
Quick, easy access to live rate quotes
You can access real-time pricing 24/7/365 on Loan Pronto’s website.
Pre-approval in minutes
Time is of the essence when you are shopping for a new home. Our online application allows you to apply in 5 minutes and 95% of our pre-approvals are issued within 30 minutes of application. We have qualified Mortgage Consultants available on the weekends.
100% online application and document uploading process
By utilizing the power of technology, you can apply online from your phone, tablet or desktop. From there, all signing is done digitally and all documents are uploaded in your safe and secure portal. We have a fax machine here if you need it, but 98% of our clients choose to never scan, print, or fax a piece of paper.
Our loan officers do earn commission which incentivizes them to get your loan closed quickly, efficiently and pain free
Not paying a Mortgage Consultant commission might sound good in theory, but we want our borrowers to know that our Mortgage Consultants are incentivized to get a loan closed in record time with a mortgage process that they want to tell the world about.
What Mortgage Consultant do you want working on your home purchase that has a hard contract signing date? The one that doesn’t get paid if it closes, or the one that does?
No junk fees or lender fees
We don’t charge junk fees, underwriting, commitment, or application fees on our loans.
What does the Loan Pronto application and loan process look like?
Chat with our loan consultants so they can learn about your situation and provide you with the best options and next steps. We know the right questions to ask so we won’t waste your time.
Our team will talk you through the different options available and arrive at the program and product that best fits your financial goals.
Documents, Lock, and your Appraisal
Once you’ve selected your loan program, you’ll receive an email from our team with a link to eSign all of your disclosures. You can do this from your phone, regular PC or any smart device. You’ll then receive a link to your Digital Portal where you can upload or take pictures of the necessary documents. We usually need 30 days of pay stubs and 2 months of bank statements. Once we get those documents back from you, we’ll lock your rate and order your appraisal (if needed).
With all your documents handled, one of our dedicated Account Managers will help navigate your way through the underwriting process. During this time, we’ll be getting third party verifications on your behalf and preparing all of the legal documentation you’ll need.
Once we get the appraisal and the lender signs off on your loan, we are ready for closing. Most of our customers opt to close their loan at their home after normal work hours which means you don’t have to take off work and close at a random office.
How do you qualify for a loan?
A lender will be looking at your entire financial picture including your job history, credit scores and payment history, checking/savings accounts, and overall financial picture.
Then comes the paperwork! Once your loan process gets started, be prepared to provide proof of:
- Where you work
- Your income
- Any debt you have
- Your assets
- How much you plan to put down on your home
How long does it usually take to close my loan?
Our average time frame to clear your loan for closing is 14 days from your initial application. Most of our loans close within 21 days.
02. / Home Purchase
How much money do I need to buy a home?
Contrary to popular belief, you can get a home with as little as $0 down on a VA loan or 3% down for a conventional mortgage. While 20% down will give you the lowest rate, our Loan Down Payment program offers you the ability to buy a home with much less and still get a great rate.
Should I buy or rent?
We get asked that all of the time. Every borrower’s situation is different but we suggest looking at what you pay in rent and determining if you could own a home for the same amount or less. With rent prices on the rise, many of our clients are surprised they can buy a home with little money down and still have a lower payment than what they pay in rent.
What’s the difference between being pre-qualified and pre-approved?
A quick conversation with your lender about your income, assets and down payment is all it takes to get pre-qualified. But if you want to get pre-approved, your lender will need to verify your financial information and submit your loan for preliminary underwriting. A pre-approval takes a little more time and documentation, but it also carries a lot more weight.
What can I use for my down payment?
Most of our borrowers use money from their checking and savings accounts. Gifts from family members, money borrowed from IRA/401k accounts and equity from a current home you are selling is also allowed.
What is included in my mortgage payment?
A mortgage payment is comprised of several parts: Principal and interest, real estate taxes, homeowners insurance and possibly mortgage insurance.
03. / Mortgage Refinance
Why would I refinance?
- Your rate is higher than the current market rate for the same program
- You are looking to shorten your term to pay off your house more quickly
- You want to cash out some equity to do home improvements, pay off debt or student loans
- Get out of paying mortgage insurance
- Combine a first and second mortgage into one mortgage
Is the refinance process that different than buying a new home?
Not really. You’ll need most of the same documents and you’ll likely need to get an appraisal as well. While they are less deadline sensitive than a purchase our goal is still to get it closed as quickly as possible.
How often can I refinance?
You can refinance as often as you want as long as you are getting a tangible benefit from the program.
What kind of special refinance programs do you offer?
We offer several programs that are offered by FHA, VA, and Fannie Mae / Freddie Mac:
Take your existing FHA mortgage and streamline it into a lower rate and/or lower FHA mortgage premium. This program requires no appraisal, very limited documentation and a shorter underwriting process.
VA Interest Rate Reduction Refinance Loan (IRRRL)
Veterans with existing VA loans can take advantage of this program to reduce their rate and/or term. No appraisal needed and the underwriting process is very brief.
no-cost Refinance Program
Our no-cost refinance program allows you to refinance without the expenses you would usually expect to pay as part of your refinance.
04. / HELOC
What is a HELOC?
HELOC stands for Home Equity Line of Credit. It is a type of revolving credit that allows homeowners to borrow against the equity they have built up in their home.
How does a HELOC work?
When you get approved for a HELOC, you are given a line of credit based on the amount of equity you have in your home. You can then draw from this line of credit as needed, similar to a credit card. You only pay interest on the amount you borrow, and you can borrow and repay as many times as you want during the draw period.
What is the draw period for a HELOC?
The draw period is the amount of time during which you can borrow against the line of credit. Typically, the draw period for a HELOC is 10 years.
How is the interest rate for a HELOC determined?
The interest rate for a HELOC is usually variable and is based on the prime rate plus a margin, which is determined by your credit score and other factors.
What can I use a HELOC for?
You can use a HELOC for a variety of purposes, such as home improvements, debt consolidation, education expenses, or emergency expenses.
How does a HELOC differ from a home equity loan?
A HELOC is a revolving line of credit, while a home equity loan is a lump sum loan. With a HELOC, you can borrow and repay multiple times during the draw period, while with a home equity loan, you receive a lump sum at once and repay it over time. Additionally, a HELOC usually has a variable interest rate, while a home equity loan typically has a fixed interest rate.
05. / Other
What are mortgage points?
Mortgage points, or discount points, are a way to prepay interest to get a lower interest rate on your mortgage.
A mortgage “point” equates to 1% of your loan amount. A good rule of thumb is that each point will buy your rate down .25%.
Discount point could make sense and generally require you to have the loan greater than 5-7 years.
Is mortgage insurance (PMI) bad?
NO! Mortgage insurance allows you to buy a home with as little as 3% down, keeping money in your bank account and allowing you to buy a home that you might not otherwise be able to buy. Mortgage insurance is not nearly as expensive as it used to be. For example, if you were looking at a $500,000 purchase with 10% down and excellent credit, your MI (mortgage insurance) would only be $56 per month.
How do you know which home mortgage option is right for you?
With so many mortgage options out there, it can be hard to know how each would impact you in the long run. Here are the most common mortgage loan types:
- Adjustable-Rate Mortgage (ARM)
- Federal Housing Administration (FHA) Loan
- Department of Veterans Affairs (VA) Loan
- Fixed-Rate Conventional Loan
How much is my home worth?
Use Loan Pronto’s home value estimator to get a FREE analysis of your home! Find out your home value, home equity, see nearby sales and update your home facts and photos.