FAQ

About Loan Cabin

4 questions

Why choose Loan Cabin?

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We are a modern lender whose mission is to streamline the mortgage process by using technology to provide consumers a quick, simple, and transparent home loan.

As a Loan Cabin customer, you can expect:

  • Aggressive rates quoted in just minutes
  • Initial pre approval in 20 minutes or less
  • Team with extensive experience and knowledge
  • 100% online application process available

Is Loan Cabin a direct lender?

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Yes, we are. We work with all of our customers from originating the loan, processing, underwriting, and finally closing and funding the loan.

Will Loan Cabin service my mortgage?

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No. Once your loan is funded, Loan Cabin will transfer ownership of your loan to an investor who will provide servicing.

Does Loan Cabin offer mortgages in my state?

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We currently originate mortgages in the following states:

  • Alabama
  • California
  • Colorado
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Michigan
  • New Jersey
  • Ohio
  • Pennsylvania
  • Mississippi
  • Tennessee
  • Texas
  • Kentucky

We’re working on growing though out the country.

Loan Types and Products

5 questions

What types of mortgages does Loan Cabin offer?

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We currently offer both fixed and adjustable rates for conventional, FHA, VA and Jumbo loans. Type of properties we will finance:

  • Single-family homes
  • Multi-family homes (1-4 units)
  • Townhouses
  • Condominiums
  • Planned Unit Development (PUD)

At this time we do not offer mortgages for:

  • Multi-family homes (Five or more units)
  • Co-ops
  • Mixed-use properties
  • Commercial properties

Rates

4 questions

How does Loan Cabin determine my mortgage rate?

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Your mortgage interest rate is set by market conditions beyond our control. Mortgage rate factors are also determined by a few factors you can control such as credit score, loan-to-value ratio, loan term and loan size.

Will I get the same rate I was quoted?

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Yes. As long as you provide accurate information to us we will lock the interest rate you were quoted. Please keep in mind interest rates change daily and are always subject to change.

What are points and credits?

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Points, also known as discount points, lower your interest rate in exchange paying for an upfront fee. Lender credits lower your closing costs in exchange for accepting a higher interest rate

Locking

6 questions

What exactly does "locking" mean?

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A mortgage rate lock is an agreement between a borrower and Loan Cabin that allows the borrower to lock in the interest rate on a mortgage over a specified time period at the current market interest rate. Loan Cabin guarantees your interest rate will not change from the offer rate to the closing, as long as you close within the specified time frame and there are no changes to your application.

What if my lock expires before my loan is complete?

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We will extend your lock if it expires before your loan closes. If the loan delay was caused due to any complications on our end, we will waive the lock extension fee.

How long should I lock for?

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Most of our customers lock for 30 days, which is plenty of time to close your loan as long as all parties do their best to close with us. On a purchase transaction, you want to make sure your lock period at least runs through the scheduled date of your closing. On refinance transactions involving the subordination of an existing second mortgage or home equity line of credit we recommend a 45 day lock.

Can I choose a different rate or loan product after I lock?

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Absolutely. Your lock and lock date will follow your property address. Any changes of the interest rate, product, or terms will go off of the day you initially locked the rate in.

What if I need to cancel my lock?

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You are free to cancel your lock at anytime. In order to qualify for new rate pricing, your loan will have to be cancelled a full 30 days in order to opt in to new rate pricing.

If interest rates drop once I have already locked, am I able to get a better interest rate?

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When market conditions improve significantly from the initial lock date, Loan Cabin will allow a onetime renegotiation under the following guidelines. Please contact your mortgage loan originator to see if you are eligible. One float down request per customer and a renegotiation fee will apply.

• Minimum .25% market interest rate improvement for the same or better price to be eligible for float down, comparing original and current price for same lock period and loan data.

Home Purchase Loan Costs

5 questions

Where can I get a Loan Estimate?

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Once you apply with us and provide us with the six key pieces of information to begin your application, we then will review your application, run your credit, and then provide this to you within three business days.

Which third-party fees will I be charged?

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Here is a list of some of the third-party fees associated with a home purchase loan. This does not include other costs.

  • Appraisal fee: A home appraisal must be done by a licensed appraiser from our appraisal management company to determine the value of the property. Once this is completed we will provide you the report for your records.
  • Lender’s title insurance: This fee protects us as a lender against problems with the title of your property.
  • More title fees: You will see small miscellaneous title fees charged by the title company of choice. These are charged by the title company for things such as document processing, wire fees and closing fee.
  • Real estate transfer taxes: Local and state governments charge a transfer tax when real-estate is transferred or sold from one entity to another.
  • Recording fees: A fee charged by your city or county to officially record the sale, so that is becomes a matter of public record.
  • Settlement: This fee is paid to the settlement or escrow agent for coordinating the handling and disbursement of funds between the buyer and seller.
  • Owner’s title insurance: It ensures you are protected if someone later makes a claim against the title of the property. Protects your financial investment in the home.

When will I need to pay these costs?

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Closing cost are due when you sign your final documents. You will most likely wire the funds to the title company that day, or bring a cashier check. Personal checks will not be accepted.

Refinance Loan Costs

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How much will my closing costs be?

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Your closing cost will vary depending on your loan scenario. The below are closing cost you should expect lender by lender :

 

Appraisal fee

Title insurance

Escrows

Prepaids

What fees and costs can I expect with Loan Cabin?

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You the customer can choose to pay discount points to buy down your interest rate, or you are allowed to choose a higher rate to off set third part closings cost. You are responsible for all third party closing cost such as title settlement fees, recording charges, and appraisals. You will see these charges will be the same lender by lender.

 

When will I be expected to pay fees?

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All closing cost will be paid through the loan or at the closing. The only exception to this is the appraisal fee. The appraisal fee is $405-$550 that is paid up front to a third party company to obtain the appraisal report. Once we receive the report you will get this right away.

What will be the payoff amount of my current mortgage?

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Your payoff amount is how much you will actually have to pay to satisfy the terms of your mortgage loan and completely pay off your debt. Your payoff amount is different from your current balance on your mortgage statement or credit report.

Pre-Approval Letters

6 questions

What is a pre-approval letter?

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A pre-approval letter is a document from us stating of how much money we are willing to let you borrow to pay for a house.

How do I get a pre-approval letter?

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Once a mortgage loan originator on our team reviews  your credit report, income docs, and assets we will determine the right amount for your pre approval.

How long does it take to get a pre-approval letter?

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Once a mortgage loan originator reviews all your documentation that you have provided such as W-2s, Check stubs, Credit, and bank statements  we can get you the pre approval letter within hours.

Who can I contact if I have questions about my verified pre-approval letter?

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Any questions or concerns on your pre approval letter you may contact your mortgage loan originator who issued you your pre approval letter.

Loan Process

6 questions

Will I have a point of contact at Loan Cabin?

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Yes. We will team you up with one of our licensed mortgage loan originators. You will be able to reach one of our mortgage loan originators at anytime throughout the loan process. Below are Loan Cabin’s hours of operation:

•Monday-Friday: 8:30 AM – 7 PM CST

What do I need to do to lock my rate?

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Once you have decided to work with us and you like the interest rate and terms of the loan provided by your mortgage loan originator, advise them you would like to lock the interest rate in and we will secure your rate on a 30, 60, or 90 day lock depending on when you will close.

How quickly can I close my loan?

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Loan Cabin usually closes loans within 21-30 days. We encourage customers to provide us with all the proper documentation up front so we can make the process efficient and simple for you.

Do I need to have an escrow account?

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An escrow account is part of your total monthly mortgage payments, but go towards things like your property tax and home owners insurance. We do recommend to do this as it makes sense for your lender to make these payments for you so you do not have to worry about them. However, escrow accounts are not required on all mortgage loans. Conventional loans do not mandate you to have an escrow account unless you put less than 20 down payment on your home loan.

Can I transfer my current escrow account?

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Unfortunately No. Any escrow balance with your mortgage servicer will be refunded to you by them in 2-3 weeks time.

Is my data Secure?

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Absolutely.

Loan Cabin understands the importance of keeping clients information private and confidential. At Loan Cabin, customer service, trust, and Integrity is a high priority. As a result, we have adopted the following privacy principles:

We recognize and respect the privacy expectations of our customers as well as the need to collect and use customer information in an appropriate and responsible manner. We collect, retain and use information about individual customers as allowed by law only when we believe it to be useful to our business operations or to provide products, services and other opportunities to our customers. We seek to ensure that a customer’s financial information is accurate, current and complete. We have procedures in place to respond to requests to correct inaccurate information in a timely manner. Our employees have access to personally identifiable customer information only if they have a business reason for knowing such information. The importance of confidentiality and customer privacy is emphasized to our employees and appropriate disciplinary measures are taken to enforce employee privacy responsibilities. We maintain security standards and procedures regarding unauthorized access to customer information. We do not share personally identifiable customer information with unaffiliated third parties except as necessary to operate our business, comply with applicable laws and regulations or make available products, services and other opportunities to our customers. If we share personally identifiable customer information with an unaffiliated third party as part of our business operations, we require the third party to maintain the confidentiality of the customer information. We appreciate your business and look forward to continuing to provide you with the finest financial products and services available.

Credit Scores

9 questions

How does my credit score affect my mortgage?

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Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Typically, the higher your score, the lower the interest rate you will qualify for.

How can I get my credit report?

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You are entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies.

What is a hard credit check?

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hard inquiry, or a “hard pull,” occurs when you apply for a new line of credit, such as a credit card or loan.  Hard inquiries show up on your credit report and can affect your credit score. So it’s important to understand when they happen, how they’ll impact you and why it’s best to keep them to a minimum.

What if I think my score is incorrect?

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If you think there’s a mistake in your credit scores, you can contact the bureaus direct below :

Equifax
Equifax.com/personal/credit-report-services
800-685-1111

Experian
Experian.com/help
888-EXPERIAN 888-397-3742

Transunion
TransUnion.com/credit-help
888-909-8872

What if I don't recognize a credit line that's listed on my report?

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If you are still unsure, you should contact the companies directly. They should be able to provide you with further information on what the tradeline is and why its there.

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How do multiple credit checks work?

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If you are shopping for a mortgage loan, generally multiple hard inquires with a certain time period for a home loan are counted as one inquiry. The period of time may vary depending on the credit scoring model used, but its typically from 14 to 45 days.

How do you choose which credit score to use?

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There are three primary credit reporting agencies: Equifax, Experian and TransUnion. Each has its own credit score and its own range of low to high credit scores.

  • Equifax (300-850)
  • Experian (360-840)
  • TransUnion (300-850)

Lenders generally use the middle score when pre approving your home loan. Loan Cabin will use the middle score of the three to determine your interest rate and how much you qualify for.

What if I’m applying with a co-borrower?

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Loan Cabin will use the lower of the two middle scores between the co borrower and borrower when determining the interest rate the customers qualify for.

Appraisals

9 questions

What is an appraisal?

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An appraisal is a licensed appraiser’s opinion of a home’s market value based on comparable recent sales of homes in the neighborhood.

Why do I need an appraisal?

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Mortgage lenders always require a home appraisal before they will issue a mortgage because we want to protect our investment. For example : If the actual market value of a property is lower than the sales price and if the buyer defaults on the mortgage, the lender will not be able to sell the property for enough money to cover the loan.

Can I use or transfer a recent appraisal?

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Unfortunately, no. Loan Cabin prefers to be compliant and use our preferred appraisal management company to ensure the appraisal was done properly and compliantly.

I know an appraiser. Can he or she complete my appraisal report?

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Unfortunately, no. We the lender must choose the appraiser using our chosen appraisal management company.  An appraisal management company is an independent real estate appraisal company hired by lenders to perform valuations on potentially mortgaged properties.

How long does an appraisal inspection take?

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The appraisal inspection itself can take anywhere from 20 minutes to a couple hours depending on the size and details of the property. Here the appraiser will evaluate if your property is in good, fair, poor, or average condition.

What is the difference between a home inspection and an appraisal?

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home inspection only examines the condition of the home when making the assessment. A home appraisal considers the condition of the home, comparable home prices, lot size, home features, area crime rates and school zones.

How does the appraiser determine the value of my home?

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A home appraisal is a licensed or certified appraisers opinion of a homes Value. The appraisal is based on research of recent sales of comparable homes in the area, an analysis of the property and the appraisers judgement.

If the appraised value of my home goes up, will this affect my taxes?

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The simple answer is No. Property Taxes are based off the county assessors value and an appraised value is determined by a professional appraiser.

What does an appraisal report look like?

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Depending on the property type, an appraiser will prepare a specific report.

• Single family homes: Uniform Residential Appraisal Report

• Condominiums: Individual Condominium Unit Appraisal Report

• Multi-family homes: Small Residential Income Property Appraisal Report

A copy of your appraisal report will be shared with you once we receive it.

Loan Servicing

5 questions

How will my loan be serviced after closing?

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Loan Cabin will service your loan for a short period after it closes, usually about 30 days. Typically 15 to 30 days after Loan Cabin will sell your loan on the secondary market and transfer loan servicing to one of Loan Cabins investors.

After that, we will transfer your loan to a permanent servicer. We have multiple servicers and mortgage investors including major US banks, government-sponsored entities, publicly-traded mortgage companies, and specialized servicing firms. We collect third-party reviews and survey our borrowers post-transfer to ensure the permanent servicers are quality partners.

I thought Loan Cabin is a direct lender, not a broker

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What a mortgage broker does is they facilitate originations for other financial institutions. Brokers are middlemen between the customer and the lender they send your loan to.  Loan Cabin closes mortgages in our own name and uses our own funds to close your loan. This means we are the lender and you will work with us and only us throughout the process.

As a direct lender, we originate your application, underwrite the loan in house, close, and then fund your loan using our own funds.

We try to be fully transparent to all our customers.  You can always ask your mortgage loan originator about your loan’s permanent servicer, or email hello@loancabin.com

How do I make my first payment?

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After your loan closes, your loan closing documents will have all instructions on to who and where to make the first payment to.

In some cases, your first payment will be made to Loan Cabin. Loan Cabin will contact you via email if this is the case and provide you with the proper steps to make your payment to us. Once your loan is sold or transferred to the permanent servicer, the servicer will send proper documentation of this along with a service transfer letter stating they have acquired your loan.

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Can I set up automatic payments with Loan Cabin?

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For your first payment to Loan Cabin, we will request that you mail us a check for the one-time payment as your loan will very likely be transferred to a permanent servicer before the second payment is due. Once your loan is transferred you will be able to setup automatic payments with the servicer.

Will Loan Cabin help me if there are concerns with my transfer?

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Yes, of course we will. If you have any concerns please email hello@loancabin.com. We will get in touch with the permanent servicer right away and resolve the issue on your behalf.