FAQs

We are a modern lender whose mission is to streamline the mortgage process by using technology to provide consumers with a quick, simple, and transparent home loan. As a Loan Cabin customer, you can expect the following:

• 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

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

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

We currently originate mortgages in the following states:

• Alabama
• California
• Colorado
• Florida
• Georgia
• Illinois
• Indiana
• Kentucky
• Maryland
• Michigan
• Mississippi
• New Jersey
• North Carolina
• Ohio
• Pennsylvania
• South Carolina
• Tennessee
• Texas
• Washington
• Oregon

We’re working on growing throughout the country.

We currently offer 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

A High-Balance Mortgage Loan is a conventional mortgage loan whose loan amount exceeds the conforming loan limits. The Federal Housing Finance Agency (FHFA) establishes specific high-cost area loan limits annually for each county. The conforming loan limit is $510,400, and the high-cost area limit is $765,600 – or 150 percent of $510,400 for a 1-unit dwelling in the continental U.S.

Absolutely. We will do all investment properties that are 1-4 unit dwellings.

Yes, we do offer FHA and VA loans.

No, we do not offer construction or commercial loans at this time.

No, we do not offer home equity lines of credit also known as “HELOCS” or second mortgages.

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.

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

Your monthly mortgage payment typically comprises principal, interest, taxes, and insurance.

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

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 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.

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.

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 ensure your lock period at least runs through the scheduled closing date. On refinance transactions involving the subordination of an existing second mortgage or home equity line of credit we recommend a 45-day lock.

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.

You are free to cancel your lock at any time. To qualify for new rate pricing, your loan must be cancelled for 30 days to opt into new rate pricing.

When market conditions improve significantly from the initial lock date, Loan Cabin will allow a one-time 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.

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

Ask your mortgage loan originator about our NO Lender Fees loan.

Here is a list of 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 property’s value. Once this is completed we will provide you with 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 your 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 protects you if someone later claims the property’s title. Protects your financial investment in the home.

Title insurance protects the insured from a financial loss related to property ownership.  Title companies issue two types of title policies: an Owner’s Policy which covers the homeowner, and a lenders Policy which covers the lending institution. Both insurances are a one time cost- up front when getting a home loan.

By law, you as the customer have the right to select your own provider for these services. If you wish to use your own provider and agree to pay the fee charged by them, we will be happy to work with them.

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.

No, Loan Cabin does not charge any pre-payment penalties.

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

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.

All closing costs 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.

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.

No, Loan Cabin does not require any loans originated by us to require a pre-payment penalty.

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.

We will need your most recent two years W2’s, 30 day recent check stubs, and two months current bank statements. If you are self employed or your income is primarily derived from commissions, we will need your two years personal and business tax returns.

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.

Free. Loan Cabin does not charge any application fees or junk fees.

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.

Yes. This helps us determine your exact credit score and monthly debt obligations so we can be sure you qualify for a loan.

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

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

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.

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.

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.

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

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.

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.

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

A 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 appear 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.

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

Equifax
W: https://www.equifax.com/personal/credit-report-services/
T: 800-685-1111

Experian
W: https://www.experian.com/help/
T: 888-EXPERIAN | 888-397-3742

Transunion
W: https://www.transunion.com/credit-help
T: 888-909-8872

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.

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.

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.

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.

Loan Cabin currently is working with customers with 620 credit scores and above.

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

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.

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

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.

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.

A 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.