1. What is a lock commitment?
A lock commitment is a written agreement between you and InterFirst, entitled a Rate Lock Confirmation, which guarantees a specific interest rate at a particular price based on the loan characteristics selected if the loan closes within a set period of time.
2. When can I lock my rate?
On Refinance transactions, after the loan is pre-approved by InterFirst’s Underwriter, you may lock your over the phone with a Mortgage Consultant (MC).
On Purchase transactions, once your application has been submitted and preapproved by InterFirst’s Underwriter and you have a fully executed purchased agreement for the house you are buying,
Once your loan is locked, you must close and fund within that lock period for your rate lock to be guaranteed. When you choose to lock in your rate, you will be provided with a Rate Lock Confirmation via email or fax from your InterFirst Mortgage Advisor. Your Rate Lock Confirmation will detail the loan terms you have selected.
3. Can I change my loan’s rate or loan program once I have already locked?
If for some reason you want to select another rate on the same or a different loan program, InterFirst will accommodate your request. InterFirst will use the rate sheet from the day you first locked to determine the price (points/credit) associated with your newly selected rate and/or loan program. Such changes may result in the re-approval of your loan and/or a longer processing time. As a result, if your loan does not fund by the lock expiration date, InterFirst reserves the right to re-price your interest rate and/or lender origination points/credit.
4. What happens to my rate if the loan does not fund within the lock period?
Upon locking your interest rate, you will have agreed to specific tasks and due dates in order for us to approve and fund your loan within the rate lock period. If your lock commitment expires prior to funding due to delays in our receiving the documentation and/or information necessary to approve and fund your loan, your loan will be subject to worse case pricing. Worse case pricing is calculated by comparing pricing from the original lock date to current pricing and then selecting the higher of the two.
5. How can I check the interest rates InterFirst is currently offering?
You can view daily interest rates online at www.interfirstlending.com or by calling InterFirst where you will be put in contact with a licensed Mortgage Advisor at (408) 418-3259.
6. Who locks my rate?
Your Mortgage Advisor (MA). The rate and price you receive will be based upon the current rate at the time when you speak with your Mortgage Advisor(MA).
7. How long is my rate locked?
Refinance rate locks are valid for 30 days. For more details please consult your Mortgage Consultant.
Purchase rate locks are valid for 30, 45 or 60 days, depending on the rate lock period selected at the time of locking.
8. Can the rate lock period be increased or decreased after I have selected a rate lock period and locked a rate on my purchase loan?
Your rate lock period may be extended; however, you will be subject to Worse Case Pricing. Worse Case Pricing is calculated by comparing pricing from the original lock date to current pricing and then selecting the higher of the two.
9. Do you offer Float down rate option?
Yes with certain stipulations. Please speak to your Mortgage Advisor.
10. What are third party fees?
Third party fees are any fees associated with the loan that are charged by parties other than InterFirst. Generally, third party fees may include appraisal fees, title and closing fees, notary fees, recording fees, delivery/courier fees, or transfer taxes.
11. What is an escrow/impound account?
This is an account established with the lender to pay your property taxes, homeowner’s insurance, flood insurance (if required) and mortgage insurance (if required) when they become due. If you have an escrow/impound account, then your regular monthly mortgage payment will include principal, interest and an escrow payment.
12. Do I need an escrow/impound account?
Lenders only require an escrow/impound account when your loan-to-value ratio exceeds 80%. If your property is in California, we will only require an escrow/impound account for your taxes and insurance when your loan-to-value exceeds 90%.
13. Will I receive a better rate or price by electing to have an escrow/impound account with my loan?
14. How long does the loan process take?
For a refinance loan, the process should take 30 days or less from the time you lock in your interest rate to the time your loan is funded. Upon locking your interest rate, you will have agreed to specific tasks and due dates in order for us to approve and fund your loan within a 30 day period.
For a purchase loan, the process usually takes 30 days to complete. However, the timeline may vary based on the previously agreed upon close of escrow date between you and the seller, the loan program you select and the state in which your property is located. Upon locking your interest rate, you will have agreed to specific tasks and due dates in order for us to approve and fund your loan within the rate lock period and on your previously scheduled signing date.
15. Can I choose the appraiser?
InterFirst does not allow customers to choose their own appraiser. We will order all required appraisal services from one of our national appraisal vendors to ensure a quality product is provided at a competitive price.
16. Can I receive a copy of the appraisal?
Yes. Once the appraisal is complete a copy will be e-mailed to you directly.
17. Can I receive a copy of my credit report?
No. InterFirst will not be able to provide you with a copy of your credit report. However, you may request a copy of your credit report by contacting your credit reporting agency (CRA).
18. Does InterFirst charge an upfront fee/deposit?
InterFirst collects a $385 to $799 upfront deposit (depending on the loan program you are applying for) on all loans that require a new appraisal.
19. What is the loan-to-value ratio (LTV)?
Loan-to-value (LTV) is a ratio that is determined by comparing the loan amount against the value of the property or the sales price, whichever is less. The LTV is one consideration in qualifying you for a loan. To calculate the LTV, divide the amount you are borrowing by the value of the subject property or the purchase price, whichever is less. For example, if you are purchasing a property that is selling and appraising for $200,000 and you would like to borrow $100,000, the LTV is 50%.
20. What is private mortgage insurance (PMI)?
Private mortgage insurance (PMI) is a type of insurance that protects the lender in the event a borrower does not make their payments in a timely manner, resulting in loan default and potentially foreclosure. For most loan programs, PMI is required if the loan-to-value ratio is greater than 80%.
21. Can I select a higher rate in lieu of paying PMI?
InterFirst does offer this option. Please contact your dedicated Mortgage Advisor.