Frequently Asked Questions

A home appraisal provides an independent opinion of a property’s market value for the mortgage transaction.

The lender uses that valuation to help determine whether the property provides acceptable collateral for the loan.

For a purchase, the appraisal may help confirm whether the property’s value supports the proposed financing. For a refinance, it may affect the loan-to-value ratio and the amount you can borrow.

An appraisal is only one part of the mortgage review. Your income, credit, debts, assets, and other qualification requirements still matter.

We’ll help you understand whether an appraisal is required and what the results may mean for your financing.

When the selected lender requires an appraisal, we generally encourage addressing it early enough to avoid unnecessary delays later in the transaction.

Appraisals can involve several steps, including ordering the report, scheduling a property visit when necessary, completing the valuation, and reviewing the results.

The process may take longer if the property is unusual, access is limited, or the lender requests additional information.

We’ll help coordinate the appraisal requirements with the lender and keep you updated on relevant developments.

Ordering early doesn’t guarantee the appraisal will be completed by a particular date, but it can provide more time to address unexpected issues.

Possibly. Certain loans may qualify for an appraisal waiver or another permitted property-valuation method.

Whether this is available depends on factors such as the loan program, property information, loan-to-value ratio, automated underwriting results, and lender requirements.

For example, some eligible conventional transactions may receive an automated appraisal-waiver option.

However, not every borrower or property qualifies, and an initial waiver may change if important loan details are updated.

We’ll explain the valuation requirements that apply to your specific mortgage.

A lower appraisal can affect the amount the lender is willing to finance because the property’s appraised value may be used to calculate the loan-to-value ratio.

Depending on the transaction, potential options may include:

• Renegotiating the purchase price: Your real estate agent may discuss this with the seller.
• Adjusting the financing: A different down payment or loan structure may be considered.
• Providing additional funds: You may be able to cover part of the difference if financially appropriate.
• Requesting a review: If there are legitimate concerns about the appraisal, the applicable lender process may allow a reconsideration of value.

Not every option is available in every transaction.

We’ll explain how the valuation affects your mortgage, while your real estate agent can help you understand the purchase-contract considerations.

A home inspection and appraisal serve different purposes.

A home inspection is generally arranged for the buyer to evaluate the property’s condition and identify potential maintenance or repair concerns.

An appraisal primarily evaluates the property’s market value for lending purposes.

Although an appraiser may identify certain property-condition issues relevant to the loan program, an appraisal isn’t a substitute for a detailed home inspection.

When you’re buying a home, both may provide useful information for different decisions.

Your real estate agent can help with inspection-related questions, while we’ll explain the property’s valuation requirements for your mortgage.

For most residential mortgage transactions, the lender requires acceptable homeowners insurance before the loan can close.

The policy helps protect the property serving as collateral for the mortgage.

Depending on the property’s location and characteristics, additional coverage such as flood insurance may also be required.

The lender may have specific requirements regarding the coverage amount, deductible, effective date, and mortgagee information.

We’ll explain which insurance details are needed for your loan and help coordinate them with the lender and closing professionals.

We recommend beginning your insurance search after you’re under contract rather than waiting until the final days before closing.

Starting early gives you time to compare coverage and premiums, confirm that the home can be insured on acceptable terms, and provide the required policy information to the lender.

Insurance costs can also affect your total monthly housing payment.

For example, if the actual annual premium differs significantly from the amount originally estimated, we may need to update your payment figures.

We’ll tell you when the lender needs the policy information and help you understand the requirements.

Yes. You’re welcome to shop for homeowners insurance through your preferred agent or insurance company.

If you don’t already have an insurance professional, we can connect you with agents we’ve worked with so you can explore available coverage options.

You’re not required to use someone we introduce.

When choosing a policy, consider the coverage, deductible, premium, exclusions, and whether it meets your mortgage lender’s requirements.

We’ll help coordinate the required insurance information once you’ve selected a policy.

Flood insurance may be required when the property is located in an area subject to mandatory flood-insurance requirements or when another applicable lender or program rule requires coverage.

The lender typically reviews a flood-zone determination as part of the property evaluation.

If flood insurance is required, you’ll need to arrange acceptable coverage before closing.

An insurance professional can explain available policies, coverage limits, and premiums.

We’ll help you understand the lender’s requirements and how any required premium may affect your estimated housing expenses.

Once you’ve submitted your application, our team reviews the information and documents needed to prepare the loan for the selected lender.

We’ll check what has been provided, identify missing items, and help you understand any questions before the loan is submitted.

The process generally includes:

• Loan setup: Confirming the transaction, program, and property details.
• Document review: Collecting and reviewing relevant income, credit, asset, and other records.
• Loan submission: Sending the loan file to the selected lender.
• Underwriting: The lender evaluates the borrower, property, and program requirements.
• Conditions: Additional information may be requested before final approval.
• Closing preparation: Required disclosures, title work, insurance, and signing arrangements are coordinated.

We’ll keep you informed as the file progresses and explain what you need to do at each stage.

We’ve organized our homebuying process into eight essential steps so you can understand what happens from the beginning of your home search through funding.

1. Get Pre-Approved: We review your financial information and help determine potential financing options.
2. Find Your Home: You work with your real estate agent to shop for a home and prepare an offer.
3. Loan Submission: Once you’re under contract, we prepare your application and supporting documents for the lender.
4. Underwriting: The selected lender reviews your financial information, property, and loan requirements.
5. Approved With Conditions: We help you address the additional items needed for final approval and discuss available rate-lock options.
6. Clear to Close: The lender has cleared the required conditions, and the transaction moves toward closing.
7. Loan Closing: You review and sign the required mortgage and transaction documents.
8. Funding: The lender releases the loan proceeds once the applicable funding requirements are satisfied.

We’ll help you understand what each step involves and what information may be needed from you.

Underwriting is the lender’s formal review of the loan to determine whether it meets the applicable approval requirements.

The lender may evaluate:

• Income and employment
• Credit history and monthly debts
• Bank accounts and available assets
• Property value and eligibility
• Occupancy and loan purpose
• Loan-program requirements
• Additional documentation related to the transaction

The underwriter may approve the file with conditions, request more information, or issue another underwriting decision.

An initial underwriting review may take only a few business days in some situations, but the complete process can take longer depending on the file and outstanding requirements.

We’ll explain the requests and help you understand what happens next.

Additional documentation is a normal part of mortgage underwriting.

Lenders may need to verify that information is accurate, current, and consistent with the selected program’s guidelines.

For example, an underwriter may ask for:

• Updated pay stubs or bank statements
• Verification of employment
• Documentation of a large deposit
• A letter explaining certain information
• Additional property or insurance records

A request for more documentation doesn’t automatically mean there’s a problem with your loan.

Our team will help you understand what the lender is asking for, why it matters, and how to provide the information needed to move the review forward.

An approval with conditions means the lender has reviewed your loan and identified additional requirements that must be satisfied before final approval.

These are commonly called underwriting conditions.

Conditions may involve updated income information, bank statements, employment verification, property documents, homeowners insurance, or clarification of a particular financial transaction.

At this stage, we’ll help you:

• Understand what each condition means.
• Identify the documents or information required.
• Review documents with you when appropriate.
• Submit the requested items to the lender.
• Follow up as the lender reviews outstanding conditions.

Our goal is to help you address each condition efficiently so the loan can continue toward final approval.

Clear to Close generally means the lender has received and approved the required information and cleared the outstanding conditions needed to move toward closing.

That doesn’t necessarily mean you’ll sign documents immediately.

The lender and closing professionals still need to complete the applicable closing preparations, which may include:

• Finalizing closing figures
• Providing required disclosures
• Confirming insurance and title details
• Coordinating signing arrangements
• Confirming the anticipated funding schedule

We’ll work with the lender and settlement professionals to keep you informed about the remaining steps.

The timeline depends on your loan, property, documentation, lender requirements, and the parties involved in the transaction.

For a home purchase, a typical closing may take approximately 21–45 days after you’re under contract, although some well-prepared transactions may close sooner and others may require more time.

Factors that can affect the timeline include:

• How quickly documents are provided
• Underwriting and lender workload
• Appraisal scheduling and review
• Title-related issues
• Homeowners insurance
• Outstanding underwriting conditions
• Changes to the borrower or transaction

Starting with a detailed pre-approval and responding promptly to requests can help reduce avoidable delays.

We’ll discuss the expected timeline for your particular loan rather than promise a closing date that depends on factors outside our control.

If you expect to be out of town around your closing date, let your Lock It Mortgage loan officer know as early as possible.

Depending on your loan program, lender, and state requirements, we can help coordinate available signing options, which may include:

• Signing at another location: Arranging for a mobile notary or settlement professional where you’ll be staying.
• Remote online notarization: Signing eligible documents remotely when permitted.
• Power of Attorney (POA): Allowing an authorized person to sign certain documents on your behalf, subject to lender approval and applicable requirements.

Not every signing option is available for every mortgage. For example, some cash-out refinance programs restrict the use of a Power of Attorney.

We’ll work with the lender and closing agent to review your options and help coordinate an acceptable signing arrangement.

Letting us know ahead of time can help prevent unnecessary closing delays.

Before closing, you’ll receive the required loan disclosures, including the Closing Disclosure for most covered mortgages.

The Closing Disclosure provides important details such as:

• Loan amount
• Interest rate
• Monthly payment
• Closing costs
• Cash needed to close
• Prepaid and escrow amounts

For most covered transactions, you’re required to receive it at least three business days before consummation, subject to applicable rules.

At closing, you’ll review and sign the necessary mortgage and transaction documents through the appropriate title company, escrow company, closing attorney, or settlement professional.

Take your time reviewing the documents and ask questions about anything you don’t understand.

We’ll remain available to help with mortgage-related questions, while the settlement professional handles the applicable closing procedures.

Closing and funding are related, but they aren’t always the same event.

Closing generally refers to the signing and completion of the required mortgage and transaction documents.

Funding is when the lender releases the loan proceeds after the applicable requirements have been satisfied.

For some home purchases, funding and recording may occur on the same day as signing. In other transactions, they may happen later.

For certain refinances and home-equity loans, an applicable right-of-rescission period generally must expire before funding.

We’ll explain the expected timing for your transaction and coordinate with the lender and settlement professionals as the process moves forward.

Potentially. Some mortgage programs allow eligible trusts to hold title to a property, subject to specific requirements.

The lender may need to review the trust documents and confirm details such as the type of trust, trustee authority, beneficiaries, and who will be responsible for the mortgage.

Not every trust structure is acceptable under every loan program.

If you plan to buy or refinance a home held in a trust, tell us before proceeding so we can review the applicable financing requirements.

For questions about creating or modifying a trust, we recommend consulting a qualified attorney.

Possibly. The lender will need to determine whether the trust and ownership arrangement meet the requirements of the proposed loan program.

Depending on the transaction, this may involve reviewing:

• Trust agreements or certifications
• Trustee information
• Title and ownership records
• Borrower and signing requirements
• Other lender-specific documents

The fact that a property is held in a trust doesn’t automatically prevent refinancing or financing, but it may affect which programs are available.

We’ll help identify the lender’s requirements and coordinate the mortgage-related review.

Some investment-property and commercial loan programs allow eligible properties to be purchased through a limited liability company (LLC).

However, traditional residential mortgage programs often have different requirements regarding individual borrowers and ownership.

The available financing may depend on the property type, intended use, LLC structure, borrower or guarantor qualifications, and lender guidelines.

Tell us about your intended ownership structure before making an offer or applying.

We can help you determine whether an eligible loan program accommodates the LLC arrangement you’re considering.

Potentially. Some DSCR lenders allow investment properties to be financed through eligible LLC structures.

The lender may review the LLC’s organizational documents, ownership, authorized signers, property information, and any required personal guaranties.

Depending on the program, credit, assets, down payment, reserves, and rental income may also be evaluated.

We’ll review how the property will be held and determine whether available investment programs can accommodate the proposed structure.

For legal or tax considerations involving LLC ownership, consult the appropriate professional.

Before transferring title after closing, it’s important to understand the potential implications.

Your mortgage documents may contain transfer restrictions or a due-on-sale provision.

Some transfers into eligible trusts may receive protection under applicable law, but not every transfer is treated the same way.

Moving a property into an LLC or another entity can create different issues involving the mortgage, title, taxes, or homeowners insurance.

We recommend discussing the proposed transfer with your loan servicer and qualified legal or tax professionals before making any changes.