Frequently Asked Questions

How long can I expect the refinance process to take?

The typical time period is 30 calendar days, but it can vary between 15 to 45 days depending on three primary factors: 1) how responsive the applicants are in providing paperwork, and 2) how long it takes to satisfy the conditions the underwriter requests, and 3) how busy the lender is at that time, depending on the market - which is probably the one factor where brokers have little or no influence. 

How do rate locks work, in general? If I lock a rate and rates subsequently fall – can I re-lock?

A rate lock “guarantees” a borrower a specified interest rate for a specified number of days. For any given lender, the lower the rate offered, the more points you will have to pay out-of-pocket in escrow. The standard lock in period is 30-days, with the typical range from 15 to 60 days. There are some lenders who offer rate lock periods of 90 days and beyond, but will almost certainly require upfront non-refundable funds for such a long-term guarantee.

Should mortgage rates fall after your rate lock, then in the wide majority of cases, the lender will not renegotiate a better rate.  However, there are some who will offer discounted rate drops.  In other words, they may charge a small fee to cancel and re-lock with such fee being absorbed by the lower interest rate, or lower number of points charged by the lender. In no case will the lender allow a rate lock cancellation and re-lock for free – if that was the case, then borrowers would simply lock immediately knowing they could re-lock again in an improving market.

The rate drop scenario is a rare one. In most cases, rates do not drop far enough within a 30-day period to justify paying a small fee. It’s also possible to withdraw a file and resubmit it to another wholesale lender, however, this is also unlikely since the lender we initially submit the file to has the best rate to begin with so for another competitor to meet and improve on the offered rate will take a significant rate drop to do so.

Can I refinance my house even though it is held in trust?

Absolutely.  It just required signing two additional documents - a grant deed to take title to your house as individual(s) and a second grant deed to put the house back into your trust after escrow closes.  Even if the lender allows taking title as trustee of a trust, the process is lengthy as it requires review of the trust certification and in some cases, the entire trust document.  Thus, the most expedient strategy is to execute a quick deed out and in which we provide at no additional cost.   

I know you don't have a crystal ball, but what is your gut feeling about where interest rates are headed?

Our advice to you is don't get greedy and don't get scared.  In other words, if you are comfortable with the payment, and have good credit as virtually all our clients do, just lock at no-cost and in the best case scenario, it will drop and you will have the opportunity to refinance again at a later date.  Over time, this has proved to be a rock-solild strategy versus trying to time the market.  Besides, our predictions only come true 50% of the time...

Given the mortgage industry shakeout and liquidity crisis, what is the viability of your company?

We have been in business since 1989, formerly known as Opus Mortgage.  We have survived the Loma Prieta Earthquake, two wars, 9/11 and two recessions.  Knowing how to plan for the downcycles by saving enough nuts for the winter is the key to long-term survival in this industry.  While many of our competitors, both big and small, have closed doors we are alive and kicking and can assure you that we have more than enough steam to last for at least a few more decades.

I'm getting a better rate quote from another company so why should I apply for a loan with Veridian?

You should strongly consider Veridian even if you are getting a better quote because there is so much more to a single transaction and a long-term relationship other than a verbal rate quote.  In a loan transaction, many other factors are involved in determining the ultimate interest rate.  This includes closing costs, points, loan terms, prepayment penalties, rate lock period, impounds, etc.  All we ask is for a fair apples-to-apples comparison.  Many instances, our competitors will under cut our rate quote, only to find out later that closing costs are charged for the lower rate.

More importantly, your broker should be someone you can absolutely trust.  What happens if a rate was quoted by mistake?  Will your broker compensate you for their mistakes?  To that end, we provide all the referrals you wish and tell you of all the potential pitfalls that can occur in a transaction and ultimately assure you that any errors on our part will be shouldered by our clients.  We practice this to build your trust and to develop a long-term relationship.

Finally, we provide unparalled post-close customer service.  We provide 6 month and 1-year anniversary follow up calls.  Our automated rate tracking software allows us to contact you should you be targeted for a potential refinance. 

Which lenders do you work with?

Unfortunately, because of our confidential broker agreement provisions, we are not allowed to disclose the identities of our wholesale partners until your loan is approved and/or locked.  We do actively work with a wide variety of wholesale lenders, however from local resellers to the nation's biggest banks.