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Mortgage - FAQ

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Payments

  • Does Laurel Road charge pre-payment penalties?
    No, none of our mortgage product offerings have pre-payment penalties.
  • What is included in the monthly mortgage payment?
    Your monthly payments include principal and interest, as well as payments made to your escrow account (if applicable). The escrow account payment may include homeowners and/or flood insurance, property taxes and monthly PMI, as applicable.
  • How do I make my payments?
    You will be provided with payment instructions in the closing package, including a coupon to make your first payment. You will receive a welcome letter from KeyBank within 45 days after closing with instructions on setting up your regular payments.
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Appraisal

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Fees

  • Does Laurel Road charge lender fees?
    Yes, we do charge an application/processing fee; however, a customer will receive a lender credit on the Loan Estimate for this fee. Please note, there are additional third-party fees that may be charged such as an appraisal fee and flood certification.
  • What are standard third-party closing costs?
    Settlement fees, title insurance, title search, and recording fees are usually included in third-party closing costs (the fees will vary upon the closing agent you pick and the location of the subject property).
  • What are the costs associated with refinancing?
    Typically, lender fees, third-party fees (such as Attorney/settlement agent, appraisal, flood certification, etc.), and potentially new prepaid escrow costs.
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Terms

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Rates

  • How do I lock my rate?
    When you have entered a subject property into the system, you may lock your loan through the task created on your dashboard or by clicking the rate lock icon.
  • What happens if my closing is after my lock expiration date?
    Extensions are available, as needed, which may require additional fees.
  • What is the difference between an interest rate and an APR?
    The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.
  • Can quoted fees and rates change?
    Quoted rates are eligible to change based on market conditions until you lock your rate. Fees are subject to change based market conditions until you receive a Loan Estimate. Once a Loan Estimate is received, the fees can only change within certain thresholds or if you request a change to the loan.
  • Are quoted rates real and guaranteed?
    Our quoted rates reflect the current market rates for that day, but they are not guaranteed until you lock your rate during the application process. You can lock your rate once you’ve entered in the subject property in the system. Even though we cannot guarantee your rate until you lock your rate, you will see current market rates based on the information you provide.
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Physician Mortgage

  • What is a Physician mortgage?
    Laurel Road’s Physician mortgage is a home loan tailored specifically to doctors and dentists featuring up to 100% financing* for loans $750,000 or less. These loans have fewer restrictions than conventional mortgages and recognize the lender’s trust in medical professionals’ creditworthiness and earning potential. *100% financing is only available to interns, residents, fellows, doctors, dentists, clinical professors, researchers, or managing physicians with a current license and a degree of Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Dental Medicine (DMD), Doctor of Dental Surgery (DDS), or Doctor of Podiatric Medicine (DPM). Only available when purchasing or refinancing with no cash out on a primary residence and loan amount does not exceed $750,000. Retired doctors are not eligible. Additional conditions and restrictions may apply.
  • What documents will I need to provide during the application process for Laurel Road’s Physician mortgage product?
    • Diploma or accreditation of completion (medical license)
    • Employment contract/offer letter if accepted to a residency program
    • 2 years of 1040 personal tax returns
    • W2’s from your last two years of employment (if applicable)
    • If practicing, two most recent pay stubs
    • Proof of alimony, child support or other maintenance income (if applicable and ONLY IF you want it considered in determining your qualification)
    • Statements from checking and savings account for the past two months
    • Statements from IRA, 401k or other investments accounts for the past quarter
    • Source and verification of down payment funds (if applicable)
    • Copy of the purchase and sale agreement (not applicable for refinancing)
    • Self-employed will require additional documentation
  • Are your loans available in all 50 states?
    Yes. Laurel Road is a brand of KeyBank, N.A. offering mortgage loans in all 50 states, plus Washington D.C. We do not lend in US territories. Our digital lending platform is available 24/7 at https://homelending.key.com.
  • Do I have to be a U.S. Citizen or permanent resident to qualify?
    U.S. Citizens and permanent residents are permitted, and nonresidents are permitted with certain VISA type restrictions.
  • Is the Laurel Road Physician mortgage a conforming, conventional or government loan?
    No. This program is a sponsored portfolio program which allows for greater flexibility in underwriting, mortgage product offerings, and down payment options by recognizing the overall creditworthiness of the medical professional.
  • What property types are eligible for Laurel Road’s Physician loan program?
    Primary residence single-family homes, single-family attached, Planned Urban Developments (PUD) and condominiums are eligible. Second homes are also eligible but a larger down payment may be required and additional restrictions may apply. Please contact us at (800) 653-4067 for further details and information. Customers using a TDD/TTY device, please use (800) 539-8336.
  • What are the benefits of Laurel Road’s Physician mortgage?
    • 0% down payment option for loans $750,000 or less*
    • A variety of mortgage options without PMI (Private Mortgage Insurance)**
    *100% financing is only available to interns, residents, fellows, doctors, dentists, clinical professors, researchers, or managing physicians with a current license and a degree of Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Dental Medicine (DMD), Doctor of Dental Surgery (DDS), or Doctor of Podiatric Medicine (DPM). Only available when purchasing or refinancing with no cash out on a primary residence and loan amount does not exceed $750,000. Retired doctors are not eligible. Additional conditions and restrictions may apply. **Only available to interns, residents, fellows, doctors, clinical professors, researchers, or managing physicians with a current license and a degree of Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), or Doctor of Podiatric Medicine (DPM). Retired doctors are not eligible. Additional conditions and restrictions apply.
  • Who can apply for Laurel Road’s Physician mortgage?
    Only available to interns, residents, fellows, doctors, dentists, clinical professors, researchers, or managing physicians with a current license and a degree of Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Dental Medicine (DMD), Doctor of Dental Surgery (DDS), or Doctor of Podiatric Medicine (DPM). A borrower may have only two outstanding Doctor and Dentist loans at one time; one owner occupied and one second home. Residents that have a signed residency contract effective within the next ninety (90) days are also eligible. Retired doctors are not eligible. Additional conditions and restrictions apply.
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