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Yunicorn Lending
info@yunicorninc.com

Office: 626-789-3199
Fax: 626-239-3299

BRE# 01875636
NMLS# 285948

Business Hours:
MONDAY-FRIDAY
9:00AM-5:30PM

SATURDAY-SUNDAY

by appointment only

1. How do I know how much house I can afford? Answer
2. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3. How is an index and margin used in an ARM? Answer
4. How do I know which type of mortgage is best for me? Answer
5. What does my mortgage payment include? Answer
6. How much cash will I need to purchase a home? Answer
7. What does my mortgage payment include? Answer
8. What is a lock commitment? Answer
9. When can I lock my rate? Answer
10. Can I change my loan’s rate or loan program once I have already locked? Answer
11. What happens to my rate if the loan does not fund within the lock period? Answer
12. How can I check the interest rates Yunicorn Lending is currently offering? Answer
13. What are third party fees? Answer
14. Do I have to pay closing costs if I am an existing Yunicorn Lending customer? Answer
15. What is an escrow/impound account? Answer
16. Will I receive a better rate or price by electing to have an escrow/impound account with my loan? Answer
17. How long does the loan process take? Answer
18. How much will I need to pay for closing costs? Answer
19. Can I get Pre-approved for a mortgage? Answer
20. How long does it take to get Pre-approved? Answer
21. What is the minimum down payment allowed? Answer

Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
 
Q : How is an index and margin used in an ARM?
A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
 
Q : How do I know which type of mortgage is best for me?
A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Yunicorn Realty Inc can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
  •  
    Q : How much cash will I need to purchase a home?
    A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
  •  
    Q : What does my mortgage payment include?
    A : For most homeowners, the monthly mortgage payments include three separate parts:
    •Principal: Repayment on the amount borrowed
    •Interest: Payment to the lender for the amount borrowed
    •Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
     
    Q : What is a lock commitment?
    A : A lock commitment is a written agreement between you and Yunicorn Lending, 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.
     
    Q : When can I lock my rate?
    A : On Refinance transactions, after the loan is approved by Yunicorn Lending’s Automate Underwriting System (AUS); and Yunicorn Lending received all requested documents, you may lock your rate by call in and speak to a loan officer to request lock in the rate.

    On Purchase transactions, once your application has been submitted and approved by Yunicorn Lending’s Automate Underwriting System (AUS); and Yunicorn Lending received all requested documents and you have a fully executed purchased agreement for the house you are buying, you may lock your rate by call in and speak to a loan officer to request lock in the rate.

    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/your agent will be provided with a Rate Lock Confirmation via email or fax from Yunicorn Lending. Your Rate Lock Confirmation will detail the loan terms you have selected.

     
    Q : Can I change my loan’s rate or loan program once I have already locked?
    A : If for some reason you want to select another rate on the same or a different loan program, Yunicorn Lending will accommodate your request. Yunicorn Lending 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, Yunicorn Lending reserves the right to re-price your interest rate and/or lender origination points/credit.
     
    Q : What happens to my rate if the loan does not fund within the lock period?
    A : If your lock commitment expires prior to funding due to delays in our receiving the documentation 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 the selecting the higher of the two.
     
    Q : How can I check the interest rates Yunicorn Lending is currently offering?
    A : You can call Yunicorn Lending where you will be put in contact with a loan officer at (626) 789-3199
     
    Q : What are third party fees?
    A : Third party fees are any fees associated with the loan that are charged by parties other than Yunicorn Lending. Generally, third party fees may include appraisal fees, title and closing fees, notary fees, recording fees, delivery/courier fees, or transfer taxes.
     
    Q : Do I have to pay closing costs if I am an existing Yunicorn Lending customer?
    A : Yes, closing costs have to be paid on all loans. However, depending on your loan terms and the selected loan program, Yunicorn Lending may pay for some or all of your closing costs in exchange for selecting a higher interest rate.
     
    Q : What is an escrow/impound account?
    A : This is an account established with Yunicorn Lending 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. Your escrow payment is based on 1/12th of the annual estimated payments for your property taxes, homeowner’s insurance, flood insurance (if required) and mortgage insurance (if required).
     
    Q : Will I receive a better rate or price by electing to have an escrow/impound account with my loan?
    A : No. Yunicorn Lending's pricing remains the same, whether or not you choose to establish an escrow/impound account when applying for a loan with Yunicorn Lending.
     
    Q : How long does the loan process take?
    A : The loan process varies based upon current market conditions, the program you select and the state in which the property is located. The process generally can take as few as 14 days or as long as 40 days.
     
    Q : How much will I need to pay for closing costs?
    A : The amount you will need to pay for closing costs is determined by many factors including the loan purpose, loan type and property state. Based on the interest rate you select, there may be loan points paid to Yunicorn Lending or a credit paid to you to cover part of the non-recurring closing costs associated with the loan. The following is a brief summary of some typical fees incurred when closing a loan with Yunicorn Lending:

    Fees charged by Yunicorn Lending
    • Administration Fee: $1095.

    Fees charged by third parties
    • Appraisal Fee: $500 - $1,500 (price will vary based on property state, appraisal type, and property value).
    • Title Insurance and Services: will vary based on loan purpose, loan amount, and property state.
    • Settlement/Closing: will vary based on loan purpose, loan amount, property state, and purchase price.
    • Notary, Recording, and Delivery Fees: will vary by state and county.
    • Local transfer tax and similar taxes: will vary by state and county.

     
    Q : Can I get Pre-approved for a mortgage?
    A : Yes. To get Pre-approved for a purchase loan, please contact Yunicorn Lending at: (626) 789-3199 and we will connect you to a loan officer. Yunicorn Lending recommends that you apply for a Pre-approval while you are searching for a home. A Pre-approval will consider your financial situation to determine if you are likely to qualify based on the estimated loan amount and purchase price. A Pre-approval will provide you with security, leverage and flexibility while you are searching for a home.
     
    Q : How long does it take to get Pre-approved?
    A : Once you have submitted an application online or over the phone; and submitted all documents Yunicorn Lending requested. Yunicorn Lending can provide you with a Pre-approval decision within 1 business day.
     
    Q : What is the minimum down payment allowed?
    A : The minimum down payment Yunicorn Lending allows on most conforming loan programs is 5% of the current property value or the purchase price, whichever is less. To find out if you qualify please contact us at (626) 789-3199.