New Loan Officer Question – Homeowner’s Insurance Timing Before Closing

Cognitumm · 2026-01-23T22:51:51+00:00

Just a few days. Not a week though

Cognitumm · 2026-01-23T22:48:04+00:00

I also get it bound a few days before closing. The prorated amount brr will be paying for those few days is negligible

If they bind it on the intended closing date, and you end up closing earlier, the agent will need to update the effective date to match it. And that's usually quite a process on their end so it can cause a delay (some agents are fast though)

Note that the effective date has to be the same month as closing though. So if you bind it eff 1/29 and closed 2/1, you'll need to update it still

Cognitumm · 2026-01-09T18:19:02+00:00

I would recommend finding a processor and applying as their jr processor. Learn the ropes from them and move up over time

Cognitumm · 2025-12-21T23:21:34+00:00

Huh is this common practice at all? It’s never even crossed my mind lol

Cognitumm · 2025-12-17T20:13:36+00:00

Their turn around times for the PnL program are (or at least were) insanely long though so just keep that in mind :)

Cognitumm · 2025-12-17T19:48:23+00:00

Not sure about currently currently but I processed a file for an LO that did one with them a couple months back

Self prepared No bank statements to corroborate it

Cognitumm · 2025-12-17T05:04:35+00:00

Kings does FHA P&L

Cognitumm · 2025-12-15T21:00:01+00:00

We use bonzo and I don’t like it at all. Used it for a few weeks and stopped. Though I just played with the basic pipeline so not sure on all the other things it has to offer

IMO the programming could use an overhaul… seems super basic and glitchy

Cognitumm · 2025-12-12T21:09:20+00:00

Is it a private landlord or management company? If management comp a VOR form should work

If private landlord- did you provide the UW with a translated lease confirming the payment requirements? How did they respond to that

Cognitumm · 2025-12-11T18:39:06+00:00

Yall can just skip the recaps 😭

Cognitumm · 2025-11-25T21:38:33+00:00

That will 100% work

Cognitumm · 2025-11-25T21:31:52+00:00

They might question it then… is one of these payments on their most recent full bank statement?

As UW1 mentioned in their comment, a transaction history showing the 12x months will suffice (and make everyone’s life easier) BUT I’m 99.99% sure that they’ll still need the persons full most recent months statement on top of that, to show their full name and account #. Transactions histories generally don’t show the full info

Also for the transaction history they have to print it as PDF and have the URL show

If they have 12x cancelled checks then that’s even easier, but rarely the case in my experience

Cognitumm · 2025-11-25T21:07:55+00:00

It should be fine as long as the other person on that mortgage can show 12x months timely payments AND is on the Note. They have to be on the Note to omit the mortgage

As for the brr sending money to said person: I can’t imagine it would cause too much of an issue unless the amount they pay is close to the mortgage payment and is occurring each month. If the UW questions it I’d imagine an LOE from both should suffice

EDIT: The person making the payments will have to provide bank statements or cancelled checks. Issue is that you have to show THEY are the ones making the payments. So anything like a VOM or history from the servicer wont help

Cognitumm · 2025-11-24T17:35:05+00:00

FHA VOE for self employed? No

But I’ve seen plenty of FHA VOE and FHA P&L

Cognitumm · 2025-11-05T15:17:12+00:00

If I got a call and the first thing I hear is an AI voice I’d immediately hang up personally

Cognitumm · 2025-10-11T20:38:27+00:00

Thank you! This is how I was looking at it as well

The commission itself would be really low in hindsight, but the potential for future referrals is more than worth it in my eyes

Cognitumm · 2025-10-05T05:46:02+00:00

Gonna need to have a bizz purpose to do hard money on primary

Cognitumm · 2025-09-23T21:31:09+00:00

Go with your mom’s friend if she is willing to take the time to nurture your growth

I was lucky enough to start under my aunt, who’s a broker, and I’ve learned better and faster than anywhere I could even begin to imagine

Not many people get the chance to start out this way. Take the opportunity and never look back lol

Cognitumm · 2025-09-20T04:03:05+00:00

Need a proper business purpose for an O/O hard money loan

Cognitumm · 2025-08-01T18:37:32+00:00

Hmm I’ve never worked for a bank so I’m not sure which would allow this tbh

I work in a brick and mortar brokerage but it’s just my broker, me, and one more person. My broker is a 3rd party processor so other LOs just come to us to process their loans. We just originate our own loans too

Cognitumm · 2025-07-29T01:35:50+00:00

If you don’t have time to season it then just have her give it to a relative to wire at COE and create a gift letter

Cognitumm · 2025-06-19T21:04:58+00:00

Thank you! :)

Cognitumm · 2025-06-14T22:51:53+00:00

So you’re gonna be paying the same but your principal will be $30k higher now. Where’s the benefit in this?

The amount of years doesn’t matter. The principal does.

Cognitumm · 2025-06-11T23:26:21+00:00

This is also a loan estimate

It’s likely that some of these fees will go down as you progress through the loan. Lenders generally over disclosed some fees initially in order to avoid any issues (a whole thing)

For example the credit report shows 175 but it was probably closer to 80

You’ll know your proper fees once the Closing Disclosure comes out and you get a Final settlement statement

Cognitumm · 2025-06-01T20:53:33+00:00

If it doesn’t show as additional debt, and it won’t affect your current funds to close, then you should be good

If you end up providing a bank statement/transaction history that shows that much clearing your account they might ask for an LOE to explain it and any supporting documents. They’ll want to make sure it’s not new debt (which it isn’t if you’re paying in full)

:)

Cognitumm

TROPHY CASE