Frequently Asked Questions

Easy Qualifier (EQ) Program

How much does registration cost?

Lockett-N-Homes pride’s itself in helping our customers maximize their credit score in the most cost effective manner. Our members pay a one time registration fee of $50.

How long does it take to get me to qualification status?

Every account is different and therefore varies in time. On average it can take as quick as 1 month or as long as 5 months to satisfy your account requirements.

Is there any contract or obligations once I am a member?

No, our program is designed around the convenience of our clients. There are no obligations. You can quit the program at any time, with no additional fees.

Who can the Easy Qualifier (EQ) Credit Prorgram help?

The EQ Program can help anyone looking for or needing third party assistance in attempting to resolve their current or past credit issues, that are potentially preventing home loan or auto loan approval. No matter what your current or past credit situation is, there is always something that can be done to improve it.

Is restoring credit legal?

YES! It is legal. In fact, it is the best way to exercise your rights under the Federal Fair Credit Reporting Act and the Fair and Accurate Credit Reporting Act. These laws were put into place to protect consumers from the intrusion of the credit bureaus into our lives. They also provide each of us with a checks and balance system, giving us the right to question the validity, accuracy and ownership of the information being reported about us and sold to others. Insuring that only information that is 100% accurate and verifiable is being provided to potential lenders, employers, and insurance agencies, so that we are not being unnecessarily overcharged for lending or insurance premiums or denied employment due to erroneous credit reporting.

Are credit bureaus a government agency?

Absolutely NOT! They are simply privately owned companies that make money by selling our information to anyone who will buy it.

Does paying an old debt/collection help my credit score?

Paying an old debt can potentially hurt your credit score just as much as it could help it. It changes the date of last activity and extends the time period in which that account can be reported. The account could be updated to show a zero balance, but will still report that it was in collections, charged off or that you were delinquent on it in the past, which will still have a negative impact on your credit score. Let our specialist determine which accounts to satisfy, and DO NOT pay any collection account without consulting a Lockett-N-Homes staff member first.

Can information be re-reported or reappear after it has been satisfied though the EQ Program?

Our staff takes every precautious to ensure that once an account has been satified it will not appear on your credit again. It is highly unlikely and very rare that any account satisfied will re-appear without additional activity outside of the recommendations of the Lockett-N-Homes staff members.

Loan Programs

What documents will need to be provided?

To ensure a simple approval process we will need the following documents labelled EXACTLY as presented (i.e. your bank statement should be labeled Bank Statement - Month):

  • Copy of the borrower's ID
  • Two most recent bank statements (full statements w/ all pages included)
  • Most recent tax return (all pages only for verification purposes)
  • Business Entity Docs (documents vary state to state)
    • Articles of Organization
    • Signed operating agreement
    • Certificate of good standing
  • Purchase contract – executed  (if applicable)
  • Detailed construction budget / rehab scope  (if applicable)
  • Insurance agent name, phone, and email
  • Title/closing attorney company name, contact name, phone, and email (state laws determine if title company or closing attorney)
How long will it take to close my loan?

As a first time borrower with LNH you should plan for 2-3 weeks to close.  Documents need to be submitted and reviewed in addition to you being vetted as a reliable borrower.

Every loan thereafter should take between 10-14 days to close.

What is the draw process?

For a rehab loan, borrowers are allowed to request funds as a part of their loan to complete updates/enhancements to the property (as defined in the rehab scope approved with the loan).  Funds are dispersed as work is completed and verified by an inspector.  

How much money will I need to put down and how much will I need to close?

Down payments will vary between 10% - 20% of the total loan amount based on borrower credentials.  Borrower credentials are verified during the underwriting process. 

To close your loan, you will need your down payment amount plus closing costs (insurance, lender, and title fees).  

What states do you lend in?

Lockett-N-Homes is able to lend in 48 states with the exclusion of North and South Dakota.  

Can I use my own appraiser?

No, you cannot use your own appraiser.  Lending guidelines require use of an approved third party Appraisal Management Company (AMC) with registered certified appraisers.    

LNH is required to schedule the appraisal, but the borrower is required to pay for the appraisal. The typical cost of appraisal is between $400-$500 but it varies from state to state.

How do I show my flip history?

Flip history verification is determined by the number of properties where the borrower's name or LLC name is on title.  Further substantiation can be provided with before and after pictures from the properties. 

All information provided by the borrower will be vetted during the underwriting process and can impact the final terms. 

How much money will I have available for rehab?

Rehab funds are determined by the borrowers rehab scope and are vetted during the appraisal and underwriting process. 

What type of funds can be used as reserve funds?

Reserve funds can be sourced from any one of the following accounts associated with the borrower (the borrower's spouse or family member's funds cannot be considered if they are not a part of the loan): 

  • Checking account
  • Savings account
  • Retirement account
  • Brokerage account