What is a Temporary Loan Profile (B1124-030)

A Temporary Loan Profile in Padzilly allows you to begin your home search and offer structuring process even if you don’t yet have a formal loan approval or if you’re still exploring financing options. By creating a Temporary Loan Profile, Padzilly can provide you with estimated monthly payments, cash needed to close, and other key financial information based on assumptions or preliminary information. This tool helps you stay proactive in your home search while waiting for official loan approval from your lender.

Why Use a Temporary Loan Profile?

A Temporary Loan Profile is especially useful when:

• You’re in the early stages of your home search and want to get a sense of how much house you can afford.
• You haven’t yet secured a pre-approval from a lender but still want to explore homes based on estimated financial parameters.
• You’re comparing different loan types or scenarios and want to see how different assumptions (like down payment or interest rate) affect your home search.

Key Features of a Temporary Loan Profile

1. Estimate-Based Financials: Since a Temporary Loan Profile does not rely on an official loan approval, the financial data is based on estimates you provide. You can adjust key parameters to fit your expected loan terms, such as:

   • Loan amount
   • Interest rate
   • Loan term (e.g., 15, 20, or 30 years)
   • Down payment percentage

2. Flexible Adjustments: You can easily modify the details in your Temporary Loan Profile as your situation changes. For example, if you’re considering different loan programs (such as FHA, Conventional, or VA loans), you can create different profiles to explore how each loan type affects your monthly payment and cash needed to close.

3. Preliminary Search Filters: While the results are not as precise as they would be with an official loan approval, Padzilly will still use your Temporary Loan Profile to filter homes that fit within the limits you set, ensuring you stay close to your financial target.

How to Create a Temporary Loan Profile

1. Navigate to the Loan Profile Setup: In your Padzilly dashboard, select the option to create a new loan profile. You’ll see the choice to either upload an official loan approval or create a Temporary Loan Profile.

2. Enter Estimated Loan Details: You’ll be prompted to enter:

   • Estimated loan amount.
   • Expected interest rate (you can use current market rates as a guide).
   • Down payment amount or percentage.
   • Loan term (e.g., 30 years, 20 years, 15 years).

3. Customize Financial Assumptions: You can also estimate property taxes, homeowner’s insurance, and mortgage insurance to give you a more accurate picture of what your total mortgage payment might be.

4. Save and Apply: Once you’ve entered your estimates, save your Temporary Loan Profile. You can now use this profile within SearchPro and OfferPro to explore homes that fit the parameters you’ve set.

Transitioning to an Official Loan Profile

Once you’ve secured an official loan pre-approval or loan approval from your lender, you can replace your Temporary Loan Profile with an official LoanLink upload. This will allow Padzilly to apply your actual loan parameters to your home search, providing more accurate monthly payments, closing costs, and property qualification limits.

• LoanLink Integration: If your lender is connected to Padzilly, they can upload your official loan approval through LoanLink. This will override the Temporary Loan Profile and ensure all calculations are based on your real loan data.
• Manual Upload: If your lender isn’t connected via LoanLink, you can still manually upload your loan approval document and update your profile with the exact loan details.

When to Use a Temporary Loan Profile

• Before Loan Pre-Approval: If you haven’t secured loan pre-approval but want to start your search with estimated numbers.
• Exploring Loan Options: If you’re deciding between different loan types (e.g., FHA vs. Conventional) or down payment scenarios and want to compare how they impact your affordability.
• Early in the Process: It’s ideal to use a Temporary Loan Profile when you’re still early in the homebuying process and want to have a sense of affordability before getting deeper into the search or offer stages.

A Temporary Loan Profile is a flexible, estimate-based solution in Padzilly that helps you begin your home search and explore offer scenarios before obtaining official loan approval. While the results are not as precise as they would be with actual loan parameters, this feature allows you to remain proactive and informed as you explore your homebuying options. Once your loan is officially approved, Padzilly makes it easy to transition to a more accurate loan profile.