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Where do I begin?
Your Credit Union has mortgage loan officers who can answer your questions, help you select the best financing for your needs, prepare estimates of your closing costs and down payment, calculate payment schedules, and help you determine what price home you can afford. To help get you started, feel free to contact a Real Estate expert at your Credit Union.
How Do I Prepare To Apply For A Mortgage Loan?
Getting a mortgage loan is a big step, so you'll need to understand exactly what is involved. Make a list of any questions you have about the loan. Review the terms in the Mortgage Glossary section of this site so you'll be familiar with them when you meet with your loan officer.
How Much Home Can I Afford?
Generally, lenders want your monthly payment, including taxes and insurance, to be 30-35% of your gross monthly income. Your loan officer can help you determine what price home to shop for by reviewing your income, debts and credit. You can also apply for a pre-approval where the lender approves the loan before you find a new home. Pre-approval makes your offer more attractive to a seller.
What Is A Good Faith Estimate?
A Good Faith Estimate is a written estimate of closing costs provided by the lender within three days of applying for a loan.
How Do I Apply For A Mortgage Loan?
When you have found a home, your loan officer will help you fill out a loan application and will tell you what information you will need to furnish. The most common items required are listed under the Mortgage Applications section of this site.
What Happens After I Apply For A Mortgage Loan?
After you have applied for a loan, the information you have supplied will be verified and a credit report on you will be completed. An appraisal will be performed on the home you are purchasing to determine its market value. When all the information is collected, it will be reviewed for loan approval. It usually takes at least 15 days for approval.
What is the minimum down payment required to obtain a mortgage?
The minimum down payment required to obtain a fixed rate first mortgage is 5% of the sale price of the home.
Can members be pre-qualified or pre-approved for a first mortgage?
Members can get pre-qualified for a first mortgage simply by calling or visiting our Mortgage Department at our Main office in Moon Township and providing some basic information. Pre-qualification is not a guarantee that the mortgage will be approved, but will give the member an idea of whether, based on debt to income ratios, they will qualify. Pre-approval requires that the member(s) complete an application that is sent for underwriting.
Can closing costs be financed as part of the first mortgage?
Closing costs can be financed into the loan on a refinance mortgage, but not for a mortgage to purchase a home. Portions of those closing costs may be paid by the seller if agreed upon in the sales contract.
What is PMI?
Private Mortgage Insurance (PMI) is required on any first mortgage loan with a down payment of less than 20% of the sales price. PMI covers the lender against loss on the property.
What Should I Know About Closing Costs?
Closing costs are up-front fees you pay the lender when taking out a mortgage loan. These may include points. Points are a one-time charge you pay the lender to buy a lower interest rate than the current one. Each point equals 1% of the amount you are borrowing (i.e. if you borrow $90,000, one point will cost you $900). Be sure to ask how many points you'll be charged because you must pay them at closing. Most mortgage loans at your Credit Union have zero points attached to the interest rate. Closing costs vary by state. Closing costs at your Credit Union are at least $575.00.
How do I determine how much money (equity) I can borrow on a second mortgage loan?
The Credit Union's second mortgage loans are based on a percentage of the appraised value of your home - 80%, 90%, 100% or 110% -minus the amount you owe on your first mortgage.
How much are the closing costs for a second mortgage?
Closing costs on second mortgages vary from state to state and normally run between $400 to $600. These costs can be deducted from the loan proceeds requiring no up-front or out-of-pocket expenses from the borrowers.
How much can I borrow on a second mortgage loan?
You may borrow any amount from the minimum second mortgage loan of $10,000 to the maximum of $125,000 based on our 80% equity program. Other equity loan programs have different parameters.
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