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Please note that the online application discount of .25 basis points is not applicable on Mortgage Loans, or Visa Credit Card products.
The costs associated with closing a DLFCU mortgage loan are often much lower than other lenders. By keeping the application process efficient, we are able to reduce the overall costs at closing.
Conventional Mortgage Loan
- Attorney's fees - Title Insurance (yours and lender's)
- Property taxes (to cover tax period to date)
- Interest (paid from date of closing to 30 days before first monthly payment)
- Loan Origination fee
- Recording fees
- Survey fee
- 2 Months of Escrow Items
- Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable)
- Underwriting fee
- Any documentation preparation fees
5 Year Balloon Loan
- Property taxes (to cover tax period to date)
- Interest (paid from date of closing to 30 days before first monthly payment)
- Loan Origination fee
- Recording fees
- Survey fee
- Any documentation preparation fees
WHAT IS INCLUDED IN A MONTHLY MORTGAGE PAYMENT?
The monthly mortgage payment mainly pays off principal and interest. But DLFCU includes local real estate taxes, homeowner's insurance, and PMI (mortgage insurance) if applicable.
WHAT IS PMI?
PMI stands for Private Mortgage Insurance. These are privately-owned companies that provide mortgage insurance that protects lenders against some or most of the losses that result from defaults on home mortgages. The Credit Union only requires PMI for borrowers making a down payment of less than 20% with a Conventional Mortgage Loan. DLFCU does not require PMI for Home Equity Loans or our 5 Year Balloon Mortgage Loan.
WHAT IS A LOAN TO VALUE (LTV) HOW DOES IT DETERMINE THE SIZE OF MY LOAN?
The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit.
For example: With a 95% LTV loan on a home priced at $50,000, you could borrow up to $47,500 (95% of $50,000), and would have to pay $2,500 as a down payment.
The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV the less cash home buyers are required to pay out of their own funds.
WHAT IS AN ESCROW ACCOUNT? DO I NEED ONE?
An escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner's insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure money will always be available for these payments.
DLFCU does not require an escrow account for our Home Equity Loans or for our 5 Year Balloon Mortgage Loan.
WHAT FACTORS AFFECT MORTGAGE PAYMENTS?
The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.
WHAT IS A “LOCK-IN” AND WHY IS IT IMPORTANT?
Mortgage rates fluctuate every day, so when you are ready to purchase or refinance a home, it is important to “lock in” the lowest rate available. You can “lock in” the lowest rate and protect your loan against rate increases by moving through the application process as quickly as possible. By doing so, you can save quite a bit of money over the life of the loan. If you lock in a low enough interest rate, it may be beneficial to shorten the term of your loan (from 30 years to 15 years in most cases) with only a slight increase in your monthly mortgage payment. Not only could you pay off your home sooner, but your home also gains equity faster with a shorter loan term.
If you are applying for a Construction Loan, you may lock in your fixed rate no more than 60 days before closing on your permanent loan.
WHAT DOCUMENTATION IS REQUIRED TO APPLY FOR A MORTGAGE LOAN?
Members only need minimum documentation for the pre-qualification application process including; personal documents like drivers license and social security card, and pay stubs that include at least 60 days of year to date payroll information (or W-2’s for self-employed individuals). Other documents that may be necessary are listed below:
Personal Information
• Social Security card/numbers
• Drivers license
• Present and former addresses
Employment and Income Data
• Address of current and Past employers
• Pay stubs (60 days, showing year to date)
• 2-year employment history
• Investment account statements or year
• end summaries (if applicable)
• Proof of Social Security, disability or pension income
(if applicable)
• Tax Returns with attached schedules (2-years)
• W-2’s (Tax withholding sheets)
• Tax Returns for Self-Employed (2 years)
• Lease for any investment properties
Assets
• Checking/savings/security statements (2 months)
• Other investment or holdings statements
Debts
• Monthly financial obligations (including car payments, credit card debt, insurance payments and household expenditures)
• Current mortgage information
Legal Declarations
• Details on any historical defaults or foreclosures
• Bankruptcy discharge information
Property and real estate information
• Real estate agent’s business card
• Offer to purchase (if completed)
• Any loans that need to be paid off from this mortgage
(Second mortgage, HELOC)
Contact Our Mortgage Department
Laura Nickens, Mortgage Manager
Direct Number: (225) 298-4781
Fax: (225) 293-7790
mortgagedept@dowlafcu.org
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