Mortgage FAQs

What is a point?

Are there any points charged on a mortgage?

What is the turnaround time, from application through closing, for purchases and refinances?

What up front fees are associated with applying for a mortgage through the credit union?

What does “pre-approved” mean?

When and how do I lock in my rate? Can I change my rate once I have locked in my rate?

You estimate closing costs to be approximately 3% - 5% of the loan amount. Why is that such a wide range?

What is the maximum percentage I can borrow (or refinance) based on the value of my home?

Will you sell my mortgage loan?

Do you offer construction loans for homes?

What programs do you have for first-time homebuyers?

Additional mortgage FAQs > >

What is a point?
A point is equal to one percent of the loan amount. For example, if you get a mortgage for $100,000 with one point, you’ll pay $1,000 in points as part of your closing costs.

Are there any points charged on a mortgage?
Our rates are quoted with one point. You can choose to pay zero points and get a higher rate or you can pay additional points to get a lower rate. We will be glad to help you evaluate various options.

What is the turnaround time, from application through closing, for purchases and refinances?
Once we have a property address and completed application, we can usually close in 20 to 30 days.

What up front fees are associated with applying for a mortgage through the credit union?
There are no up front fees to apply for a mortgage. An appraisal fee will be part of your closing costs and will be reflected on your final settlement statement you receive at closing. If you apply for your mortgage and the appraisal has been completed but you do not close on your loan with the credit union, you will be responsible for reimbursing us for a fee of approximately $425.

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What does “pre-approved” mean?
That means we have approved your loan based on your credit criteria and debt-to-income ratio. That approval is good for 90 days. If you don’t go through with your loan within that timeframe, you’ll need to re-apply.

When and how do I lock in my rate? Can I change my rate once I have locked in my rate?
You can lock your rate at any time as long as we have your completed application and the property address for your refinance or new home. Once you have locked in your rate, that rate is set for 50 days unless the terms of your loan change.

You estimate closing costs to be approximately 3% to 5% of the loan amount. Why is that such a wide range?
We don’t want you to have any surprises, so we tell you up front the approximate total cost, which may vary considerably. The percentage you should allow for closing costs is affected by how many points you pay. Attorney’s fees, recording fees, appraisal fees, etc. also affect it because these fees may vary. Closing costs also include “prepaids” which are the flood certification fee, underwriting fee, interim interest and the deposit for any real estate taxes and homeowners insurance. Some other lenders may not include these prepaids when they initially quote their closing costs, but these prepaid amounts will be due at closing.

What is the maximum percentage I can borrow (or refinance) based on the value of my home?
It depends on the loan type. On a conventional fixed-rate loan, you can purchase your home with as little as 5% down. You can refinance up to 90% of the value of your home. See Mortgage Programs at Virginia Credit Union for other percentages.

Will you sell my mortgage loan?
To serve the various borrowing needs of our large membership, we may sell mortgage loans through the secondary market. However, we service almost every new loan we make. This means you'll make your payments to the credit union and get personal assistance when you have questions.

Do you offer construction loans for homes?
While we don’t offer construction loans—a loan to cover the cost of building a new home—we hope you’ll contact us when your house is nearing completion and you’re ready to refinance your construction loan with a permanent loan.

What programs do you have for first-time home buyers?
We have several programs for first-time buyers. See Mortgage Programs at Virginia Credit Union and then contact us for personal assistance and answers to all your questions.

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