Process Overview
Buying
or refinancing a home is easier when you know what to expect. Here's
a step-by-step guide to our mortgage loan application and
closing process.
1. Selecting the type of mortgage
2. Applying for your loan
3. Loan processing
4. Loan decision
5. Document preparation & closing
1. Selecting the type of mortgage
We
can help you evaluate your options based on:
- How much you want to spend on your new home
- How much money you have
for a down payment
- How long you plan to stay in your new home
- How much you can afford
for your monthly payment
- Your monthly income
- Your total debt
You should strongly consider getting pre-approved for a set loan amount
before you go house shopping. That way you can move quickly when
you find the home you want. A pre-approval letter is a tool that
says to the seller you’re
serious about your intent to buy and that your offer is valid.
2. Applying for your loan
The loan application will ask questions about
you, your finances and the property.
- Borrower information – The basics about you
- Income – Where
you work and how much you earn
- Assets – Source of funds for your
down payment and closing costs
- Property information – Approximately
how much you plan to spend
There are several ways to apply for your Virginia Credit Union loan:
Having all the necessary
information when you apply saves time.
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3. Loan processing
A loan advisor will contact you to introduce himself or herself.
Your loan advisor will be a mortgage expert who will answer your
questions and provide help along the way.
Once you've submitted your application, your request will be reviewed.
A kit will be sent to you containing papers for you to review and
sign, a Good Faith Estimate of the closing
costs and a
list of documents you need to provide in order to verify your assets
and income.
Your credit history will be reviewed at this time by ordering a credit
report. If that is determined to be satisfactory, the property
will be reviewed by ordering an appraisal. Depending on your finances
and the loan
amount requested,
different
types of appraisals
are used. The appraiser may be able to do the evaluation from the
street or may need to view the interior of the home.
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 $350.
During the application process, you should avoid doing any of the following,
which could impact your ability to qualify for a mortgage.
- Do not change jobs. Changing jobs immediately
before or during the application process may cause problems,
especially if the new job is in a different line of work or if
there is a reduction in pay.
- Do not make major purchases. The addition
of a large monthly payment, such as a new car or furniture, may
affect your ability to qualify for the mortgage you requested.
- Do not move money from one financial institution to
another. Transferring money from one financial institution
to another may cause delays in obtaining loan approval. Leave
deposits in the same account until your loan has closed.
If you must do any of the above, please contact your loan advisor.
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4. Loan decision
The final decision of the loan involves reviewing
the property, your loan application information, a specific loan
amount and a loan program
based on your income, debts and assets. You will be notified of
the decision in writing.
Once final approval is given, the loan will be prepared for closing.
5. Document preparation & closing
We will prepare the
loan documents for you and send them to an attorney or mortgage
settlement company in your area for signing. This is often
referred to as closing or settlement.
Title insurance will be necessary whether you are purchasing or refinancing
your home and we will order this for you. We'll use the title insurance
policy to confirm the legal status of your property and to prepare
documents for your closing. In
most cases, we will set up escrow for payment of real estate taxes
and homeowners insurance.
Homeowners insurance will
be required as a part of closing. You will need to provide your
closing agent with all information related
to insurance prior to your closing date.
You can schedule a date with your closing agent that is convenient for
you. If you are purchasing a home, you'll also coordinate the
closing with the real estate agent as well as the seller.
Once we receive the signed documents, we will disburse the loan funds
and record the documents at the local government clerk’s office.
If you have any questions or if we can help you in any way, please contact us.
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