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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?

We have flexible interest rate and point options, however, a 1% origination fee is included in all APRs. You can choose to pay zero points by accepting a higher interest rate. By paying more points, you can obtain a lower interest rate and monthly payment. 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 complete application, we can usually close in 30 to 45 days.

What is a complete application?

A complete application is considered to be the names of all applicants, their social security numbers, their income, the estimated value of the property, the loan amount and an identified property. In the case of purchases, it also includes a fully executed sales contract.

What does "pre-qualified" mean?

Pre-qualified means that we have reviewed your application and conditionally approved your loan request based on our credit criteria. Final approval will be issued once you have signed a sales contract and we have verified all the application information.

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 and your application fee. Once you have locked in your rate, that rate is set for 50 days unless the terms of your loan change.

What closing costs are involved in getting a mortgage?

The estimated cost of closing will range from 3% to 5% of the loan amount. Some costs vary depending on how many discount points you pay while others are based on the loan amount and/or the sale price of the home. Once we receive your complete application, we will provide you with a Good Faith Estimate of the closing costs.

What is "our origination charge" on the Good Faith Estimate?

This item contains the charges for services performed by or for Virginia Credit Union to process and complete your mortgage loan request. It will include the origination fee, an underwriting fee and may include other appropriate charges specific to the transaction.

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

It depends on the loan program that best fits your needs. Please contact Member Services at (804) 323-6800 or (800) 285-6609 and we will be glad to help you evaluate various options.

Will you sell my mortgage loan?

We may sell some of our mortgage loans; however, we service almost every new loan we make. This means you'll make your payments to VACU and get personal assistance from us when you have questions.

Do you offer construction loans for homes?

No. While we don't currently 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 is subordination?

A subordination is an agreement between two lenders that describes what lien position each lender will be in when a property is refinanced. The subordinate lien is sometimes referred to as "second place" or "second position." It is most commonly used when two mortgages are on a single property.

Does VACU offer subordinations?

Yes, we do. There is a cost for processing a subordination. Please contact Member Services at (804) 323-6800 or (800) 285-6609 for more information.

How long will it take to process a subordination request?

Subordinations are generally completed in 7 – 10 business days after the request is received.

What is Combined Loan to Value (CLTV)?

CLTV is the total of the first mortgage and the second mortgage in comparison to the appraised value of a property.

What is the maximum Combined Loan to Value (CLTV) that VACU will accept?

VACU will accept a CLTV of 90% or less. Loans with a higher CLTV will be reviewed on a case by case basis.

Is an appraisal required as part of the subordination process?

Yes, it is. If the new first mortgage lender does not require an appraisal as part of the refinance, VACU will review the request on a case by case basis, and determine if we will be able to proceed.