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 difference between interest “rate” and “APR” (annual percentage rate)?

The interest rate percentage reflects the annual cost of the loan to the borrower, without fees charged for the loan. The annual percentage rate (APR) reflects the effective annual cost including interest and certain fees or other charges, such as loan origination fees, points, most closing costs, and if applicable, mortgage insurance. When comparing different options, you will want to consider not only the interest rate but also the APR, which is helpful in comparing certain mortgage loan costs.

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

The time it takes to close a mortgage loan varies with the type of mortgage, and buyer and homeowner situations. A mortgage loan for a home purchase can take as little as 30 days from application, but this will vary depending on the closing date listed on the sales contract. A mortgage refinance generally takes between 45 and 60 days from application to close. An incomplete application can delay the process.

Once we start the application process, it’s vital to get your required information and documents to us at the requested time. We want to close your loan quickly, and we need your help to ensure we have a completed application and all supporting documentation to make a final approval decision.

What does "pre-qualified" mean?

Pre-qualified means that we have reviewed your application and credit report and determined your loan request meets program parameters. 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 up to 10 business days prior to your loan closing, as long as we have your completed application, the property address for your refinance or new home, and your application deposit. Once you have locked in your rate, that rate is set for the lock period chosen 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. 

What are "Origination Charges" on the Loan Estimate document?

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.

Will you sell my mortgage loan?

We may sell some of our mortgage loans; however, with the help of our trusted servicing partner, we maintain the servicing for almost every new loan we make.

Do you offer construction loans for homes?

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 you have plans, specifications and a signed contract, and you're ready to refinance your construction loan with a permanent loan.

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.