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?

The time it takes to close a mortgage loan varies with the type of mortgage, and buyer and homeowner situations. In general a mortgage loan takes between 45 and 60 days from application to close. However, an incomplete application can delay the process. When documents are requested, try your best to respond immediately. We want to close your loan quickly and need a completed applications to make a final approval decision.

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 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 is a complete application?

A complete application means that you have submitted everything that the mortgage lender requires to evaluate your request for a loan. Generally it requires information about your assets, income and debt, the value of the property and the loan amount. For purchases it also includes a fully executed sales contract.

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 is "our origination charge" on the Loan 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.

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?

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

What is a 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 us 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, and there is a cost for processing a subordination.

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.

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.

Is there a maximum Combined Loan to Value that VACU will accept?

Combined Loan to Value is reviewed on a case by case basis, so please talk with your mortgage consultant.