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.
- Selecting the type of mortgage
- Applying for your loan
- Loan processing
- Loan decision
- 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.
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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 get started with your Virginia Credit Union loan:
- Prequalify online
- Call Member Services at (804) 323-6800 or (800) 285-6609 to prequalify by phone
- We are glad to meet with you in person to help you complete the application. Call Member Services at (804) 323-6800 or (800) 285-6609 to schedule an appointment.
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 have submitted your application, we will begin processing your request. Documents will be sent to you containing important information regarding your new mortgage. Please review and retain them for your records.
An application fee will be collected that will be applied to the costs of your mortgage, such as appraisal, credit report and flood certificate.
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.
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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 Member Services at (804) 323-6800 or (800) 285-6609.
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