Question #1
What are the rates?
Answer:
The interest rate on your particular mortgage will depend upon several factors. For example:
Are you wanting a fixed rate or adjustable rate? Both fixed and adjustable rate loans are available. Sometimes an adjustable rate loan is the better deal for a particular scenario, sometimes a fixed rate.
Will this be the only mortgage on your property, or is it a second mortgage? Loans that are first in line in event of default are more secure, and therefore offer lower rates and better terms.
How long do you want to pay off the mortgage? We offer loan terms up to 30 years. Length of the loan will affect what interest rate we can offer.
Question #2
What will it cost to refinance my home?
Answer:
Closing expenses vary greatly on home loans depending on what loan you are applying for and how much money you want. Anytime you apply for a home loan, you will receive a Good Faith Estimate of closing costs within 3 days of our receipt of the application.
Question #3
How do I know if I qualify for a home loan?
Answer:
If you want to know whether or not you may qualify to purchase a new home, call us to get a loan application and fill it out as if you have a home to buy already (you don’t need an address). We can pre-qualify you for the purchase with no expense to you. If you want, we can even do pre-approvals (this means we will also verify employment, funds to close, credit history, etc) and will still cost you nothing.
Question #4
What is the difference between a Pre-Qualification and Pre-Approval?
Answer:
Most real estate agents will ask you if you’re pre-qualified or pre-approved for a mortgage loan. To be pre-qualified, you will know, based on your income and expenses, what you can afford to pay for a home. To be pre-approved, it means that your credit history, employment history, and assets have been verified and approved to loan up to a certain amount under a specific scenario. If you have been pre-approved for a home loan then you cannot be turned down, but the particular property has not been determined or approved as of yet.
Question #5
How long will it take to complete my loan?
Answer:
The length of time to complete a mortgage loan can vary greatly depending on what reports that must be done and where the property is located. If a loan is larger and more complex, likely it will take longer to close. If a property is located in a rural part of the state, then there may be only one title company for the entire county and few appraisers may go there and take longer to finish their work due to limited sales data in the area.
Question #6
Will you finance properties in my location?
Answer:
We do mortgage loans anywhere in Oklahoma.
Question #7
Will my loan be sold?
Answer:
The credit union does not sell servicing on loans that we originate. If we originate your mortgage, we will service it for the entire term of the loan.
Question #8
What are all these fees on other Good Faith Estimates?
Answer:
If you are shopping around for a good deal on refinancing your house, or purchasing a new one, you may be confused with the different expenses shown on good faith estimates that are not necessarily shown on ours. The reason for many of those expenses is we don’t add costs to your loan to do our job. We will help you compare if you bring in the forms to us.
Question #9
How much do I have to put down to purchase a home?
Answer:
We offer purchase loans up to 100% of the purchase price for primary residence properties. Does this mean you will have no costs to purchase the property? No. You will have to pay your own closing costs and prepaids (a minimum of 3% of the purchase price), but gift money can be accepted in many cases. However, purchase loans over 95% of the purchase price will have higher interest rates and mortgage insurance.
Question #10
Will you finance mobile/manufactured home?
Answer:
We offer financing for Double-wide manufactured homes with terms and rates similar to homes built on site if they meet certain standards of construction. For single-wide mobile homes (whether or not permanently affixed to the land) we offer limited financing.
Question #11
Why did my escrow payment go up?
Answer:
Escrow accounts are set up to pay Homeowner’s Insurance, Mortgage Insurance, Flood Insurance, and Taxes on your property. The only reason for your escrow payment to increase is that your insurance or taxes (or both) have increased. You will receive an Escrow Disclosure Statement in January of each year to let you know what has happened in your escrow account during the past year and what to expect in the coming year.
Question #12
What are all these forms that you have given me with my application?
Answer:
With every real estate loan application we give out, the credit union must inform you of your rights and responsibilities regarding real estate transactions. Each of these forms relates to a specific law in real estate transactions. Please sign these forms where indicated and retain a copy for your records. The information found on these forms is very important, and you may want to refer to it during and after your transaction.