Mortgage Loans
What is the difference between pre-qualified and pre-approved?
A pre-qualification is not a full mortgage approval, but is an estimation of what you can afford. The loan officer collects basic financial information regarding your income, monthly debts, credit history, and assets, then uses this information to calculate an estimated mortgage loan amount for you.
A pre-approval is a comprehensive decision using the same basic financial information as well as an electronic credit report. Pre-approvals, in most cases, are true mortgage commitments. The Credit Union commits to financing your home and indicates the total mortgage loan amount available to you.
If I am pre-approved, how long is my pre-approval good for?
A pre-approval is good for a maximum of 60 days, without having to complete a second review of your credit, verification of employment, verification of deposits, property value, etc.
What are mortgage points?
Mortgage points allow you to lower your interest rate. They are pre-paid interest with each point equaling 1% of the loan amount.
How is the Loan-to-Value (LTV) calculated?
The Loan-to-Value (LTV) is the outstanding loan amount divided by the appraised property value or purchase price.
What is Private Mortgage Insurance (PMI) and what is the cost?
Private Mortgage Insurance (PMI) is required on mortgages financed at above 80% Loan-to-Value (LTV) and protects the lender from loss through default. The cost is based on the specified LTV premium multiplied by the Loan Amount, divided by 12.
When do my mortgage payments start?
Your first mortgage payment is usually 30 days after closing. The actual date of your first payment will be included in your closing documents.
What is the step-by-step process for obtaining a Western Mortgage Loan?
- Request a Western Mortgage Packet.
- Complete and send back your packet.
- A Western Mortgage Representative will process your packet within three business days upon receiving your completed packet.
- Once pre-approved, a Conditional Pre-approval Letter, Good Faith Estimate, and an initial Truth-in-Lending Disclosure Statement will be sent to you for your signature.
- Sign and return the pre-approval packet documents along with the required documentation requested.
- The approximate processing time is 15 to 20 business days.
What documents should I have to expedite the mortgage loan process?
To expedite the mortgage loan process, have the following items available:
- Information on all assets - 401(k), cash deposits, Term Certificates, etc.
- W-2s from the last two years
- Signed federal tax returns for the last two years (with schedules if you are self-employed or received rental income)
- Long-term debt information (credit cards, child support, auto loans, installment debt, etc.)
- Two most recent pay stubs
For refinancing, you will also need the following:
- Most recent Property Tax Bill (if available)
- Most recent Mortgage Loan Statement
- Copy of your current Homeowner's Insurance Policy
