Mortgages – Local Experts • In-House Decisions
Top Tier Federal Credit Union offers traditional fixed rate mortgages up to 30 years for purchase or refinance. Purchases can be made with as little as 5% down.
Construction mortgages are available up to 30 years on stick build, modular or manufactured homes with a required down payment of 20%. During the construction period interest only payments are made. For more details on construction mortgages please give us a call.
An adjustable-rate mortgage is available with a 30 year term with a rate adjustment every 5 years.
1. Which Mortgage Product is Right For You? – You will meet with one of our local experts to discuss products, terms and rates.
2. Pre-Qualification (optional) One of our local experts will help you determine how much you qualify for. A credit report will not be pulled.
3. Pre-Approval (Optional) – One of our local experts will help you determine how much you could be approved for. A credit report will be pulled. Minimal documentation is requested.(Bank Statements, Pay Stubs, W2s)
4. Mortgage Application – You will complete your application once you are ready to move forward. Our local experts will assist you throughout this process and request additional documentation.
5. Signing of Early Disclosures – Upon receipt of your signed application, your Mortgage Loan Officer will deliver estimates of your monthly payment and closing costs. Appraisal and credit report fees will be due upon signing.
6. Underwriting/Processing the Loan – Your Mortgage Loan Officer will review your application. At this time, verification of income and employment will be completed with your employer.
7. Ordering the Appraisal – An appraisal of the purchase property will be ordered from a licensed appraiser. During this process, your Mortgage Loan Officer will request proof of homeowners insurance.
8. Loan Approval – When the underwriting is complete and if the appraisal shows adequate value, your Mortgage Loan Officer will notify you of the loan approval and next steps!
9. Signing of Closing Disclosures – At least 3 days prior to closing, your Mortgage Loan Officer will deliver a statement of the final terms and closing costs. You will sign and return this after your review.
10. Closing the Mortgage – You will meet with your closing agent to finalize the purchase of your property. Your down payment and closing costs will be due at this time.
1. Discussion of Construction Loan terms and rates – 20% Down Payment is Required on all Construction Loans.
2. Pre-Approval (Optional) – Completion of Pre-Approval Process. Credit report will be run.
3. Loan Application – Our local experts will assist you throughout this process and request additional documentation:
• Bank Statements, Pay Stubs, W2s
• Contractor Information – Only one general contractor permitted. Borrower cannot be general contractor.
• House Plans/Specs, building permits, detailed cost of construction, Certificate of Liability Insurance coverage and contractor signed contract.
• Draw Schedule – Contractor’s plan of funds disbursement after each phase of construction has been completed and inspected. Construction must be completed within one year.
4. Signing of Early Disclosures – Upon receipt of your signed application, your Mortgage Loan Officer will deliver estimates of your monthly payment and closing costs. Appraisal and Credit Report fees will be due upon signing.
5. Ordering the Appraisal/Underwriting – Your Mortgage Loan Officer will verify your employment and income with your employer. An appraisal of the project will be ordered through a licensed appraiser.
6. Provide proof of insurance – Your mortgage loan officer will request proof of homeowner’s insurance with builder’s risk coverage.
7. Final Loan Approval – When the underwriting is complete and if the appraisal supports the value of the construction project, your Mortgage Loan Officer will notify you of the loan approval and next steps!
8. Signing of Closing Disclosures – At least 3 days prior to closing, your Mortgage Loan Officer will provide you with a statement of the final terms and closing costs. You will sign and return this after your review.
9. Closing the Construction Loan – You will meet with your chosen settlement agent to sign and finalize the construction loan. The settlement agent will collect all closing costs and will forward your down payment for deposit into a Credit Union holding account. The Credit Union will disburse all funds based on the general contractor’s provided draw schedule.
10. Payment – During the construction phase, you will pay interest and escrow on the 18th of each month . Upon completion of the construction phase, you will begin paying the regular monthly payment on the first of each month. Next step: Move into your new home!
LTV – Loan to Value (Amount borrowed compared to Appraised value)
PMI – Private Mortgage Insurance (Required on loans over 80% LTV)
MI – Mortgage Insurance (Same as PMI)
DTI – Debt to Income (Amount of monthly payments compared to income)
PITI -Monthly Payment (Principal, Interest, Taxes and Insurance)
ARM – Adjustable Rate Mortgage
Mortgage – A loan in which property or real estate is used as collateral. The borrower enters into an agreement with the Credit Union wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the loan in full.
Fixed Rate – Your rate is fixed for the term of the mortgage
Escrow – Amount added to your monthly payment for (Property Taxes, Insurance and PMI)
Hazard Ins. – Homeowners insurance on your property (Fire Insurance)
Flood Ins. – If the property is in a flood zone you will need to carry flood insurance
Appraisal – A licensed appraiser will evaluate the property, based on regulated guidelines, to establish a value on the property.
Mortgage App. – An application that is completed with mortgage details including the borrower’s name, social security number, current address, employment and income information, loan amount and loan terms.
Early Disclosures – Forms provided to the borrower within three days of completing the mortgage application. For example, the Loan Estimate. This form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan.
Closing Agent – The attorney or title company of your choice who will handle the final closing for you including the recording of the mortgage and the transfer of the deed.
Closing Disclosure – A form that provides final details about your mortgage loan. It includes the loan terms, your monthly payments and how much you will pay in fees and other costs to get your mortgage (closing costs). Three days prior to closing, you must sign the disclosure.
Closing – Once the mortgage has been given final approval, you will meet with your closing agent to sign final documents and provide the borrower funds needed for closing.
(814) 226-5032
mortgages@toptierfcu.org
Top Tier Federal Credit Union 2024