(814) 226-5032 | info@toptierfcu.org | Routing Number: 243380192 | Contact Us | | |

Mortgages – Local Experts • In-House Decisions

Find The Mortgage That's Right For You

Traditional Fixed Rate Low-Down Payment

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

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.

Adjustable Rate

Adjustable rate mortgages are available from 10 to 30 year terms with a rate adjustment every 5 years.

Mortgages 101: What You Need to Know

1. Which Mortgage Product is Right For You? – Discussion of products, terms and rates.


2. Pre-Approval (optional) – Completion of Pre-Approval Process. Credit report will be run.


3. Mortgage Application – Complete application. Provide documents (Bank Statements, Pay Stubs, W2s). We will assist you throughout the application process.


4. Signing of Early Disclosures – Within 3 day of receiving your signed application, we will provide estimates of your monthly payment and all loan fees. Documents will need to be signed and returned along with payment for the appraisal and credit report.


5. Acquire Homeowners Insurance.


6. Ordering the Appraisal/Underwriting – We will review your application and verify your employment and income with your employer. We will order the appraisal from an approved appraiser.


7. Final Loan Approval – When the underwriting is complete and if the appraisal supports the value of the property, we will contact you about the loan approval.


8. Signing of Closing Disclosures – We will provide you with a disclosure that itemizes your final closing costs. This must be signed and returned to us at least 3 days prior to closing.


9. Closing the Mortgage – The closing will be done with your chosen settlement agent or attorney  to finalize the purchase of your property. The down payment and closing costs will be due at this time.

Construction 101: What You Need to Know

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 – Complete application. We will assist you throughout the application process.

Supply documents and information:

• 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 – Within 3 day of receiving the signed application, we will provide the estimates of your monthly payment and all loan fees. Documents will need to be signed and returned. Payment is due for the appraisal and credit report.


5. Provide proof of Builder’s Insurance.


6. Ordering the Appraisal/Underwriting – We will review the application and verify your employment and income with your employer. We will order the appraisal from an approved appraiser.


7. Final Loan Approval – When the underwriting is complete and if the appraisal supports the value of the construction project, we will contact you about the loan approval.


8. Signing of Closing Disclosures – We will provide you with a disclosure that itemizes your final closing costs. This must be signed and returned to us at least 3 days prior to closing.


9. Closing the Construction Loan – The closing will be done with your chosen settlement agent or attorney to finalize the construction loan. The down payment and closing costs will be paid to your settlement agent or attorney at this time for deposit into a Credit Union holding account. The Credit Union will disburse funds based on the general contractor’s provided draw schedule.


10. Payment – You will pay the interest and escrow payment on the 18th of each month during the construction phase. Once the construction phase has been completed, you will begin paying the regular monthly payment on the first of each month.

Definition of Terms

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.

Contact Our Mortgage Division

(814) 226-5032
mortgages@toptierfcu.org

Top Tier Federal Credit Union 2024