MORTGAGE FAQ'S
TYPES OF MORTGAGE AND RATES WE OFFER:
Do you make mortgages for purchases & refinances?
We offer mortgage loans for personal use of Primary Residence only, for Purchase or Refinance of Single Family Homes (1-4 Unit), Town Homes, and Condominiums in the St. Louis Metropolitan area.
What types of mortgages do you offer?
We offer FHA, Conventional, VA and USDA loans.
What are the loan amount limits?
The minimum Loan Amount for all programs offered is $40,000.00
The maximum Loan Amount can vary based upon Loan Type, Property Type, and other factors.
What type of mortgage is best for me?
We will work with you to help determine what mortgage type(s) and terms you are qualified for once your application is submitted and credit reports pulled. We will then explain available options to assist you in selecting the best mortgage type for you.
How much money I will need for a down payment?
FHA: 3.50% of the purchase price, plus closing costs
Conventional: 5% of the purchase price, plus closing costs (In some cases, only 3% of purchase price is required for credit-worthy low-to moderate income borrowers and/or homes in low-income communities.)
VA: 0%, subject to VA eligibility
USDA: Possibly 0%, subject to USDA Property Eligibility
Do you offer down payment assistance?
Down payment assistance may be available. Each pre-qualified applicant is reviewed to determine Down Payment Assistance Eligibility. We work with several non-profits and City agencies that provide assistance options for those that meet their qualifications. Completion of Home Buyers Education course is required to receive Down Payment Assistance.
What are your mortgage rates?
Mortgage rates can vary throughout the day. You may view our current Mortgage rates here.
Is there any prepayment penalties charged for these loan programs?
The loan programs we offer do not have prepayment penalties. You can pay off your mortgage whenever you choose without additional charges.
What is SLCCU’s relationship with Carrollton Bank?
We realize your mortgage is one of the most important financial decisions you will make. SLCCU is a partnered broker with Carrollton Bank who originates the first mortgage loans. We are combining our efforts to provide you with the best loan products and service possible. Carrollton Bank is a partner with us and has been in business since 1877. By working together we can often find solutions for your mortgage needs.
What is SLCCU’s Mortgage Loan Originator (NMLS) Number?
SLCCU’s NMLS number is 616755
Carrollton Bank’s NMLS number is 719258
Are there any prepayment penalties charged for these loan programs?
None of the loan programs we offer have prepayment penalties. You can pay off your mortgage whenever you choose without additional charges.
Will my loan be sold?
In most cases, loans will be sold and will be serviced by another party which currently includes Carrollton Bank and NewRez LLC. Where the loan will be serviced is determined closer to when the loan is finalized and all final figures are determined including loan type, LTV, and other factors.
What is your Rate Lock Policy?
Lock-in Agreement
Locking in an interest rate protects you from interest rate changes from the time your lock is confirmed to the day the lock expires. Your rate will be fixed during the lock period regardless if interest rates rise or fall.
When can I lock?
We are able to lock a rate only after you have found a property and have accepted sales contract, are approved after being prequalified, and we have reviewed all required documentation.
Cost to lock
We do not charge a fee to lock your interest rate.
Period of Lock
We currently offer 30, 45, 60, and 90 days – which means you must close and disburse your loan during the Rate Lock period. We must lock your rate 10 days prior to close. Extensions of the rate lock-period due to delays in providing documentation for the review process may result in additional closing costs.
APPLYING FOR A HOME LOAN:
How do I apply?
You can apply on SLCCU website by clicking on Loans, Home Loans First Mortgages, apply online.
Can I apply in person or over the phone?
We are only able to accept application submitted through our website at this time.
What information will I need to apply?
You will need general information about each applicant including social security number and income details. We recommend having a recent paystub from your current employer and prior year tax returns available to assist you in answering the questions during the application.
Can I apply for a loan before I find a property to purchase?
We strongly recommend that you get Pre-Qualified for a mortgage loan before you find a home. Once an application is completed, necessary documentation is provided and reviewed, a Pre-Qualification Letter will then be provided. The Pre-Qualification letter outlines the type of loan & amounts you are Pre-Qualified for.
How much does it cost to get Pre-Qualified?
There is no cost or obligation to get Pre-Qualified. To start the process, just apply on our website.
UNDERWRITING:
What's the difference between Initially Eligible, Pre-Qualified and Approved?
Initially Eligible: You have been qualified for the mortgage amount requested subject to verification of the information in your application including the home.
Pre-Qualified: We have verified the information you provided and approved you for a specific loan amount subject to determining the value of the home you wish to purchase or refinance.
Approved: We have verified the information you provided including the value of the home securing the loan and you are authorized to proceed with a loan closing.
How long will it take to for my Loan request to be reviewed & to receive an initial decision?
We will contact you with a decision within 1 to 2 business days from the time your application is submitted. Denials are generally submitted to the email address on the application. A denial letter will be sent via mail within 30 days of the application status, in addition to the denial email.
What is the maximum percentage of my home's value that I can borrow?
The maximum percentage we can lend based on your home’s value depends on the purpose of the loan, the loan type you choose, and the use of the property. The best way to determine your loan amount is by completing our on-line application.
How will my credit score affect my application?
We look at the total picture of the applicant before making a loan decision. Credit Scores are one piece of information we use to evaluate your application.
How will a past bankruptcy or foreclosure affect my ability to obtain a new mortgage?
A previous bankruptcy or foreclosure may negatively impact your ability to get a new mortgage.
We generally require that a minimum of 2 years have passed since the bankruptcy and/or the property has been removed from your name for 3 years for foreclosure and short sales.
In addition, it is important to re-establish acceptable credit history with new loans and credit cards after the event.
Does SLCCU refinance loans that have been modified?
At this time, SLCCU does not refinance loans that have been modified.
What information will you need to complete a Pre-Qualification and issue a Pre-Qualification Letter?
We will need your paystubs from the previous 30 days, two previous year tax returns, W2’s and bank statements from previous 60 days. If you are refinancing, we’ll also need your most recent mortgage statement(s) and homeowner’s insurance bill.
There are usually additional documents needed during the loan process, so please expect to provide additional items as the review moves forward.
LOAN CLOSING:
How much money will I need to close?
You will need sufficient funds to cover Down Payment Requirements and Closing Costs. In some cases, adequate reserves for all Real-Estate owned may be required for a specified period of time. This is reviewed and determined after the application is received and initial review process is completed.
How much are closing costs?
A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, state or local taxes which vary between Missouri and Illinois as well as funds to establish an escrow account. Additionally, these costs can vary based upon the loan amount, servicer as well as the costs of products you can shop for. Once we receive a completed application we can review to determine estimated closing costs.
Are there any fees before closing?
An Application Deposit of $500 will be due to Carrollton Bank once a Property Address is added to your application and you give your intent to proceed with the loan closing. The deposit is used to fund third-party expenses that may be incurred on your behalf during the loan process, such as Appraisal, Credit Report, Flood Letter, or any other verification or certification needed to close your home loan. If the Application Deposit is not collected when due, it could delay the processing of your mortgage.
Do I get the application deposit back?
When your loan closes, the $500 deposit is credited toward your closing costs. If your loan does not close, for any reason, and third-party services were obtained to process your home loan (Appraisal, Credit Report, Flood Letter, other Verifications, etc.) this deposit will be used to pay third-party fees up to $500. Any costs over $500 will not be charged to you. Any amount of your $500 deposit not used, will be refunded to you via check within 30 days by Carrollton Bank.
How much will I need to start my escrow account?
If it is also necessary to establish an escrow account at the time of loan closing, you will need to make an initial deposit to cover the cost of taxes, homeowners’ insurance or private mortgage insurance. These costs can vary based upon the loan amount, annual property tax amount and servicer as well as the costs of products you can shop for.
How long will it take before my Approved loan is ready to close?
When your loan closes, the $500 deposit is credited toward your closing costs. If your loan does not close, for any reason, and third-party services were obtained to process your home loan (Appraisal, Credit Report, Flood Letter, other Verifications, etc.) this deposit will be used to pay third-party fees up to $500. Any costs over $500 will not be charged to you. Any amount of your $500 deposit not used, will be refunded to you via check within 30 days by Carrollton Bank.