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Mortgage Resources

 

Mortgage Calculators

The following online calculators serve as helpful tools during the mortgage process.

  • Payment/Amortization
    Calculate your monthly payment and see how the principal is paid over time.
  • Rent vs. Own
    Calculate the difference between renting and buying a home.
  • Annual Percentage Rate (APR)
    Calculate the APR for fixed-rate or adjustable-rate loans.
  • Debt Consolidation
    Determine if you can consolidate your debt by combining it with your home mortgage.
  • Prepayment Savings
    Find out how soon you can pay off your mortgage by making a prepayment.
  • Early Payoff
    Determine the additional monthly payment amount needed to pay off the loan sooner.
  • Refinance Break-Even Point
    Find out how long it will take to "break-even" on a refinanced loan.
  • Tax Savings
    Determine the estimated tax savings with a new loan. The information provided by these calculators is for illustrative purposes only.

The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. The calculated results are intended for illustrative purposes only and accuracy is not guaranteed

Required Documents

We'll need some basic documents before you start looking for a loan. Collect all the information listed below in one spot and you'll be ready to speak to a Mortgage Loan Originator about a mortgage loan. What you'll need:

  • Name
  • Social Security Number
  • Monthly income for you and your co-borrower (most recent pay stub(s) with year-to-date income), includes bonuses, commissions and overtime income for the past two years (this information is on your tax return)
  • If you are self-employed, you will need the last two years' tax returns for the type of business you own: Sole Proprietorship (schedule C), Partnership (Form 1065), or Corporation (Form 1120 or 1120s). In addition, the last two years' personal tax returns (including K-1s).
  • Property address for purchase
  • Amount you would like to borrow

Down Payments

Getting your nest egg together for a down payment is probably the biggest hurdle for many first-time homebuyers. You may already be worth more than you realize. When calculating your assets, be sure to include ALL of the following sources:

  • All checking and savings accounts
  • Stock, bonds, stock options, 401k value
  • 401k Loan
  • Gifts from family

Your bottom line just might be better than you think. Know your assets. It's the first step in coming up with the amount of money you need to secure your interest in the home and the loan you want. What if it doesn't add up to the right amount? Don't give up hope. Your AFCU Mortgage Loan Originator can assist you in identifying the right loan type for you.

Making Your Offer

You've found a house you love. It has the perfect living room or that playroom you've always wanted for the kids. But, it's not yours yet. First you have to make an offer, in writing, and submit it to the sellers. This is usually done through your real estate agent or directly with the seller. The seller usually has 24 to 48 hours to consider your offer or make a counter offer, which means, under the terms you offered, they want to sell you their house, but they want a change.

Inspections

It's always wise to make your offer "contingent on inspection," and ensure the home has been carefully examined by a qualified home inspector who is trained to take a critical look at various aspects of the home including:

  • Foundation
  • Plumbing
  • Heating and cooling system
  • Electrical system
  • Roof
  • Windows and doors
  • Siding
  • Exterior grading (to make sure water drains away from house)

Escrow Accounts

With an escrow, homeowners are protected from the possibility of losing their homes for missing tax payments. The escrow account will advance the funds to cover any unexpected increase in tax or insurance payments, which may result in higher monthly payments.

Mortgage Insurance

As you progress through the home buying process, the question of insurance will be raised. Here are the basic types of insurance you should know something about. Be aware that most policies contain standard exclusions and exceptions.

  • Homeowners Insurance - covers fire, theft, certain natural disasters, and personal liability if someone is injured on your property. It protects the lender against the loss of the property securing your mortgage. You'll have to prove that you have adequate homeowner's insurance as a condition of obtaining a mortgage.
  • Title Insurance - Several things happen behind the scenes when you buy a house. For example, we will have someone perform a title search to make sure the seller has a legal right to transfer ownership, and to see if there are liens or restrictions on the property. A lawyer, abstractor, or employee of the title company does the title search. Title insurance provides protection against financial loss in case a defect in the title turns up at some future date.
  • Private Mortgage Insurance - When you finance more than 80% of the value of your home, we may require you to buy mortgage insurance. Mortgage insurance makes it possible for people with small down payments to buy the home of their choice.
  • Flood Insurance - Flooding is not covered by a standard homeowner's policy. To determine if you need flood insurance, ask your insurance professional about flood history in your area. If there is a potential for flooding, you will be required to purchase a policy that covers the structure and your personal belongings.
  • Mortgage Life Insurance - This coverage can reduce or pay off your mortgage if you die before the loan is repaid. It generally is decreasing term life coverage. The benefit payable matches your mortgage balance.

Fees at Closing

Here is a list of fees you should typically expect to pay at closing; there may be more or fewer:

Buyer Fees

  • Credit Report - Done by an independent credit association to establish your credit rating
  • Appraisal - Done by an independent appraiser to establish the value of the house
  • Inspection - Done by an independent home inspector to provide information about the home
  • Title Report - To disclose whether there are any liens and encumbrances
  • Recording Fees - To record the transfer of property with the appropriate government bodies
  • Courier Fees - To cover the cost of transporting documents between the escrow service and various other entities
  • Loan Origination Fee - This is a fee imposed by the lender to cover certain processing expenses in connection with making a real estate loan
  • Discount Points - Prepaid finance charges tied to interest rate (the higher the interest rate, the lower the discount points)

Seller's Fees

Some things that may be required at closing, but not always:

  • Water and sewer certification (if your new home is not on municipal and sewer facilities, a certification may be ordered through your local health department to save you money)
  • Building code compliance letter
  • Mortgage insurance
  • Survey

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