With a PFCU 1st Mortgage Loan you can purchase a home with a minimal down payment or take advantage of today’s low rates and refinance your current mortgage loan!
Saving for a down payment on your first home can take years. Now, PFCU is helping members buy a home by offering a program that may only require a minimal amount down.
Do you qualify?
- You must be a current member of PFCU
- Home to be purchased must be an eligible property type and a primary residence
- Member must have a minimum credit score of 620
- Your Down payment can be a gift from a qualified donor
- Members may be required to complete a HUD-certified Homebuyer Education course and receive a Certificate of Completion
- All loans are subject to PFCU and secondary market lending guidelines, additional restrictions may apply
Q: Should I get pre-approved before shopping for a new home?
A: Yes, definitely. A pre-approval presented with your offer lets the seller know that you are qualified to purchase their home. It ensures that the sale most likely will go through. All pre-approvals are subject to meeting some final conditions, such as an appraisal of the property and validation of information previously provided.
Q: How do I know how much house I can afford?
A: Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
Q: How much cash will I need to purchase a home?
A: The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
Q: What does my mortgage payment include?
A: For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
Q: How do I know which type of mortgage is best for me?
A: There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Partnership Financial Credit Union can help you evaluate your choices and help you make the most appropriate decision.
Q: What is the difference between a fixed-rate loan and an adjustable-rate loan?
A: With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
Q: How is an index and margin used in an ARM?
A: An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
PFCU Loan Officers
Partnership Financial Credit Union – NMLS#409351
Timothy Rapson Evanston Office
Theresa M. Guerriero Morton Grove Office
Our loan officers can prequalify you for a mortgage in as little as fifteen minutes, over the phone! Once you are prequalified, you have a better sense of what you can afford and the prequalified status tells sellers that you are a serious shopper. It can give you the advantage you need in a bidding war against another home buyer.
Documents Needed for a Mortgage Application
- Copies of your most recent pay-stubs covering a one-month period
- Copies of your W2 forms for the most recent two-year period
- If income is derived from retirement accounts, the most recent awards letter verifying the monthly retirement income
- Copies of your complete (including all schedules) IRS Tax Form 1040 for the most recent two-year period
- If you are self-employed, Corporate Returns for the most recent two-year period will be required
- Copies of two months of asset statements (all pages) for any and all accounts, including savings, checking and retirement accounts
- Copies of a government issued ID and Social Security card
- If your loan request is for a refinance transaction, a copy of your most recent mortgage statement
- If your loan request is for a home purchase, a copy of the fully-executed, signed purchase contract
- Name and phone number of your homeowners insurance agent and/or condo association (if applicable)
The above documentation can be submitted to any PFCU office or you can fax to the following number:
Attention: Mortgage Department