Applying for a Mortgage
Lenders consider many factors in evaluating your application, including:
Getting pre-approved means you receive a loan commitment from your lender before you have found a home, based on a review of your credit and finances. Having your credit pre-approved shows sellers that you’re a qualified buyer and helps you establish a clear price range.
Many home buyers believe they must be able to put down as much as 20% of a home’s purchase price in cash. That may have been true in the past, but many of the mortgage options available today require little or no down payment.
Each monthly mortgage payment goes toward the following:
- Principal, which is the total outstanding balance of the loan
- Interest, which is the cost of borrowing money
- Taxes, which are levied on the property by the local government
- Insurance, which protects the owner and the lender from losses caused by fire or natural hazards
Private Mortgage Insurance (PMI) provides your lender with a way to recoup its investment if you are unable to repay your loan. PMI is usually required when the mortgage amount is higher than 80% of the home’s value. However, it is NOT required with the CU Promise 90 loan!
Closing costs vary based on a number of factors including mortgage type and lender. In general, the following are usually included in costs required at closing:
- Prepaid items. Certain costs must be paid to your lender in advance. These include pre-paid interest and deposits to set up escrow accounts for homeowners insurance and real estate taxes.
- Lender fees. Expenses related to making the loan to include but not limited to origination and discount points.
- Third party fees. Services provided by third parties such as title work, appraisal and credit report fee.
Links to Third Party Sites
You are now leaving CUSO Home Lending / CU Promise website and linking to a website not owned or operated by the Credit Union. Links to other Web Sites/e-mail addresses are provided solely as a convenience to our members and other customers.
CUSO Home Lending / CU Promise has no control over the content of these sites/addresses; and the Credit Union shall have no responsibility or liability relating to any access to such sites or communications between you and such Third Parties.
CUSO Home Lending's / CU Promise's privacy disclosures do not apply to linked Third Party websites, and we advise you to consult the privacy disclosures on the linked Third Party website for further information.
CUSO Home Lending / CU Promise's website may also contain links to other websites owned, operated by, or affiliated with CUSO Home Lending / CU Promise ("Affiliated Sites"). Affiliated Sites are also not governed by Credit Union's privacy or other policies; and you are advised to review the privacy disclosures applicable to each Affiliated Site you visit.
Products / Services Offered by Third Parties / Affiliates: Any products or services ("products") which are provided by third parties or any affiliates are not products of CUSO Home Lending / CU Promise. If the purchase of same is facilitated by or through Credit Union financing such is merely a convenience to the borrower(s) and in no way creates any contractual or other relationship between the borrower(s) and CUSO Home Lending / CU Promise with regard to any such products. Any rights, obligations or claims with regard to such products shall be solely and exclusively by and between you and the third party providing such products as may be set forth in any applicable contracts, agreements or otherwise, and CUSO Home Lending / CU Promise shall have no obligations, responsibilities, duties, or liabilities whatsoever regarding same.