Buy a Home

When you’re ready, our Mortgage Loan Officers are here to help you with your application. During the application process you will be asked to provide supporting documentation. Here’s some information you will need to gather:

• Paystubs for the most recent 30 days
• W-2 Forms for prior two years
  • If self-employed: last two years personal and business tax returns including all schedules
• Documentation of the source of your down payment. This can be an investment or savings statement showing at least two months’ history of ownership.  If some of the funds are a gift, you may need to get signed statements from the giver stating that the funds are a gift.
• Documentation of any other source of income

Pre-Qualifications and Pre-Approvals — while either of these processes can be done via e-mail we encourage you to reach out to a Mortgage Loan Officer. We’re here to help!

Pre-Qualification

Pre-Qualification lets you know if you have what is needed to prepare to start house shopping!

A Pre-Qualification is the process in which our Mortgage Loan Officer reviews the income, debt, assets, credit history, and monies available for down payment and closing costs provided you as a potential borrower.

From this information, our Mortgage Loan Officer will be able help determine a loan amount you could be approved for, as well as what types of loan products may be the best fit for you and your goals. You may request a Pre-Qualification letter from your Mortgage Loan Officer, which provides you with an understanding of your borrowing capabilities.

Generally this can be done over the phone with the buyer giving basic information such as monthly income, monthly debts (that show on credit bureau reports with minimum payments for credit cards). You may be asked if you know your approximate current credit score. Our Mortgage Loan Officer will also ask how much money you or a co-borrower have saved for a down payment and closing costs. This information helps the Mortgage Loan Officer determine your borrowing eligibility. If it is determined (verbally) that you can be Pre-Qualified, you may be asked to submit backup documentation. In some cases, you may be advised to save some money, make improvements to your credit score, or pay off some debts. Our Mortgage Loan Officers will give you a timeframe to contact them for follow up.

Pre-Approval

When you are looking to buy a home, it can be to your advantage to get Pre-Approved for a mortgage. Why? A Pre-Approval comes with a letter that most realtors and sellers like to see to determine if you really have the financial means to place an offer. Good for negotiating!

The Pre-Approval process takes the Pre-Qualification process a few steps further. With a Pre-Approval, you will complete a full mortgage loan application (required). Your Mortgage Loan Officer will review the following information: income, debt, assets, available and confirmed monies for down payment and closing costs. The Mortgage Loan Officer will also run a credit report. You may request a Pre-Approval from your Mortgage Loan Officer. One of the big advantages of going through this process is that you are going to know your budget. A Mortgage Pre-Approval is going to tell you exactly how much money you can borrow so you can shop with confidence and some assurance to know what price range you can afford! A Pre-Approval may also increase your negotiating power with real estate agents and sellers by demonstrating up front that you have the capacity to make the purchase.

It is worth mentioning that a Pre-Qualification or Pre-Approval it not a final loan approval. Pre-Qualifications and Pre-Approvals are based on information you provide your Mortgage Loan Officer. Your application will still be submitted for full underwriting.

If you're planning to own your home for a while and don't want to worry about fluctuating rates, then a Fixed-Rate Mortgage might be the right plan for you. With a range of repayment terms, it's easy to determine a monthly payment that will fit your budget.

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Our Adjustable Rate Mortgages let you start out with a low initial interest rate. The low initial interest rate will be fixed for the first one to seven years depending on the specific mortgage option you select. Once the fixed period expires the rate is adjusted periodically based on changes in market rates. This means your monthly payment amount can also change. You are protected from extreme rate increases by caps, which are set for each adjustment period and over the term of the mortgage. Your Mortgage Loan Officer will provide you with two important resources to help you understand this mortgage program; The Consumer Handbook on Adjustable-Rate Mortgage and our Adjustable Rate Mortgage Disclosure.

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We know buying a home can be an overwhelming. There are many loan programs and some are provided to suit people in certain circumstances or groups. That's why we offer a variety of home-financing programs to make things easier. Our FHA and VA Loans can help open the door to home ownership with great rates, comfortable terms, and smaller down payments.

FHA loans are available for borrowers with less than 5% down payment and also for borrowers that may have a less than ideal credit score.

VA loans are made available to service members and veterans and generally offer lower closing costs with little or sometimes no down payment.

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With our first time home buyer loans, we work with you to help you to make sure you get the loan that works best for you because we know just how important it is to make smart decisions for one of the biggest and most exciting financial steps in your life. A mortgage is a big deal, but we’ll help simplify the process.

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Our Premier Purchase Loan Program^™ has options for up to 100% financing, no down payment, no required PMI, and flexible mortgage terms.

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At People’s Credit Union, we understand that financial setbacks happen. Whatever past bumps in the road, we’re committed to making your dream of homeownership a reality. Even if you have impaired credit, a delinquency, a short sale, or foreclosure, our Mortgage Loan Officers are ready to help you with a plan to get you on the right step for your future.

With our Right Step Mortgage Loan, you may be eligible for:

• Down payment as low as 3%
• Low closing costs
• A fixed low interest rate
• Consideration of approval if you are two years from a prior foreclosure or short sale
• Assistance available for purchasing an owner-occupied single-family home or condominium

Financing up to 97% of appraised value may be available. Private Mortgage Insurance (PMI) is required with less than 20% down payment. PMI could increase your monthly payment and APR. Annual Percentage Rate (APR) is subject to change without notice. Escrow is required for Loan to Value (LTV) over 80%. Representative example of loan terms; 30 year loan of 4.09% APR would have 360 monthly payments of $477.42 per $100,000. Other rates available based on creditworthiness. Certain restrictions apply. Additional documents may be required. All mortgages subject to credit approval.

All of our mortgage loans are subject to credit approval, but the mortgage loan process can look something like this:

• A People’s Credit Union Mortgage Loan Officer will help you with a Free Consultation, a Pre-Approval, a Pre-Qualification, or
  • If you are ready to apply, you can apply online, over the phone, or in person
  • We’ll provide you with a Loan Estimate showing you important facts about the mortgage loan
• After reviewing the Loan Estimate we’ll ask you to confirm your Intent to Proceed with the mortgage loan
• We'll ask you to provide supporting documentation such as income and asset verification
• An appraisal will be ordered
• Next we'll submit all of the required documents to our underwriting team, and once your loan is approved, we'll ask you to obtain homeowner's insurance
• Required documents are sent to the our title company for signing and then we schedule your closing
• Lastly, you become a very happy homeowner

Choosing where you want to live is one of the biggest decisions in your life, so make sure you take the time to think about what’s important to you.

• First, begin searching in areas where properties are listed in your price range. Most people begin their searches using online tools and various real estate and realtor websites that include MLS listings. Many people choose to work with a reputable realtor or real estate agent or search the real estate section of the newspaper
• While conducting your search, think about things such as demographics and community information, location proximity to work, schools, shopping, doctors, recreation and public transportation
• Conduct an online search to find out the tax rates for the areas you are interested in living
• Check out crimes rates in your areas of interest
• Make sure you know any special zoning or natural hazards you should be aware of in the neighborhood/towns you are considering
• Ask questions. Friends, family members, colleagues and acquaintances can give you valuable insight

• Make a list of all the things you WANT and DON’T WANT in a home. Consider both the outside and inside of your home
• List the pro and cons of the locations you select to help narrow your search
• Make a list of all the things you want in a home. Be as specific as possible. It will save you time in your search for a new home

Make sure to follow the advice of your attorney or your reputable real estate agent when you are ready to make an offer. Your offer is usually in writing. When you submit it to the sellers, include: what price you are offering, what types of inspections you would like conducted, demonstration of the ability to buy the home, and a timeframe in which you (the buyer) and the seller have to comply with the offer. At this point, the seller is usually given a specific amount of time (one to two days) to consider your offer or make a counter offer. If the seller counter offers, they are interested in selling you the property, but may counter with a different price or a change in the requests of the original offer.

Once we have sent your loan through our full underwriting process, we can give you a final loan approval and schedule a closing.

Upon final loan approval, we will send your loan to our settlement agent to schedule your loan closing, and we prepare all of the loan closing documents. Once you have closed on your loan and have signed all of the necessary documents, we will follow a process to disburse the loan and record all of the loan documents.