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Loan Center

Buying a Home? Head off problems with some inside information.

If you're in the market for a new home, you'll have fewer problems and delays qualifying for your loan if you follow this inside advice from TCU Mortgage.

Clean Up Your Credit
Before you apply, order a copy your credit report and FICO score. There are several online sources available where you can learn exactly what information will be used to determine how much money you qualify for and most importantly, what information will negatively affect your application and interest rate.

For example, if you recently had several late payments you should start to make payments on time 6 months prior to applying for your mortgage. This strategy may improve your credit score and the interest you'll pay on your loan. Plus, you'll have enough time to contact the Credit Bureaus in writing to explain or correct any outright wrong information. Looking at your credit report on a regular basis is also a good way to spot any instances of identity theft. It's all about you, so be aware of what's being recorded.

Collect Your Records
Begin to get the required documentation in order now. Create a file – a shoebox will do – and start saving important papers that your Loan Officer will need at time of application, throughout the loan process, and prior to closing.

Here are some helpful DO's and DON'T's to help prepare you and speed up the approval process

  • DO keep originals of all pay-stubs, bank statements and other important financial documentation.Your lender is required to update any documents that are over 30 days old prior to the closing of your mortgage loan.  (This is required even if your loan is approved.)
  • DO have a copy of your employment history for the past two years, including contact information.
  • DO have your residence history for the past two years available, such as your rental agreements or your mortgage account number.
  • DO have a copy of your social security card.
  • DO have a copy of your divorce decree, if applicable.
  • DO have copies of your Federal Income Taxes for the past two years.
  • DO provide all documentation for the sale of your current home (e.g.: sales contract, closing statement, employer relocation/buyout program).
  • DO notify your Loan Officer if you plan to receive gift funds for closing costs.
  • DO notify your Loan Officer of any employment changes (e.g.: change of employer, recent raise/promotion, transfer, change of pay status, such as salary to commission scale, etc.).
  • DO NOT change jobs/employer without inquiring about the impact this change would have on the approval of your mortgage loan.
  • DO NOT make major purchases during or prior to closing (e.g.: new car, furniture, appliances, electronics), as this may impact your qualification ratios. Please confer with your Loan Officer to have him/her calculate what your ratios would be with any additional debts.
  • DO NOT obtain and/or deposit unusually large sums of money without notifying your Loan Officer; FNMA/HUD guidelines require documentation as to the source of these funds (e.g.: copy of bonus check, copy of tax refund, copy of insurance settlement, gift letter with copy of check and deposit slips, etc.)
  • DO NOT close/open or transfer any asset accounts without inquiring about the proper documentation required for your loan file.  (i.e.: If you transfer all the funds in your stock account to your savings account, documentation is required.)
  • DO NOT open or increase any liabilities, including credit cards, signature loans, etc., during the loan process.  Please check with your Loan Officer for any documentation that will be required and what impact this would have on your qualification ratios.

For most people, this is just a matter of organizing documents they already have on hand. Taking a little time to get your papers in order for the Loan Officer will make the process easier and the approval process swift. A little time spent now means a lot of time and even money saved later, so follow these tips to take the headache out of home ownership.

Visit tcumortgage.com to check our rates, apply online or use the online calculators to help you decide which mortgage is best for you.
 

NMLS# 686706

Mortgage Preparation Guide

Be prepared. Whether you are a first-time homebuyer or someone getting ready to move to a larger or smaller home based on changing needs, it's a good idea to be prepared for the loan process. Here are some guidelines on what information you will need for your application. 
 
Residence History
Your previous addresses for the past 2 years and how long you lived in each place; If you currently rent, include your landlord's name and address (for the past 12 months). 
 
Employment History and Income History
The names and addresses for all your employers for the past 2 years, the dates you worked at each company and a letter explaining any gaps in your employment in the past 2 years; You will also need your original paystubs for the last 30 days, most recent 2 years of W-2's and most recent two years of 1040's. If you are self-employed, a year-to-date profit and loss statement and current balance sheet. If you were a student in the past 2 years, bring a transcript or diploma. If you are retired or disabled, bring your award letter and a copy of your most recent check for retirement Social Security or disability. 
 
Outstanding Loans and Credit Cards
All coupon books or most recent statement for every loan or credit card account you own.
 
Savings, Checking or Investment Accounts
The name and address for each financial institution and the account number, the current balance or value, 3 months of bank statements on all accounts and 3 months of statements for any IRAs, Keoghs, 401Ks or profit sharing accounts you own.
 
All Personal Property Owned
The net cash value of your life insurance policy, personal property, furniture and the make, year and value of your vehicles.
 
All Real Estate Currently Owned
The property address, estimated market value, the outstanding loan balance and your monthly payment. If applicable, the amount of any rental income.
For more information about our home loan program, contact a TCU Mortgage Representative.
 

Visit tcumortgage.com to check our rates, apply online or use the online calculators to help you decide which mortgage is best for you.
NMLS# 686706

 
 

What is an "Escrow Account"?

A portion of your monthly mortgage payment is deposited into an Escrow Account to assure that property taxes, fire hazard insurance premiums, and mortgage insurance premiums (if applicable) are paid on time.

Mortgage escrow accounts date back to 1934 and are now governed by the Real Estate Settlement Procedures Act of 1974 (RESPA) that is administered by the U.S. Government Department of Housing and Urban Development (HUD). Your mortgage lender is responsible for managing your Escrow Account ensuring funds are collected, and notifying you if the amount being collected needs to be adjusted. This is proper mortgage servicing. If your mortgage loan servicing is sold to another lender, the new lender assumes responsibility for managing your escrow account. Sometimes, the servicing of a mortgage loan can be sold multiple times. What sets TCU Mortgage apart from most lenders is: we retain servicing on 98% of the loans we make. That means, that loan servicing won't be sold time after time, and you'll always know who to call with questions, or when it's time to refinance.

Escrows protect both the borrower and the lender by guaranteeing there's adequate money for payment of property taxes and insurance premiums, thus avoiding delinquent tax penalties or lapsed insurance coverage. Escrow Accounts are often required, but not always. Your Loan Officer can advise you when, and if an Escrow Account is mandatory on different types of loans. If it is optional with your loan program, carefully weigh how important this payment protection is for you. For most homeowners, collection of funds for insurance and property taxes in smaller increments over the course of a year - and the peace of mind from knowing these are covered - is easier than paying a large tax or insurance bill at one time each year.

For more information about our home loan program, contact a TCU Mortgage Representative.

Visit www.tcumortgage.com to check out our rates, apply online or use the online calculators to help you decide which mortgage is best for you.
NMLS# 686706

 
 

Loan Preparation Guide
Be Prepared!
Whether you are a first-time homebuyer who has been waiting for the perfect chance to make your move or someone who is getting ready to move to a larger or smaller home based on changing needs, it’s a good idea to be prepared for the loan process beforehand.

Residence History
Your previous addresses for the past two years and how long you lived in each place.  If you currently rent, your landlord’s name and address (for the past 12 months).
 
Employment History and Income History
The names and addresses for all your employers for the past two years, the dates you worked at each place of employment and a letter explaining any gaps in your employment in the past two years. You will also need your original paystubs for the last 30 days, most recent two years of W-2’s and most recent two years of 1040’s.  If self-employed, a year-to-date profit and loss statement and a current balance sheet.  If you were a student in the past two years, bring your transcript or diploma.  If retired or disabled, bring an award letter and a copy of your most recent check for retirement, Social Security or disability income.
 
Outstanding Loans and Credit Cards
All coupon books and/or your most recent statement for every account you currently have open.
 
Savings, Checking or Investment Accounts
The name and address for each financial institution and the account number, the current balance or value, 3 months of bank statements on all accounts and 3 months of statements for any IRAs, Keoghs, 401Ks or profit sharing you have.
 
All Personal Property Owned
The net cash value of your life insurance, the make, year and value of automobiles you own and estimated value of your furniture or other personal property.
 
All Real Estate Currently Owned
The property address, estimated market value, outstanding loan balance and your monthly payment. If applicable, amount of any rental income.

Visit www.tcumortgage.com for program details. Look for the CU Realty Link and sign up today!
For more information, please contact a TCU Mortgage Loan Officer.

NMLS# 686706

©2012 Teachers Credit Union. CU Realty is under contract with Teachers Credit Union to make realty services available to members. CU Realty is a licensed real estate agency, in Indiana and Michigan.

 

 

CU Realty Saves You Time!
Our online tools are designed so you can search for a new home, get tips to prepare your home for sale or even find a real estate agent – on your time. When you sign up, you will have access to the following online resources:

  • Select an agent from top local and national Brokers
  • Access the CU Realty MLS database
  • Research school and neighborhood demographics
  • Use affordability and payment calculators
  • Review CU’s mortgage information

Visit www.tcumortgage.com for program details. Look for the CU Realty Link and sign up today!
For more information, please contact a TCU Mortgage Loan Officer.

NMLS# 686706

 

©2012 Teachers Credit Union. CU Realty is under contract with Teachers Credit Union to make realty services available to members. CU Realty is a licensed real estate agency, in Indiana and Michigan.


 

CU Realty Saved TCU Members Over $35K in Realtor Fees in 2011!

 

By signing up for CU Realty Services and selecting a Realtor® from our Exclusive Agent Network, you save MONEY. Our knowledgeable agents are from top local and national brokers and will save you hundreds, if not thousands, of dollars when you buy or sell a home.
See the chart below for estimated savings.

Home Sale Price
Rebate to Member*
$80,000
$480
$100,000
$600
$150,000
$900
$200,000
$1,200
 

Visit www.tcumortgage.com for program details. Look for the CU Realty Link and sign up today!
For more information, please contact a Mortgage Loan Officer at TCU Mortgage.

NMLS# 686706

©2012 Teachers Credit Union. CU Realty is under contract with Teachers Credit Union to make realty services available to members. CU Realty is a licensed real estate agency, in Indiana and Michigan.

 
 
 
 
 
 

Helpful Tools: Calculators at TCUnet.com

Do you need answers to questions like these:
  • What would my monthly payments be?
  • How much can I afford?

You can find them using TCU’s Loan, Auto and Mortgage Calculators at tcunet.com

TCU offers competitive rates on all our loans and we’re happy to help you determine your options and what is best for you, your family and your lifestyle. Contact a TCU Representative to learn about your options.

NMLS# 686706

 
 

©2012 Teachers Credit Union

 
 
 


 

Refinancing Surge Offers Great Opportunity
If you are a homeowner thinking about refinancing to cash in on record-low interest rates, you are in good company. Before you take the plunge, understand all your options and run the numbers.

 

  • If you are only focused on making smaller monthly payments, you might be missing out. Many borrowers are switching to shorter terms, such as 15-year loans. Normally such a change would yield higher payments but, because of record low interest rates, the monthly payment may change only slightly. Compare monthly payments and total interest costs for 30-, 20- and 15-year fixed options.
  • Do not assume rates are going to keep going down and do not focus only on interest rate. A shorter term, even with a slightly higher monthly payment, could save you tens of thousands of dollars in interest over the life of the loan.
  • Remember refinancing is not always in your best interest. We can develop a break-even calculation that shows how long you would need to stay in your house to recoup closing costs and points.
  • The current rate environment is an unprecedented chance to secure a low-rate mortgage that can build equity and free up cash.

Talk to a TCU Mortgage Representative today to learn about the benefits and your alternatives.

Visit www.tcumortgage.com to learn more about TCU Mortgage, check our rates, apply online or use our online calculators to help you decide which mortgage is best for you.

NMLS# 686706


 

 

 
The TCU Visa® Platinum Credit Card and the TCU Visa® Platinum Rewards Credit Card!
Both cards provide you these great features:
  • No balance transfer fees
  • No foreign country transaction fees
  • No annual fee
  • Easy cash advances at ATMs
  • Securely select your PINs
  • Verified by VISA® security for online transactions
Talk to a TCU Representative and find out which card is best for you, or learn more at mytcucard.com.
 
 

 

 
Make Sure Your Loan is Approved
Nobody likes getting turned down for a loan. Although TCU makes every effort to approve all loan requests, it’s sometimes necessary to deny an application — to protect the applicant’s financial health, as well as the credit union’s.
When the credit union denies a loan, it’s because the applicant has either (1) a poor credit history or (2) a high debt-to-income ratio. Your debt-to-income ratio is the percentage of your total debt compared to income. For example, if each month you pay $400 toward debt with a $1,000 gross (before tax) monthly income, your debt-to-income ratio is 40%.
Although there’s no "magic" debt ratio, a rough guideline is: The total debt shouldn’t exceed approximately 40% of the total income. The credit union also weighs other factors, and the requirements vary for different types of loans.
If your loan request gets rejected, here are a few things you can do to improve your chances for approval on your next application:
  • Devise a plan to pay off old loans, including credit card balances, thus reducing your debt-to-income ratio.
  • You may qualify to consolidate your loans and credit card balances into one loan at TCU; then stop overusing credit cards.
  • Get a handle on your budget by comparing what you spend with what you earn. A budget can help you trim expenses and funnel money toward paying off old debts.
  • Fix your broken credit history. TCU will work with any member who is sincere about re-establishing good credit.
  • Bolster your income with a second job—temporarily—to help reduce your debt.

NMLS# 686706

Talk to a TCU Member Service Representative today!

 
 
 
 

 

BUYING A HOME?  HEAD OFF PROBLEMS WITH SOME INSIDE INFORMATION
If you're in the market for a new home, you'll have fewer problems and delays qualifying for your loan if you follow this inside advice.
 
Clean up your credit
Before you apply, order a copy your credit report and FICO score. There are several online sources available. For just a few dollars, you'll learn exactly what information will be used to determine how much money you qualify for and, most important, what negative information appears that will affect your application and interest rate. 

For example, if you have made several late payments, start 6 months prior to applying for your mortgage and make payments on time, every time.  This may improve your credit score and decrease the amount of interest you'll pay on your loan. Plus, you'll have enough time to contact the Credit Bureaus, in writing, to explain or correct any outright wrong information.  Looking at your credit report on a regular basis is also a good way to spot any instances of identity theft. It's all about you, so be aware of what's being recorded.

Collect your records
Start now to get the required documentation in order.  Create a file and start saving important papers that your Loan Officer will need at the time of your application, throughout the loan process, and prior to closing.
Here are some helpful DO's and DO NOT's to prepare for the application and speed the approval:
 
  • DO keep originals of all pay-stubs, bank statements and other important financial documentation.  Your lender is required to update any documents that are over thirty days old prior to the closing of your mortgage loan.  (This is required even if your loan is approved.)
  • DO have a copy of your employment history for the past two years, including contact information.
  • DO have your residence history for the past two years available, such as your rental agreements or your mortgage account number.
  • DO have a copy of your Social Security Card.
  • DO have a copy of your Divorce Decree, if applicable.
  • DO have copies of your Federal Income Taxes for the past two years.
  • DO provide all documentation for the sale of your current home.  (e.g.: sales contract, closing statement, employer relocation/buyout program).
  • DO notify your Loan Officer, if you plan to receive gift funds for closing costs.
  • DO notify your Loan Officer of any employment changes.  (e.g.: change of employer, recent raise/promotion, transfer, change of pay status, such as salary to commission scale, etc.)
  • DO NOT change jobs/employer without inquiring about the impact that change would have on the approval of your mortgage loan.
  • DO NOT make major purchases during or prior to closing (e.g.: new car, furniture, appliances, electronics) as this may impact your qualification ratios.  Please confer with your Loan Officer to have him/her calculate what your ratios would be with any additional debts.
  • DO NOT obtain and/or deposit unusually large sums of money without notifying your Loan Officer.  FNMA/HUD guidelines require documentation as to the source of these funds (e.g.: copy of bonus check, copy of tax refund, copy of insurance settlement, gift letter with copy of check and deposit slips, etc.)
  • DO NOT close/open or transfer any asset accounts without inquiring about the proper documentation required for your loan file.  (i.e.: if you transfer all the funds in your stock account to your savings account, documentation is required.)
  • DO NOT open or increase any liabilities, including credit cards, signature loans, etc., during the loan process. 
Please check with your Loan Officer for any documentation that will be required and what impact this would have on your qualification ratios.
For most people, this is just a matter of organizing documents they already have on hand and using common sense. Taking a little time to get your papers in order for the Loan Officer will make the application easy and the approval process swift. A little time spent now means a lot of time (and even money) saved later, so follow these tips to take the headache out of home ownership. 
 
 

 

 
 

 

 

Any links to external websites are links to alternative sites not operated by TCU. TCU is not responsible for the content of the alternate site. The privacy and security policies of the alternate site may differ from those practiced by TCU. TCU does not represent you or the third party if you enter into a transaction with the third party.

Equal Housing Lender NCUA