Mortgage FAQs
TYPES OF MORTGAGES AND RATES WE OFFER:
Do you make mortgages for purchases & refinances?
SLCCU originates first mortgages to Purchase, Refinance, or Cash-Out Refinance of Single Family (House, Town-House, Condo, and Single Family 2-4 Unit) Primary Residences in the St. Louis Metropolitan Area.
What types of mortgages do you offer?
We offer FHA, Conventional, and VA loans.
What type of mortgage is best for me?
We will work with you to help determine what mortgage type(s) and terms you are qualified for. We will then explain each option to assist you in making a decision. This is done after the application process and credit reports are pulled and reviewed to determine eligibility.
How much money I will need for a down payment?
FHA: 3.50% of the purchase price, plus closing costs
Conventional: 3% to 5% of the purchase price, plus closing costs
VA: Down payment depends on VA Eligibility, possibly 0% plus closing costs
Do you offer down payment assistance?
Down payment assistance may be available, as we work with several non-profits and City agencies that provide assistance options. Every St. Louis Community Credit Union first mortgage application is reviewed for the down payment assistance options after it is pre- qualified.
What are your mortgage rates?
Mortgage rates can vary from day to day. You may view our current Mortgage rates here.
Is there a prepayment penalty?
None of the loan programs we offer have prepayment penalties. You can pay off your mortgage whenever you choose without additional charges.
What is SLCCU’s relationship with Carrollton Bank?
We realize your mortgage is one of the most important financial decisions you will make. St. Louis Community Credit Union works with Carrollton Bank as a broker to originate first mortgage loans. We are combining our efforts to provide you with the best loan products and service possible. Carrollton Bank is a partner with us and has been in business since 1877.
Will my loan be sold?
In many cases, home loans will be sold and will be serviced by another party. These companies currently include Carrollton Bank and Caliber Home Loans. Where the loan will be serviced is determined closer to when the loan is finalized when all final figures are determined, including loan type, Loan to Value, and other factors.
What is SLCCU’s Mortgage Loan Originator (MLO) Number?
St. Louis Community Credit Union’s MLO number is 616755.
Carrollton Bank’s MLO number is 719258.
RATE LOCK POLICY:
Lock-in Agreement
Locking in an interest rate protects you from interest rate changes from the time your lock is confirmed to the day the lock expires. Your rate will be fixed during the lock period regardless if interest rates rise or fall.
When can I lock?
We are able to lock a rate only after the following conditions have been met:
- You have found a property and have accepted the sales contract
- You are approved for the mortgage amount after first being pre-qualified
- We have reviewed all required documentation
Cost to lock
We do not charge a fee to lock your interest rate.
Period of lock
We currently offer 30, 45, 60, and 90 day locks – which means you must close and disburse your loan during the Rate Lock period. We must lock your rate 10 days prior to close.
Please note that extensions of the rate lock-period due to delays in providing documentation for the review process may result in additional closing costs.
APPLYING FOR A HOME LOAN:
How can I apply?
We are only able to accept applications submitted through our website at this time. Click here to visit our online application.
What information do I need to apply?
Documentation for all borrowers, including:
- Social Security Number
- Contact and employment information
- Best estimates of income, assets, and liabilities
It is helpful to have pay stubs and prior year’s tax returns available to assist in answering these questions.
Can I apply for a loan before I find a property to purchase?
Yes! In fact, we strongly recommend that you get Pre-Qualified for a mortgage loan before you find a home. Once an application is completed and all necessary documentation is provided and reviewed, a Pre-Qualification Letter will then be provided.
The Pre-Qualification letter outlines the type of loan & amounts you are Pre-Qualified for.
How much does it cost to get pre-qualified?
There is no cost or obligation to get Pre-Qualified. To start the process, simply apply on our website.
PROCESSING YOUR LOAN:
What's the difference between Initially Eligible, Pre-qualified and Approved?
Initially Eligible: You have been qualified for the mortgage amount requested subject to verification of the information in your application including the home.
Pre-Qualified: We have verified the information you provided and approved you for a specific loan amount subject to determining the value of the home you wish to purchase or refinance.
Approved: We have verified the information you provided including the value of the home securing the loan and you are authorized to proceed with a loan closing.
When will I hear back on an initial decision?
All applicants will receive an initial decision within 1 to 2 business days from the time your application is submitted online. If you are initially eligible based upon the data you entered on your application, such as income, assets, and credit report review, SLCCU will then request verification of said income and assets to support information provided.
What is the percentage of my home’s value that I can borrow?
The maximum percentage of your home’s value that you can borrow will be determined by the purpose of your loan request. If you are purchasing a new home, we can lend up to 97% loan to value* requiring a down payment as low as 3%* of the purchase price.
If you are refinancing your home we have programs that would allow up to 97.75% loan to value*.
* Subject to loan program and qualifications
How will my credit score affect my application?
We look at the total picture of the applicant before making a loan decision. Credit Scores are one piece of information we use to evaluate your application.
How will a past bankruptcy or foreclosure affect my ability to obtain a new mortgage?
A previous bankruptcy or foreclosure may negatively impact your ability to get a new mortgage.
We generally require that a minimum of 2 years have passed since the bankruptcy and/or the property has been removed from your name, and generally require 3 years’ passage for foreclosure and short sales.
In addition, it is important to re-establish acceptable credit history with new loans and credit cards after the event.
Does SLCCU refinance loans that have been modified?
At this time, SLCCU does not refinance loans that have been modified.
What information will you need to complete a Pre-Qualification and issue a Pre-Qualification Letter?
We will require:
- Paystubs from the previous 30 days
- Tax returns from the last two years
- W2’s and bank statements from the last 60 days.
If you are refinancing, we’ll also need your most recent mortgage statement(s) and homeowner’s insurance bill.
There are usually additional documents needed during the loan process, so please expect to provide additional items as the review moves forward.
LOAN CLOSING:
How much are closing costs?
A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes which vary between Missouri and Illinois.
The cost is based on the loan amount.