Question:
Answer:
Question: How much down payment do I need to qualify?
Answer: You need a minimum of 20% of the assessed value of the property. Any less than that and you would be required to pay private mortgage insurance.
Question: What are the interet rates?
Answer: Because the rates on these loans change daily, you need to contact either the Stevens Point or Plover Branch for a current quote.
Question: How long does it take to process my loan?
Answer: Generally speaking it takes between two to four weeks to process a mortgage. Since there are many "entities" involved, it depends on how busy the appraisers, title companies, inspectors and loan officers, etc. are. It also depends on how long the loan officer locks your rate in for. A 15 day lock means the loan officer has 15 days to complete the paperwork and submit it to the mortgage company.
Question: Are these loans serviced by Central Wisconsin Credit Union?
Answer: No. These loans are sold to Associated Mortgage and are serviced by the same. After the loan is closed at the credit union, all future contact regarding the loan wiould be addressed to Associated.
Question: What is Private Mortgage Insurance (PMI)?
Answer: Private mortgage insurance, or PMI, is required when you have less than 20% downpayment and essentially insures the lender will recover the shortfall in downpayment if you default on the loan. PMI is added to your monthly principle and interest payment, and is paid until you reach a 20 % equity position in your home. The cost of PMI varies greatly based on the amount of your down payment and can even vary by lender.
Question: What am I looking at for closing cost items?
Answer: First, we will need an appraisal of the property to insure it's worth what you are paying for it. Also, we base the maximum amount we can borrow against the property on the appraised value (maximum Loan To Value (LTV). You will also need a title policy. Normally the seller provides the majority of the cost for a title policy, your cost can vary between $50-$200 dollars. The title policy insures you the buyer, and us, the lender, against loss due to defects in the title or liens on the property. The cost will vary based on the dollar amount of the loan. You will also need a flood certification. This document determines whether the property you are purchasing is in a flood zone or not. Flood certifications run about $35.00. There may or may not be a loan origination fee, which runs about $250.00. Also, there may be fees to waive escrowing of taxes and insurance. The loan will also have to be "closed" by a title company or attorney. This essentially amounts to the transfer of deed and can run anywhere from $150.00 to $350.00 depending on who is handling it. Also, the cost for the close can be paid by the seller, borrower or both. Finally, there will be some filing fees, generally around $50-$75.
Question: What other costs could I be looking at when buying a house?
Answer: If you think about it, buying a house is the largest expenditure you are likely to make in your lifetime. As such, spending $250 - $350 on a home inspection prior to purchase is money well spent. Would you buy a car site unseen or without a test drive? Probably not. Yes, this is extra money, but the inspector works for you, no one else! Many many times, home inspections have saved potential borrowers from major disaster. Just be sure that the inspector you hire is state licensed.
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