What’s included in my monthly mortgage payment?
Your monthly mortgage payment is typically broken down into principal, interest, and property taxes. If you put down less than 20% as a deposit, it will include private mortgage insurance.
What type of mortgages do you offer?
At Focus Federal Credit Union, we offer conventional mortgages with terms of 10- to 30 years, land loans, home equity loans, and home equity lines of credit.
What type of documents do I have to provide for a mortgage?
Your mortgage officer typically requests two recent pay stubs, W-2 forms for wage earners, or the last two years’ tax returns for self-employed borrowers. We also will need your most recent mortgage statement if you are selling your current home.
What does my credit score need to be to qualify for a mortgage?
Your credit score significantly affects your ability to get a mortgage loan in OKC. A high credit score shows you make your payments on time and don’t have a history of borrowing too much money. A higher score can give you more options and lower interest rates.
The minimum for most mortgages is a 640, but for land loans and investment properties, it’s a 680. If your score is below 640, we have options to help improve your credit score.
How long do pre-approvals take?
At Focus Federal Credit Union, we can do pre-approvals in less than 24 hours after receiving all the required documentation.
Do I need a down payment?
Conventional loans require a minimum 5% down payment. If you can put 20% or more down, you won’t pay private mortgage insurance, lowering your monthly payment.
Do you offer down payment assistance programs?
We work with programs offering down payment assistance for first-time buyers.
When is the rate locked in my mortgage?
Your rate is locked once you’re pre-approved and you sign your initial disclosures.
How long can my rate be locked?
Rates are locked for up to 60 days from your initial disclosure date.
How does an escrow account work?
Focus Federal Credit Union will calculate your annual tax and insurance payments. This amount is divided by 12 and added to your monthly mortgage payment. The funds are used to pay your homeowners insurance, property taxes, PMI, flood insurance, and HOA dues. This amount is deposited into an escrow account which a third party manages. If your loan is guaranteed by the Federal Housing Administration or Veterans Affairs, you must have an escrow account.
What is PMI?
When you apply for a mortgage, you’ll need a down payment of 20% of the home’s purchase price. Many mortgages offer buyers the opportunity to put down a lower amount, but you’ll have to pay private mortgage insurance (PMI). PMI is federally required until your loan to value drops to 80% or below.
How long is the mortgage process?
Typically, a mortgage takes 30 to 40 days from application to closing day. The home inspection and whether you’re pre-approved factor into the timeframe.
Does Focus Federal Credit Union sell its mortgages on the market after closing?
No, FFCUkeeps and services all our mortgages.
Does Focus Federal Credit Union have an early payment penalty?
No, you can make extra payments and pay off your loan early without penalty.
What are closing costs?
Closing costs are fees paid for services performed in connection with your loan. Fees include an appraisal, title, and recording fees. These costs can add up to 5% of the home’s purchase price and are due at closing. If you’re working with a realtor, they can help you negotiate these fees with the seller. Certain closing costs can be paid using down payment assistance.
What type of mortgage is best?
Your income, assets, and down payment will help determine the best mortgage type for your financial situation. Focus Federal Credit Union will explain your options and help you determine which loan is best for you.
What’s the difference between being prequalified vs. preapproved?
Prequalification estimates how much you can borrow based on your income, assets, and down payment. Prequalification is less accurate because it doesn’t require asset verification.
Preapprovals take more time and documentation but are more accurate and provide your interest rate and mortgage limit. You need to submit various documents for pre-approval to give the lender a picture of your financial situation.
How do I lock an interest rate?
Interest rates can change from day to day. Locking down your interest rate is a critical part of the mortgage process. Locking your rate guarantees it for 30 to 60 days.
When should I consider refinancing?
Consider refinancing if it saves you money in the short or long term. Consider refinancing to:
- Get a Lower Interest Rate. If mortgage interest rates decrease after you get the loan, you can refinance to a lower rate. This decision can result in smaller monthly payments.
- Shorten Your Loan Term. Refinancing to a shorter term, 15 or 20 years, might increase your monthly payment even with a lower interest rate, but it decreases the interest over the life of the loan and helps you pay off your loan faster.
- Eliminate Private Mortgage Insurance. Refinancing can allow you to stop paying private mortgage insurance and is the only way to get rid of FHA mortgage insurance.
- Replace an Adjustable-Rate Mortgage. Rather than enduring the uncertainty of annual interest-rate adjustments with an ARM, you might refinance a fixed-rate loan so you don’t have to worry that the rate will increase.
How long does it take to close on a house?
It takes 40 days on average to close on your new home. Your loan type, financial situation, and contract length can extend or shorten the time.
What is the difference between a 15- and 30-year mortgage?
Aside from the number of years you’ll make payments, you’ll likely have a higher monthly payment with a 15-year mortgage over a 30-year mortgage. But the shorter term could enable you to repay your loan and own your home faster, saving you over time. A 30-year mortgage lowers your monthly payment because you have a longer loan repayment time. It can provide you with more buying opportunities and make financial sense if you plan to live in your home for a long time.
Do I need to get pre-approved for a mortgage?
Getting pre-approved is a smart first step before looking for a home. It gives you an understanding of your price range and what to expect. It also shows sellers you’re serious about purchasing a home, especially in a competitive real estate market. Some real estate agents won’t work with you unless you have pre-approval.
