Wednesday, February 10, 2016

Getting a Home Loan from MMFCU

Buying a home for the first time can be stressful, especially if you don’t know what to do.

Here at MMFCU, we can help you! Our home loan team can assist you with any questions that you may have and walk you through the process to make it completely stress­ free ­especially if it is your first time.

Step 1
Once you’ve made the decision to buy a home, the next step is to see where your finances are and what you can afford. Knowing the up-front costs of purchasing a home as well as the budget for your monthly mortgage payments will help you calculate how much you need to borrow.

The other part of this first step is getting your down payment together. When doing so, you need to calculate your assets. You will need ALL of the following information:
  • All checking and savings accounts
  • Stock, bonds, stock options, 401K value
  • 401K loan
  • Gifts from family
Having all of this information together will help you decide what home you can afford. If your dream home happens to be out of your initial reach, talk with one of our home loan consultants and they can help you with other possible options. Don’t lose hope!

Step 2
Once you figure out what you need, the next step is to apply for a loan. The information that you will need to get together is as follows:
  • Name, current address, Social Security number
  • Name(s), and work number(s) of employer(s) for the past two years
  • Monthly income for you and your co-borrower (Most recent pay stub with year-to-date income, including bonuses, commissions and overtime income for the past two years. This information is on your tax return.)
  • If you are self-employed, you will need your last two years of tax returns for the type of business you own: sole proprietorship (Schedule C), partnership (Form 1065), or corporation (Form 1120 or 1120s). In addition, the last two years' personal tax returns (including K-1s).
  • Documentation to support credit history problems (if applicable), which can be a written explanation of late payments, bankruptcy (petition and discharge papers), defaults, judgments and/or liens.
  • As part of closing, we will have to verify all funds that you receive; so it's a good idea to get together any documents that will verify proof of receipt or deposit for funds, like gifts and trust accounts.
Step 3
Once you have applied for the loan and are pre-approved, now you can make an offer on that dream home you’ve had your heart set on! When making that first offer, include the following:
  • The price you're willing to pay
  • When you want to move in
  • What kind of inspections you'd like to have (structural, electrical, plumbing)
  • If your ability to buy the house depends on your ability to get financing (which is taken care of if you're pre-approved by us)
  • The amount of time both you and the seller have to make all these things happen (usually 30 to 60 days)
Make sure your officer is “contingent on inspection.” This could be the biggest purchase you will make in your life, so you want to make sure you’re not buying something that’s broken.

The seller has 24-48 hours to consider and either accept your offer or make a counter offer. Once a deal has been made, then you can close!

MMFCU wants to help you however we can, whether it’s giving you peace of mind about your current mortgage, achieving a goal, or simply making a dream come true, we can help. Call us today at 218-829-­0371 or visit our website to learn more about your options.

For additional resources and information, you can also check out our online home loan center, which will walk you through the application process, calculate various scenarios and educate you on your financing options.

Mid-­Minnesota Federal Credit Union is a full-­service mortgage lender for a variety of home financing options: first and second mortgages, home improvement loans, home equity loans, lines of credit, refinancing and more.