Can I apply for a loan before I find a property to purchase?
Yes, applying for a mortgage loan before you find a home may be the best thing you could do! You can apply for a pre-qualification, either on-line, meet or speak with one of our mortgage loan officers. Once approved we’ll will issued a pre- qualification letter to assure real estate brokers and sellers that you are a qualified buyer.
When you find the perfect home, simply contact your Mortgage Loan Officer to continue with the process. At that time, you will have an opportunity to lock in one of our great rates.
What is a credit score and how will my credit score affect my application?
A credit score is one of the pieces of information that we’ll use to evaluate your application. Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about
the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that tells a lender to determine the likelihood that you will repay the loan on schedule.
The credit score is calculated bye the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way
of determining credit worthiness.
Some of the things that affect your credit score include your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that
have been made about your credit history in the recent past.
Credit scores used for mortgage loan decisions range from approximately 300 to 900. Generally, the higher your credit score, the lower the risk that your payments won’t be paid as agreed.
Using credit scores to evaluate your credit history allows us to quickly and objectively evaluate your credit history when reviewing your loan application. However, there are many other factors when making a loan decision
and we never evaluate an application without looking at the total financial picture of our members.
Will the inquiry about my credit affect my credit score?
If your FICO Scores change, they probably won't drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, multiple inquiries from auto, mortgage or student loan lenders within a short period of time do not affect most Credit Scores. Typically, these are treated as a single inquiry and will have little impact on your credit scores.
How will you verify my income?
In order to confirm your income, Suffolk Federal will request a few documents. A good way to remember the documentation you’ll need is to remember the 2-2-2 rule:
Additionally, we may contact your employer directly to verify length of employment, overtime, commission, or bonus income to be used for consideration of your loan.
Do I have to provide information about my child support, alimony or separate maintenance income?
Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying the mortgage loan.
I'm getting a gift from someone else. Is this an acceptable source of my down payment?
Gifts are an acceptable source of down payment, if the gift giver is related to you or your co-borrower. We will ask you for the name, address, and phone number of the gift giver, as well as the donor’s relationship to you.
If your loan request is for more than 80% of the purchase price, we will need to verify that you have at least 5% of the property’s value in your own assets.
Prior to closing, we will verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account.
I am selling my current home to purchase this home. What type of documentation will be required?
If you are selling your current home to purchase your new home, we’ll ask you to provide a copy of the settlement or closing statement you’ll receive at the closing to verify that your current mortgage has been paid in full and that you’ll have sufficient funds for our closing. Often the closing of your current home is scheduled for the same day as the closing of your new home. If that I’s the case, we’ll just ask you to bring your settlement statement with you to your new mortgage closing.
I have student loans that aren't in repayment yet. Should i show them as installment debts?
Any student loan that will go into repayment within the next six months should be included in the application. If you are not sure exactly what the monthly payment will be at this time, enter an estimated amount.
If other student loans are reflected on your final credit report, which will not go into repayment in the next six months, we may need to ask you for verification that repayment will not be required during this time
period.
What, exactly, is an installment debt?
An installment debt is a loan that you make payments on, such as an auto loan, a student loan, or a debt consolidation loan. Do not include payments on other living expenses, such as insurance costs or medical bill payments. We will include any installment debts that have more than 10 months remaining when determining your qualifications for this mortgage.
Apply now for a better mortgage experience with Suffolk Credit Union!