All About Mortgages
Frequently Asked Questions
Welcome to our list of Frequently Asked Questions for Mortgages and Home Buying!
Q: What are the closing cost for loans?
A: Closing costs can vary depending on the desired loan, and your financial situation. Estimated closing costs for a 200,000 mortgage loan would be $3,044.75. View our rates and disclosures for more.
Q: Can I roll my closing costs into my new loan with BMI?
A: Yes, this is a possibility. However, each loan is different. Once we review the application we can determine you best options to ensure that your closing costs are rolled into the loan.
Q: Does BMI FCU offer FHA or VA loans?
A: While we do not offer Federal Housing Administration (FHA) or VA loans, we offer a First Time Home buyer loan with similar guidelines to underwriting, and no Private Mortgage Insurance (PMI) required.
Q: What is the minimum credit score required?
A: The minimum credit score required will vary depending on the loan product and type. Please call us or stop by a branch to discuss your particular needs.
Q: How long does it take to close on a loan?
A: It can vary, but the standard turn-around time for closing a loan is between 30 and 45 days.
Q: What documents are needed if you are self-employed?
A: When purchasing or refinancing, self-employed borrowers should be prepared to provide business and individual tax returns for 2 years, and a Profit & Loss statement YTD (year to date).
Q: How much is required to put down to avoid Private Mortgage Insurance (PMI)?
A: The required down payment to avoid PMI is 20% of the total value of the home, unless you qualify for and choose to use our First Time Home Buyer program.
Q: What are the required documents to start the application process?
A: Every financial institution is different. At BMI Federal Credit Union, you will be asked to provide paystubs for the last 30 days, your W2’s for the past two years, and any additional documents to support assets disclosed on the application. More information may be needed for approval, but this is typically enough to get started.
Q: How long does it take for me to get pre-approved?
A: Each member is important to the Credit Union, and depending on market conditions, you can expect the pre-approval process to require between one and three days.
Q: How long is the pre-approval good for?
A: 60 days
Q: How much of the down payment is required, and can it be worked into the mortgage?
A: The minimum down payment will vary depending on the loan product and type. We recommend you call or visit us so we can review your circumstances.
Q: What is the process for first time home buyers?
A: Whether you’re a seasoned home-owner or a First Time Home buyer, your experience at BMI Federal Credit Union does not change. You will always have one loan originator (a Mortgage Loan Officer) throughout the process, guiding you to your dream of home-ownership or of home refinancing.
Q: What is PMI/MIP?
A: PMI means private mortgage insurance, and is a premium paid by the borrower to insure that the financial institution does not incur a loss on higher risk loans. The market states that anything over 80% loan-to-value should have PMI attached to the loan. If you are a first time home buyer, there are options available to you with no PMI. Please give us a call or stop by a branch to review what options are right for you.
Q: What is a Cash-out Refinance?
A: A cash-out refinance is when a borrower use the equity available in their home to make home improvements, consolidate debt, or strengthen their financial position.
Q: What is an ARM Loan?
A: ARM stands for adjustable rate mortgage. This product with have a rate fixed for a certain period of time, which is explained to you during the lending process. After the allotted time, the rate can adjust each year, or every few years. It is important to carefully consider your payment program. If you’re unsure, we can help. Call or visit a branch!
Q: What is a Fixed Rate Mortgage Loan?
A: A fixed rate mortgage is when the interest rate is fixed or set for the life of the loan.
Q: Am I able to be updated throughout the loan process?
A: Yes, at BMI Federal Credit Union, we pride ourselves on our Member Service. Each member works with one originator throughout the mortgage process. You will receive information on what to expect, updates on approval, and any additional information as needed. Not all institutions do this, but we think it is important and more helpful for our members.
Q: Can I pay down my rate?
A: Every financial institution has different guidelines. While we do allow certain rate buy-downs, we recommend you give us a call, or stop by a branch to discuss these options.
Q: Why is getting a mortgage through a credit union better than going to a big bank?
A: At BMI Federal Credit Union, we offer competitive mortgage products to suit your needs. We provide exceptional Member Service, and are committed to complete communication from start to finish. You will work with one Mortgage Loan Officer for the duration of your loan process, and all loans are underwritten in-house. Our Contact Center is available on-site to answer any questions or to connect you with the Mortgage Department at any time during business hours. Lastly, BMI Federal Credit Union Mortgage Loan Officers are not commissioned-based. For further information on how credit unions are different from banks, check out our featured article: How is a Credit Union Different from a Bank?
Q: Does BMI complete loans for investment properties?
A: At this time, the Credit Union does not provide investment loans or construction loans.
Q: How can I best use the equity in my home?
A: Financial circumstances differ for each of our members, but it is our job to make sure we’re improving you financial well-being. During the application process, we will discuss your goals to ensure we’re making the best decision possible for you, or you and your family. If you have further overall financial questions or concerns, BMI Federal Credit Union offers free and private Certified Financial Coaching sessions.
Q: Does the Credit Union offer vacation home loans?
A: BMI Federal Credit Union offers mortgages on all primary, second, or vacation homes. Again, each product and member are different, so please call or visit us to understand the guidelines for these loans.
Q: How can I get pre-approved?
A: Please fill out an application, either in person, over the phone, or through our website. Once the application is submitted, you will be contracted to review the pre-qualification/approval.
Q: Do I need to fill out an application to get pre-approved?
A: Yes, in order to determine any pre-approval, we require a review of credit, current finances, and answers to questions that qualify you for loan programs.
Q: Do I have to have escrows?
A: Any loan that has 80% or greater loan-to-value has the option to escrow or not.
Q: Why do I need another appraisal?
A: Current guidelines render an appraisal good for 120 days. Additionally, appraisals can benefit borrower if improvements were made to the home or the market sees improved conditions.
Didn't see your question?
Call our mortgage department at 614.707.4000, explore our website, or visit us at any of our five branches in Dublin, Westerville, or Columbus.
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