Ready to hold the keys to your dream home? Natco Credit Union can help make it a reality. We realize that purchasing a home is one of the biggest decisions you’ll ever make.
That’s why we’re committed to providing you the best mortgage loan options to make it a reality.
At Natco, we have a team to help you fulfill your dream of home ownership. We want to be the team that’s able to say, “Welcome to your new home!”
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Call one of our mortgage experts to discuss your options.
Whether you’re purchasing a new house, refinancing or renovating your current home or investing in a vacation home, we will provide you with the help you need to secure a mortgage. We will be with you every step of the way — from the beginning to the end.
Financial challenges can interfere with anyone’s plans for home ownership. Even if your credit score isn’t ideal, you still may qualify for a home loan. Calling is the first step! And if you don’t qualify today, learn tips that can improve your chances of getting into your dream home.
At Natco, we realize everyone has different needs when it comes to selecting a home loan. That’s why our mortgage loan specialists offer conventional loans, FHA, USDA, and VA and new construction loans. We will help you choose the one that’s right for you.
We realize that investing in a home is one of the most important decisions you’ll ever make. Review these great resources to answer some of the questions you may have before getting started.
How do I know which loan program is the right fit for me?
Finding the mortgage program that’s the best fit for your personal situation comes together when our experience meets your goals and unique financing needs. Our team of origination professionals are licensed, experienced, and dedicated to finding the right mortgage program for you.
Are there mortgage loan programs available for people with bad credit?
There are loan programs for borrowers with less-than-ideal credit. Many Government mortgage programs feature flexible credit and qualification requirements, addressing some of the most common obstacles homebuyers face when purchasing a home.
What is an escrow account and why do I need one?
Generally, an escrow account refers to the funds a borrower pays to a lender along with their principal and interest payments for the payment of real estate taxes and hazard insurance. This is also referred to as impounds. The money is held in an account to ensure it is available to the lender when payments are due.
What is Private Mortgage Insurance (PMI) and why do I need it?
Private Mortgage Insurance is provided to protect the mortgage lender against losses that might be incurred if a loan defaults. Most often required on Conventional mortgage loans, the cost of Mortgage Insurance is usually paid by the borrower and is most often required if the loan amount is more than 80% of the home’s value.
Do I need to find a home before I apply for a mortgage loan?
No, in fact we recommend getting pre-qualified for a mortgage loan before you begin your home searching process. Pre-Qualification is often a great place to start because you’ll learn exactly how much you are approved to borrow, making the process of searching for the right home much more efficient.
What is the difference between a Fixed Rate mortgage and an Adjustable Rate (ARM)?
A Fixed Rate mortgage loan features monthly principal and interest payments that will remain the same throughout the life of the loan. An Adjustable-Rate Mortgage (ARM) is a loan that allows the lender to adjust the interest rate during the term of the loan. ARM terms can be complex, you may want to consult with us to determine if an Adjustable Rate loan is right for you.
How does my past credit history affect my ability to get approved?
All mortgage programs feature basic credit requirements, including credit score minimums. Your credit score, as well as the information on your credit report, are key factors in determining whether you’ll be able to get a mortgage. Errors on your credit report can affect your score, so it’s important to check your credit report and correct any errors before applying for a loan. Credit score is only one component in a mortgage lenders decision, other factors include: the amount of debt you already have, your total assets, your current income, how much you have in savings, and more. Consumer Financial Protection Bureau (CFPB)
What information should I have ready when applying?
When applying for a mortgage loan you’ll need to gather a variety of documentation. Your Mortgage Consultant will provide you with specific information on what items are required, but this may include:
What is an appraisal and why do I need one?
An Appraisal is a written estimate of the value of a property, prepared by a qualified appraiser. Mortgage lenders will always require a property appraisal before approving a home loan.
The most popular method of appraising a home is the “sales comparison” method. It involves examining recent home sales in the area (often called “comparables” or “comps”) and selecting the ones most like the property being appraised (the “subject property”). The subject property’s condition, construction quality and features are compared to the comps, and its value is adjusted up or down.
There is also the “income” approach which is used primarily when valuing an investment or rental property. The appraiser takes the rental income of either the subject property (if rented) or similar comps and calculates the price that would provide the rate of return a typical investor would require for a similar property.
How will my property taxes be paid?
If you have an escrow account, your monthly mortgage payment will consist of principal, interest, taxes, and insurance (P.I.T.I). Using an escrow account, your lender or servicer will pay the taxes and insurance on your behalf each month.
If you don’t have an escrow account, you will be responsible for paying your own property taxes and insurance.
How do I know if a property I am interested in is USDA eligible?
There are properties in rural areas that do qualify for 100% financing with a USDA Section 502 Guaranteed Loan. The website is: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do and select “Single Family Housing Guaranteed”, Accept the Property Eligibility Disclaimer and then include the full property address along with the City, State and Zip Code. It should return if the property is or is not located in an eligible area.
How do I know if my annual income qualifies for a USDA loan?
There are income requirements/limits for a USDA loan. You can visit https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state pick your state, then select your County and then answer a few questions about the people living in your household. Once you click next it will ask you some questions about your gross monthly income. Once you click finish you will come to a summary screen, and it will render a determination based on the information you entered and let you know if the income meets the income limits. For example: In most Indiana Counties the maximum income limit for a family of 4 would be $103,500 and could change annually.
Am I required to complete a Homeownership Education Course.
In some circumstances a Homeownership Education course is required for certain mortgage loan programs. Even if not required it is highly suggested that the course is completed especially for first time buyers. If you would like more information, or if you would like to complete a course, you can visit https://www.fanniemae.com/education If you complete the course with a passing score of 80% or higher, the certificate you receive can be used to fulfill the education requirement for most mortgage products. Other course features and Benefits: Offered to you free of charge, tracks your progress so you can pause and resume anytime, provides a 15-question end of course quiz, which you can take as many times as needed to pass, Takes 3-4 hours to complete all 7 modules, accessible from your desktop, tablet or mobile device, and you can return to your course anytime to use the tools and information as a resource, as often as you like.
What would my closing costs be to either purchase or refinance my primary residence?
Closing costs could vary from institution to institution and could also vary on the mortgage product you choose. As an estimate only, typically closing costs could be 2% to 5% of your loan amount.
Can any of my closing costs be paid by the seller?
Closing costs being paid by the seller are called “seller concessions” and depending on the loan program you choose the seller can typically pay some of those costs. You will never receive credit for more than the total of the closing costs. Seller concessions need to be listed on the signed/accepted offer to purchase / purchase agreement. Here is an example of seller concessions for a Conventional loan.
EXAMPLE OF SELLLER CONCESSION FOR CONVENTIONAL LOAN
OCCUPANCY TYPE – PRINCIPAL RESIDENCE OR SECOND HOME
LTV/CLTV | Maximum Concession
Greater than 90% | 3%
75.01% to 90% | 6%
75% or less | 9%
EXAMPLE OF SELLER CONCESSIONS FOR GOVERMENT LOAN
OCCUPANCY TYPE – PRINCIPAL RESIDENCE
Type | Maximum Concession
FHA | 5%
USDA | 6%
VA | 4%
All information deemed accurate but not warranted.
Renee Green – (765) 488-2112
Lynne Robertson – (765) 983-4750
Your mortgage specialist will review current interest rates and estimated mortgage payments to make sure they fit your budget.
What’s right for you? By researching your options, including the different types of loans offered, you can determine which mortgage option is best for you.
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