1. Preapproval

Even before you start looking at homes, the first step in the mortgage process is getting prequalified. A prequalification gives you a general idea of how much you might be able to borrow. For a more accurate assessment of your homebuying budget, you'll need to submit documentation so we can verify your income and assets. Once we receive all required documents, it takes about 2 days to issue a preapproval letter. This letter strengthens your offer when shopping for a home, giving sellers confidence in your purchasing ability.

2. Home Search

Once you're preapproved, work with your real estate agent to find a home.

3. Processing

Your processor will then prepare and submit your mortgage application for final review and approval. You may be asked to provide additional supporting information. During this time, your appraisal will be ordered for the home you're hoping to buy.

4. Closing

The last step in the mortgage process is closing. This is where you take ownership, your loan is funded, and you get the keys to your new home.

It typically takes 30 days to close on your mortgage once you’ve submitted all required paperwork and documents. However, closing times vary based on many factors, so check with your home loan advisor early in the process to better understand when you can expect to close.

If you're planning to refinance your home, closing times take about 30-45 days.

To contact us about your mortgage, call 412-281-0822.

Yes, you may be able to buy a home, even if your credit score is less than perfect. We can help you find the best option for your situation. For more information, call us at 412-281-0822.

With a fixed-rate mortgage, your interest rate stays the same for the life of your loan. With an adjustable rate, your loan begins with a fixed rate for a specified period of time and then adjusts higher or lower based on an index.

An interest rate is the cost you pay annually to borrow money, expressed as a percentage of your total loan. In contrast, APR includes the interest rate plus other costs, such as mortgage insurance, discount points and some closing costs and loan origination fees.

Hill District FCU takes many factors into account to determine your mortgage interest rate, including, but not limited to, the following:

• Your credit score

• Your debt-to-income ratio

• The type of loan you're applying for

• The loan amount

• The loan term

• The property location

• The property type

• Market conditions based on the U.S. economy

Common types of mortgage fees include origination, application, credit report, appraisal, processing and underwriting. Hill District FCU doesn’t require an application fee. Applicable fees will be listed on your Loan Estimate form, which you'll receive after applying for a mortgage.

Not always. Many of our mortgage loans are available to qualified members with no down payment or little down payment required as little as 3-5%. Down payment assistance programs available.

PMI is insurance that a buyer pays to protect the lender in case your loan ends up in foreclosure. Private mortgage insurance (PMI) is a type of mortgage insurance you might be required to buy if you take out a conventional loan with a down payment of less than 20 percent of the purchase price. PMI protects the lender—not you—if you stop making payments on your loan.

Discount points are optional fees you can pay directly to Hill District FCU at closing in exchange for a reduced interest rate. One point is equal to 1% of the total loan amount. Depending on how long you plan to be in your home, it might make sense to pay these points and obtain a lower rate.

After you receive your pre-approval letter, start collecting the following documents and information for all borrowers so you'll have them ready for the verification process.

• W-2 forms for the last 2 years

• Pay stubs for the last 2-3 months

• Personal tax returns for the last 2 years

• Social Security number

• Monthly debt and living expenses

• 6 months Deposit account and asset information held by financial institutions other than Hill District FCU

Once you've found your home, contact your Loan Officer. Your request for preapproval will then be converted to a mortgage application.

You should receive an email or phone call letting you know that you’ve been preapproved. If you haven’t received one yet, please contact us at 412-281-0822 for further assistance.

Your pre-approval letter is good for 90 days. If you are not able to find a home within that timeframe, we encourage you to reapply.

A Loan Estimate is an industry-standard form we'll give you after you apply for a mortgage. It provides you with important information about your loan, including the interest rate, monthly payment and estimated closing costs. Since these line items are estimates, certain costs may change between the original Loan Estimate and your closing date.

The mortgage process is a little different when you’re self-employed and usually involves more documentation to prove the existence and stability of your business and income.

Start collecting the following information as soon as you get your preapproval letter, so you’ll be ready to upload documents during the verification process:

• 2 most recent years of personal 1040 tax return with all pages, schedules and worksheets.

• 2 most recent years of business tax returns:

  • Partnership—Schedule K-1 (Form 1041), Partnership Income Tax Return (Form 1065)

  • Sole Proprietorship—Schedule C of personal tax return

  • C-Corp—Form 1120: Most recent 2 years with all schedules

  • S-Corp—Form 1120S: Most recent 2 years with all schedules, Schedule K-1 (Form 1041)

• Copy of business license or a written statement from a CPA confirming at least 2 years in business.

Closing costs comprise various fees, which vary by lender, location and loan type. They typically amount to 2% to 4% of the loan amount. Common fees include appraisal, which are identified on your Loan Estimate form. Because these fees are estimates, certain costs may change between the original Loan Estimate and your closing date.

Typically, closing costs on purchase loans can’t be rolled into your mortgage. However, the funding fee for certain loans may be included, as long as the total mortgage amount doesn’t exceed the loan- to-value ratio. We do offer down payment assistance programs to help you with closing costs.

If you’re refinancing a mortgage and have enough equity in your home, closing costs can be included in the loan amount. Check with your home loan advisor for more information.

To pay closing costs, you’ll need to provide the funds through a wire transfer or cashier’s check, or have the funds transferred directly from your Hill District FCU account. For closing costs under $1,000, a personal check may be accepted. Be prepared to have closing costs available up to 2 days before your closing date.

Typically, the only thing you’ll need to bring is a photo ID, but you’ll want to confirm the details with your Loan Officer before you go to closing. By this point, your closing funds should already be transferred to the Title Company.

Yes, you can pay extra toward the principal on your loan as long as your mortgage or fixed-equity loan payments are up to date. When making your payment online, select the “Additional Principal and Escrow” option and enter the amount you’d like to pay.

You can also pay extra toward the principal of your Home Equity Line of Credit.

Refinancing means replacing your existing mortgage with a new mortgage that could have better terms or features.

Yes. You can refinance your external loan with Hill District FCU whether your original loan is with us or another financial institution.

It typically takes 30 days to refinance your home from application to closing. Currently, refinance loans are averaging 30-45 days. This timeframe varies depending on how quickly we obtain all required documentation to approve your loan request.

Refinancing your home loan typically doesn't require you to pay for closing costs out of pocket because the closing costs can be included in the total loan amount.