Mortgages FAQ

You may get started in a number of ways

• By appointment or by phone (651) 225-2729
• Paper application picked up at one of our locations
• Our secure online mortgage application

1. Contact a Mortgage Loan Officer at City & County Credit Union to discuss getting pre-approved for a mortgage or refinance options. 
2. Complete your loan application online, in a branch, or by phone. 
3. Gather and submit required documents. Including proof of income, asset statements and property information. 
4. Shop for a new home. Find a good realtor, negotiate an offer and order a home inspection. 
5. Communicate with City & County Credit Union during the process.
       - Get purchase agreement and details to City & County
       - Lock in your interest rate
       - City & County will order appraisal, title work and other requirements
       - City & County will submit your loan for conditional approval
6.  Satisfy any outstanding loan conditions. This may include; updated income, updated assets, other verification. 
7. Close on the house.
8. Enjoy making your new home, your home!

• Copies of pay stubs for each applicant
• Names and addresses of employers from the past two years
• W-2s from the past two years 
• Bank Statements from the past two months
• Other sources of income - Pension, Dividends, Child Support
• Information on debts such as car loans, student loans, and credit cards 

• Purchase & Refinances – Including second homes and investment properties
• Conventional, Federal Housing Administration (FHA) and VA mortgages
• Fixed Rates up to 30 year terms and Adjustable Rates
• 15 year Streamline refinances
• Jumbo Loans

The Interest Rate is the interest you pay each month on the unpaid balance of your mortgage. An Annual Percentage Rate (APR) is the interest rate plus any extra fees involved in getting a mortgage. This can include the origination fee, points, private mortgage insurance, underwriting and processing fees. The APR is intended to aid buyers as they shop and compare mortgages.

Closing costs can vary depending on the lender, but typically include appraisal fees, title insurance fees, attorney fees, prepaid interest and documentation fees. You will get an estimate of closing costs before you close on the loan.

An escrow account is a separate account that holds funds for the purpose of paying bills such as homeowner’s insurance and property taxes. These funds are divided into 12 payments over the course of the year and are included with your monthly principal and interest payments. Escrowing for insurance and/or taxes is a requirement on some loans.

Private Mortgage Insurance (PMI) is insurance meant to protect lenders against loss if a borrower stops paying down their mortgage loan. PMI is usually required when your down payment is less than 20% of the value of the home you are purchasing. This is typically added into the monthly mortgage payment.

Federal Housing Administration mortgages, also known as FHA mortgages are federally insured by the government. An FHA mortgage works well for first time home buyers with lower credit scores and income as they allow borrowers to put less money towards their down payment.

A conventional mortgage is not insured or guaranteed by the government and works well for people who have more money available for a down payment, and have typically higher credit scores.

A fixed rate mortgage has an interest rate that will not change. It remains the same rate the day you take all the way through the life of the home loan. This can be advantageous when if you can lock in at a low rate, and not have to worry about a fluctuating market. An Adjustable Rate Mortgage has an interest rate that can go up or down. This can be advantageous in case mortgage market rates go down over the life of the loan. You can get a lower rate without having to refinance your mortgage.