Pre-Approval/Purchase
It is never too early to start the pre-approval process.
If you are thinking about purchasing a home in the next 6 months, plan to meet with your lender as soon as possible. Being prepared with a Pre-Approval will eliminate delays when you start your search for a home.
Primary Residence
A primary residence is the legal residence of the owner/borrower and which is intended to be used as a primary residence by the borrower within 60 days of closing.
VA Loans
A no down payment/equity loan for eligible Veterans purchasing or refinancing a Primary Residence. NEFCU pays customary closing costs.
Jumbo Mortgages
Fixed rates for 10 or 30-year terms and Adjustable Rates for 30-year terms for a loan amount above $424,100. Minimum down payment of 5-10% depending on loan size. Servicing of loan will stay with NEFCU after closing.
FHA Loans
A low down payment/equity loan for purchasing or refinancing a Primary Residence with flexible underwriting and credit guidelines. NEFCU pays customary closing costs.
Land
Adjustable rate with 20 year amortization and 10 year balloon. Minimum 20-35% down payment depending on use of land.
Construction
Fixed rate with 6-12 month term. Permanent financing available when construction is complete. Minimum 10% down payment.
Investment or Non-Owner Occupied
Fixed and adjustable rate options with 10-30 year terms for 1-4 unit rental properties. Minimum 20-30% down payment.
Second/Seasonal Properties
Seasonal properties are single family residential properties occupied by the owner and are not the legal residence of the owner/borrower.
Down Payment and Closing Costs
20% Down Payment
In this video, learn if a 20% down payment is a mortgage fact or myth.
Acceptable sources for down payment and closing costs:
- Savings, checking, CDs
- Sale of stocks and bonds
- Tax refund
- Sale of an asset (car, boat, motorcycle)
- Borrowing from your 401K
- Gifts from a relatives*
The cost of buying a home can be overwhelming. Minimum down payment requirements can range from 0-20% depending on credit score, type of property and loan program. Typically it is best to plan for a having a minimum 3 - 5% down payment plus closing costs before getting pre-approved.
*Certain restrictions apply that your loan officer will discuss
Your NEFCU Vermont Mortgage Team
Mortgage Officer
- Reviews income, credit, savings and loan programs
- Issues pre-approval letter
- Obtains copy of Purchase & Sales Contract
- Orders appraisal
- Submits loan to underwriting
Mortgage Assistant
- Keeps REALTOR® representing borrower updated on key dates regarding appraisal, loan approval, and closing dates
Mortgage Processor
- Issues commitment letter to borrower after approval
- Orders legal work for borrower
- Works with borrower to meet conditions of loan approval
- Schedules closing
Underwriter
- Reviews loan documentation
- Approves or denies loan based on program guidelines
Real Estate Agent
- Obtains market information
- Searches for home within price range
- Negotiates Purchase and Sales Contract
Attorney
- Helps prepare Initial Closing Disclosure with lender
- Performs 40 year title search
- Closes the loan