F I N D I N G1030 CRAFT ROADITHACA, NY 14850VISIT any CFCU branchCALL 800-428-8340CLICK mycfcu.com/mortgage&F I N A N C I N GY O U RHome Sweet Home
GLOSSARYOF TERMSAdjustable-Rate Mortgage (ARM): A mortgage that permits the lender to adjust its interest rate periodically on thebasis of movement of a specified index, such as a T-Bill.Closing Costs: Money paid by the borrower to effect the closing of a mortgage loan. This generally includes but isnot limited to the cost of the property appraisal, credit report, mortgage tax and recording fees, and title insurance.Condominium: A real estate project in which each unit owner has title to a unit in a building and an undividedinterest in the common areas of the project. The mortgage is placed on the individual units in the project.Cooperative Project: A residential building wherein a corporation or trust holds title to the property and sells sharesof stock representing the value of a single apartment unit to individuals who, in turn, receive a proprietary lease asevidence of title.Debt-to-Income Ratio: A ratio that is developed for use in determining whether a borrower can qualify for amortgage. It is derived by dividing the borrower’s total monthly obligations, including housing expenses, by his or hergross monthly income.Escrow Account: An account that is established to hold funds allocated for the payment of real property taxes,hazard and flood insurance premiums.Fannie Mae: A congressionally chartered corporation that purchases mortgages in the secondary mortgage market.Fixed-Rate Mortgage: A mortgage that provides for only one interest rate for the entire term of the mortgage.Freddie Mac: A congressionally chartered corporation that purchases mortgages in the secondary mortgage market.Hazard Insurance: Insurance coverage that compensates for physical damage, by fire, wind or other naturaldisasters, to the property.Manufactured Home: A residential unit that is constructed in a factory in sections, with the sections thentransported to the site and joined together on a pre-built foundation. This home has a structural frame, and theunderneath part of the home has running gear (wheels, axels, brakes).Mortgage: The security instrument that is evidence of the debt, tied to the subject property.Note: Proof of indebtedness for a mortgage loan.Points: Interest that is pre-paid to the financial institution in order to obtain a lower interest rate.Underwriting: Risk assessment review of the loan package.
PROTECTYOURDREAMYour home is more than just four walls and a roof. It’s the placewhere families are raised and memories are made. With such animportant investment, you deserve superior protection you cantrust – and that’s where CFCU Insurance Services comes in.Our three-step process will help you secure affordable protectionwhile saving you time and stress. Here’s how it works:1. We Shop.Our insurance professionals work with you to understandyour needs and then begin their search.2. We Compare.We review a variety of national carriers to find theabsolute best quotes for you.3. You Save.You choose the quote you like best, and we do the rest!So turn to CFCU Insurance Services for expert guidance in protecting your homesweet home. Contact us today for a FREE quote!CLICK mycfcu.insuranceaisle.com CALL 844-835-7646Insurance Products are not insured by NCUA or any Federal Government Agency; are not a depositof, or guaranteed by, the Credit Union or any Credit Union Affiliate; and may lose value. Use of CFCUInsurance Services is optional and not required as part of the loan approval.COMPREHENSIVECOVERAGEAlong with home insurance,we also offer protection for: Auto Life Pet Business And More!DearMember,We’re thrilled to be considered for the financing ofyour new home! Our goal for mortgage loanapplicants is threefold: Provide you with the most knowledgeable,reliable and efficient service Get you into your new home as quickly as possible Deliver a simple and convenient mortgage processfrom start to finishAt CFCU Community Credit Union, we work hardto exceed your expectations. We’re committedto providing the best financial services and lookforward to working with you to help financeyour home.*Please contact us today to begin the processof applying to finance your home!Our Mortgage LoanSales Associates:Kimberly RozellEast Hill Plaza Branch1022 Ellis Hollow Road, Ithaca, NY [email protected](607) 257-3282 x3610NMLS#: 340224Missy ParkTransformation Center202 East State StreetIthaca, NY [email protected] Phone: (607) 592-5295NMLS#: 335527Kate BarthTriphammer Branch99 Sheraton Drive, Ithaca, NY [email protected](607) 257-3282 x3410NMLS#: 1136791Nicole CottoneRoute 281 Branch (Tops Plaza)3910 Route 281, Cortland, NY [email protected](607) 257-3282 x3810NMLS#: 906260Jayne Ellis1050 Craft Road, Ithaca, NY [email protected](607) 257-3282 x3207NMLS#: 752499Kingdom Plaza Location1959 Route 5 and 20, Waterloo, NY 13165(607) 257-8500 x3310CFCU NMLS#: 299582Call or email today to make yourappointment, or apply online atwww.mycfcu.com/mortgage.*All loans subject to approval.
FOLLOW THE PATH TOHOMEOWNERSHIPGet a mortgage pre-approvalfrom a CFCU Mortgage LoanSales Associate and obtaingreat information aboutdifferent mortgage programs.Shop for a home;obtain a signedand acceptedpurchase offer.Both the buyer’sand seller’sattorneys approvethe purchase offer.Meet with your CFCU MortgageLoan Sales Associate, completeyour formal application andselect your loan program.CFCU will order the propertyappraisal and verify income,employment and assets.Your loan is approved! CFCUwill issue a CommitmentLetter; you will satisfyany conditions of thatcommitment.CFCU will clearthe loan to close.Choose your homeownersinsurance company (pleaseconsider CFCU InsuranceServices) and provide CFCUwith a paid receipt and a binder.*Seller’s and buyer’sattorneys will reviewtitle documents andthen forward themto CFCU for review.After the CFCU titlereview, your loanwill be scheduledto close.CFCU will prepare your ClosingDisclosure and provide this toyou at least three days priorto closing.You may want ahome inspection;schedule it now.It’s your closing day! You will sign documentsand obtain the keys to your new home!*Use of CFCU Insurance Services is optional and not required as part of the loan approval or closing process. Insurance Products are not Insured by NCUAor any Federal Government Agency; are not a deposit of, or guaranteed by, the Credit Union or any Credit Union Affiliate; and may lose value.THINGS TO CONSIDER
WHAT TO BRINGTO YOUR CFCUMORTGAGE APPLIC ATION1. PaystubsCovering the most recent 30-day period.2. W2sCovering the most recent two-year period.3. Tax ReturnsFrom the most recent two yearscomplete with all schedules if you areself-employed, including rental incomeor commission income. If you own acorporation or partnership, you will alsobe required to provide the most recenttwo years’ business returnswith all schedules.4. 1099s & Award LettersCovering the most recent two-yearperiod for Social Security or pensionand retirement income.5. Bank StatementsCovering the most recent two-monthperiod (full 60 days). Statements mustinclude all pages, including any blankpages. Your Mortgage Loan SalesAssociate can print your CFCUstatements for you.THINGS TO CONSIDERW H E NA HOME6. Real Estate OwnedIf you own any real estate that youare not selling, please provide yourmost recent mortgage statement,property tax receipts and proofof your homeowners insurancepremium. If you are sellingproperty, please provide acopy of the purchase offer.7. Separation Agreement& Divorce DecreeTo provide proof of propertybuyouts, child support paymentsor income and alimony paymentsor income.8. Valid IdentificationCan include a state-issued driver’slicense or passport.9. Non-U.S. CitizensMust provide Green Card orvisa paperwork.10. Purchase ContractFor the property, signed byall parties.P U R C H A S I N GTHINK ABOUTTHE FUTURETHINK ABOUTYOUR LIFESTYLEIf you’re going to start afamily soon, purchasinga one-bedroom condoprobably isn’t thebest option. Instead,consider how yourfamily or perhaps yourlifestyle will changeover the next severalyears and look at homesthat will accommodatethose needs.Put thought into yourlifestyle and purchasea home that reallyfits. If you don’t thinkyou want to mow alarge lawn, considerpurchasing a condo.If you don’t like longcommutes to work,purchase a home closerto your office. Do youlike the downtown/urban lifestyle or amore rural one? If youlike to walk to workor to shop, purchasein an urban area,perhaps near publictransportation. If youwant some space,look outside thedowntown areas.WHAT ARE YOURNEEDS VS.YOUR WANTSPrioritize your needs;then consider whatyou want. You maywant a home withthree bathrooms, butmaybe you’re onlyfinding houses with twobathrooms in your pricerange. Can you makedo with only those twobathrooms? Probably.You will not find theabsolute perfect housethat has everythingyou want, but you willfind homes that haveeverything you need.PRE-QUALIFICATIONVS. PRE-APPROVALA pre-qualificationmeans we’ve givenyou an estimate of theloan amount you’requalified for based oninformation you haveprovided us aboutyour debts, incomeand assets. We havenot pulled credit andhave not verified anyadditional information.A pre-approval means you have provided us with documentation to support yourincome, employment and available assets, and we have reviewed your credit. MostREALTORS will only allow you to view homes when you have a pre-approval letter.
ALL ABOUTCREDITYour credit score is a snapshot of yourrisk at a particular point in time. Scoreschange as new information is addedto your credit file. These changes aregradual! Over a short period of time,you will see slight changes to yourscore, either up or down. You will seebigger differences in your score over along period of time.LOOKING TO PURCHASE A HOME,BUT STRUGGLING TO SAVE FORTHE DOWN PAYMENT?We have six loan options that require 3.5% or LESS down.WHAT IS FICO?KNOW YOUR SCOREFICO is the abbreviation for Fair IsaacCorporation, which introduced the first creditrisk score in 1981. FICO is one of three scoresused by mortgage lenders. In addition toFICO, many mortgage lenders also use thescores provided by Equifax and TransUnion .You can obtain your credit score byrequesting a free credit report at websitessuch as www.annualcreditreport.com.Credit scores range from 300 (poor) to850 (excellent).HomeReady FHAVAUSDASONYMACFCU um6%Maximum4% Closing Costs6%Maximum3%Maximum3%MaximumPMI Required **YesYesNONENONEYesYesHow much has tobe own funds?0%0%0%0%1% 1,500How much can bea gift?100%100%100%100%99%NoneMinimum DownPayment *MinimumCredit ScoreKNOW THE DIFFERENCESCredit scores vary depending on the type ofreport obtained. There are many differentscores and ranges of scores. A mortgagecredit report will have three scores, one fromeach major credit repository. These scoresare used for the purpose of mortgage lendingand will be different from what we would call aconsumer credit score, which is the score givenby credit monitoring services. The algorithmsused to determine the score referenced formortgage lending are different from what’sused for credit monitoring. However, yourconsumer credit score will give you an overallpicture of your credit health.KNOW THE UNDERLYINGCREDIT FACTORSThere are five pillars behind the FICOscoring model, each weighted to determinethe score:1. Payment history (35%)Seller Concessions Cap2. Credit utilization (30%)3. Average credit age (15%)4. New inquiries (10%)5. Account mix (10%)As you can see, the payment history makesup the largest percentage of the score.Paying your full payment by the due date iscritical to a good credit score!*Borrower responsible for payment of closing costs and pre-paids. For an estimate, contact a CFCU Mortgage Loan Sales Associate.**PMI required with less than 20% down payment.All loans subject to approval. Other requirements and terms may apply.
T H E A P P L I C AT I O NMORTGAGEPRODUCTS& Approval ProcessFixed-Rate MortgageRate is fixed for the life of the loan.Good choice for long-term ownership.Construction LoansBuild your new home with our oneloan, two-step construction program.Adjustable-Rate MortgageRates will change over the lifeof the loan. Good choice forshort-term ownership.USDA Rural Development100% financing, purchases only.No Closing Cost MortgageFixed or adjustable rates and noclosing costs (special terms apply).Federal Housing Administration (FHA)Fixed rates, low down payment option.Veterans Administration (VA)100% financing for veterans.Jumbo LoansFor loan amounts greater than 484,350.State of New York Mortgage Agency (SONYMA)Low down payment options for first-time buyers.Land LoansFor the purchase of vacant, unimproved land.Once you have a signed and acceptedpurchase offer, you can make yourformal application for a mortgage withCFCU. You may already have a preapproval from CFCU; if that is the case,we will update your information andstart the process.Once you have signed the applicationand the required disclosures and havegiven us your intent to proceed, wewill begin processing your application.A Mortgage Processor will verify youremployment, income and assets;order the property appraisal; and workwith you to satisfy any outstandingrequests for documentation tosupport your application. Once wehave received the property appraisal,an underwriter will review your loanfile and provide a decision. Oncethe underwriter has approved yourloan, CFCU will issue a MortgageCommitment Letter. Your MortgageProcessor will continue to work withyou to help you satisfy any outstandingconditions of that commitment.Any missing documentation that isrequired by the underwriter becomes a“condition” of the loan. (Our convenientsystem allows member agents to seeyour status upload.) Once we havereceived any outstanding conditions,we will clear your loan to close, whichmeans the legal part of the process willbegin and you will now work toward aclosing date.Please note the more promptlyyou provide documentation tous, the quicker the approval!
THECLOSINGPROCESSYour attorney will be provided with a copy of your MortgageCommitment and will communicate with the seller’s attorneyto obtain the necessary title documents. Your attorney isresponsible for providing all of the title documentation to CFCUno less than 15 business days prior to closing.Once CFCU has reviewed the title work, we will communicatewith your attorney regarding a closing date and time. Yourattorney will contact you directly regarding the date andtime and will also coordinate the date and time with theseller’s attorney.Your loan will generally close at one of our offices, in eitherTompkins or Cortland County.COMMON QUESTIONSA B O U T010203T H EC L O S I N GP R O C E S SI need to bring funds to closing. How should I bring them?If the required funds are in your CFCU account, we complete a check-free internal transferat closing. Without funds in a CFCU account, you need to bring a certified check madepayable to CFCU. We only accept personal checks for amounts under 1,000.00. Yourattorney will communicate the dollar amount of the check to you.A No-Closing Cost Loan means I won’t need to bring any fundsto closing, right?Not necessarily. A No-Closing Cost Loan covers closing costs anyone would incur. Thismay include mortgage recording fees and mortgage taxes. Costs that are unique to youand your property, such as your escrow account or taxes coming due, are costs that arenot covered and may require that you bring funds to closing.When is my first payment due?When you pay your monthly mortgage payment, you are paying the interest for theprior month. This means that if you close any time after the first day of the month, youwon’t have a mortgage payment due until a full calendar month has passed. CFCU willcollect short-term interest (STI) at closing. STI is interest that accrues from your date ofdisbursement through the end of the month of your closing. This is the only time you willpre-pay interest.Here is an example of your first payment due date, using February 15 as your closing date:Due at Closing:STI Collected at Closing forFebruary 15 - February 280405Full Month of Interest Accruesfor March 1 - March 31Includes All of MarchInterest Due April 1I have an escrow account with my current mortgage. Will thecurrent balance be applied to my new escrow account at closing?No, your escrow account is property specific and will not transfer to the new mortgage.Even if you refinance, we will close the existing escrow account and open a new one.I waived the requirement for an escrow account. Why is anamount being collected for my taxes at closing?When closing, CFCU is required to collect and pay for any costs that could become a lienagainst your property. This includes tax bills, water bills and homeowners insurance, floodinsurance or association dues. If any of these are due before your first mortgage paymentdate, CFCU will collect and pay them.
A pre-approval means you have provided us with documentation to support your income, employment and available assets, and we have reviewed your credit. Most REALTORS will only allow you to view homes when you have a pre-approval letter. CFCU BR Home Buying Guide 2019 F19656.indd 5 5/7/19 1: