A) To speed up the processing of mortgage loans and keep costs low, borrower income, asset and liability documentation is requested from the borrower. If a borrower is unable to provide the documentation, it is important to notify the loan officer as soon as possible so other documentation options may be utilized.
A) Federal and state regulations require MCCU to disclose certain information to borrowers within specified time frames. By signing the disclosure documents, a borrower acknowledges receipt of the documentation, agrees to proceed with the application and provides evidence MCCU has met regulatory obligations. Please note: a borrower is not obligated to complete the loan transaction by signing the disclosure documents.
A) The interest rate quoted to a borrower by a mortgage loan originator is based on loan- specific factors identified in the borrower's application. These factors include, but are not limited to: loan purpose, credit history and score, loan to value, type of property, mortgage term, occupancy type, length of the lock requested and/or specific loan program.
A) Interest rates are fluid. When the market is volatile, interest rates quoted by a mortgage loan originator may only be valid for an instant. When the market is stable, rates may fluctuate very little or even remain the same for days. To guarantee a rate quote, the borrower must lock their loan with their mortgage loan originator. In Minnesota, the mortgage loan originator will issue a Minnesota Rate Lock Agreement and a Loan Estimate indicating the loan is locked for the specified period discussed at the time of locking. The borrower must sign and return the lock agreement for the lock to be valid. In Wisconsin, the mortgage loan originator will issue a Loan Estimate indicating the loan is locked and the expiration date of the lock.
A) When locking a loan, the mortgage originator may ask how long of a lock the borrower will require to close the loan. The mortgage loan originator will counsel borrowers about time frames required for documents, appraisals, underwriting, title and closing. Borrowers will be responsible for providing requested documentation in a timely manner to ensure the loan closes on time. Should the loan fail to close and disburse within the lock time frame, a lock extension may be purchased for a fee, or the borrower may be subject to current market conditions. Talk to your mortgage loan originator for details.
A) Often the original documentation provided at application raises questions that require verification of additional information. Loan payments on pay stubs that do not show up on credit reports may require additional documentation. Large deposits on bank statements may require explanation and supporting documentation.These are just a couple of examples for which additional documentation is required. Please note: MCCU will attempt to collect the information from other sources, but the borrower may be the best source for documentation and may be able to gather the information faster, providing for a quicker loan approval.
A) Lending guidelines require MCCU to validate and document the source of large deposits to ensure funds to be utilized to close a loan are from acceptable sources.
A) A mortgage loan originator can help to determine the maximum purchase price. With that said, as the borrower, it is important to determine the monthly housing payment that is comfortable for your household. Share your comfort levels with your mortgage loan originator so they may tailor a mortgage product to meet your needs.
A) Please contact the MCCU Financial Health Solutions department at 1-218-878-3673.