Member First Mortgage FAQs - InTouch Credit Union
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Member First Mortgage FAQs

How do I apply for a mortgage?

Simply apply online through our secure online system by clicking the apply now button. If you prefer to speak with a loan officer contact us at (800) 337-3328.

What is a P&I payment?

P&I is the combined principal and interest you pay your lender each month. The principal amount repays a portion of the amount of money originally borrowed. The interest amount pays the monthly interest accumulated on your outstanding balance. Your total payment will typically include additional items, such as, real estate taxes and insurance premiums.

What is an origination charge?

The origination charge is the amount charged for services performed on the initial loan application and loan processing. This includes all charges (other than discount points) that lenders and brokers involved in the transaction will receive for originating the loan. It includes any fees for application, processing, underwriting services, and payments from the lender for origination.

What are points?

Points (sometimes referred to as discount points or mortgage points) are paid to the lender, usually at mortgage closing, in order to lower the interest rate. One point equals one percent of the original loan amount.

Why does my lender require homeowner’s insurance?

Homeowners insurance is an insurance policy that protects both you and your lender in case of loss or damage to your property. The insurance company is chosen by you and the monthly homeowners insurance premium is often included as part of the monthly mortgage payment.

Do I need great credit to get a mortgage?

Not necessarily, but it will certainly help. Depending on the product type, ie: Conventional, FHA, or VA, the credit score can impact your interest rate. The higher your credit score, the better interest rate you get. The minimum score required varies by product type, but generally a minimum 620 credit score is required.

Do I need 20% Down Payment to get a mortgage loan?

The short answer is no! Depending on the product type and your own eligibility you can get a loan with as little as 3.5% down for FHA loans, 5% for conventional loans and no down payment for eligible Veterans! Ask your loan officer for more details.

What is the difference between a pre-qualification and a pre-approval?

While both are used to see if you qualify for a certain loan amount, a pre-qualification is calculating numbers based on your stated income, employment, assets and estimated credit score while a pre-approval involves pulling a credit report, and sometimes uses documentation to support income, employment and assets. Therefore, a pre-approval letter is a much stronger indicator of your approval than a pre-qualification letter is and maybe required by realtors or sellers prior to executing a purchase contract.


NMLS ID# 149532