Selecting Your Mortgage

There are two big factors to consider when selecting your mortgage: a fixed rate or adjustable rate mortgage, and how long to make the term.

• Fixed-Rate Mortgage: Your interest rate and monthly payments will remain constant during the life of the home loan. We offer multiple year terms on fixed-rate mortgages.
• Adjustable-Rate Mortgage (ARM): Your interest rate and monthly payments will change periodically based on the value of an index, plus a margin. We offer a 5-1 ARM, which has a fixed interest rate for the first five years and an annually adjusted rate thereafter (maximum term 30 years).

What Can I Afford?

With so many options in today’s housing market, we suggest identifying the appropriate price range for your financial situation. Our mortgage loan originators can help you determining this appropriate range.

Loan Approval

Your qualification for a mortgage loan is based on your ability to make monthly payments (assuming the minimum down payment and closing costs are covered). We also consider your credit history, household income and the appraised market value of the home you are purchasing.

The Loan Process

We know the time after you submit an application can be stressful. We've found that the process usually takes 30 to 45 days from start to finish. Here's what goes into the process:

• We verify your application packet is complete
• The property is appraised
• We verify your employment and funds
• Your credit report is ordered
• Your loan officer reviews all the items above
• We prepare the loan for your commitment
• Once you've accepted and any conditions are met, a closing can be scheduled
• We conduct a title search
• The property is surveyed
• Time for closing!

Title Services

For title services, TTCU recommends Integrity Title & Closing, LLC. Integrity Title is a wholly-owned subsidiary of TTCU Federal Credit Union and was formed to ensure that everyone receives the same high level of TTCU service throughout the closing process.

For information, call 918-749-9130, or e-mail [email protected].

Important Real Estate Terms

• Cap: A provision of an adjustable-rate mortgage that limits how much the interest rate or mortgage payments may increase or decrease.
• Contingency: A condition that must be met before a contract is legally binding. For example, the home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report.
• Debt-To-Income Ratio: The ratio of a borrower’s monthly payment obligation on long-term debts divided by gross monthly income expressed as a percentage.
• Escrow: Money, documents or other items of value in the care of a third party. The third party releases the items upon the fulfillment of a condition. For example, a deposit by the borrower to the lender would be kept in escrow, to pay real estate taxes and insurance premiums when they become due.
• PMI: Private mortgage insurance protects the lender in case of default by the borrower. PMI is often used when buyers get financing with less than a 20% down payment.
• Points (Loan Discount Points): Prepaid interest assessed at closing by the lender. Each point is equal to 1% of the loan amount.
• Principal, Interest, Taxes and Insurance (PITI): The four components of a monthly mortgage payment. Also referred to as the loan payment.
• Title Insurance: A separate insurance policy purchased for the benefit of the lender and buyer. The policy protect against error, omissions or defects in the title of a property.

Two HELOC Options:

• With a 1-month ARM, the initial rate is in effect for one month. After the first month the annual percentage rate is based on the value of an index, plus a margin. The annual percentage rate may vary. There is no minimum rate and the maximum rate is 18%.
• With a 3-1 ARM, the initial rate is fixed and good for three years. After three years the annual percentage rate is based on an index plus a margin and may vary monthly. There is no minimum rate and the maximum rate is 18%.

Minimum Monthly Payment

The minimum monthly payment is the accrued interest only or $30, whichever is greater, for five years. This five-year period is called the draw period. During the draw period, you may keep the credit line open even if it has a zero balance. Additional five-year draw periods may be requested. The loan is then converted to a 15-year amortized loan during which the payments include both principal and interest.

Processing your HELOC

The following information is needed to process your new Home Equity Line of Credit. Please bring this documentation so your application is not delayed.

• Identification: Current driver's license and social security card for each borrower.
• Income verification:
• One full month’s (30 days) paycheck stub
• W-2 or 1099s for past two years
• Federal income tax returns past two years
• If self-employed, commissions or rental income
• Corporate tax returns with all schedules
• Year to date P&L
• Assets: Most recent statements for all applicable
• Savings and checking accounts (2 months on all accounts other than TTCU)
• Stocks, bonds, annuities
• IRA or 401K
• CDs
• Deed: Filed warranty deed, quitclaim deed or legal description
• Insurance: Current homeowners insurance policy declarations page