Home Mortgages FAQs

Pinnacle Federal Credit Union is an equal housing lender. NMLS#423010. The information below is for informational and educational purposes only. Not all applicants will qualify.

Getting you started toward home ownership.

Know before you buy. The mortgage lending industry has changed dramatically over the last several years. Many processes and procedures are now highly regulated and require documentation that lenders were not required to collect in the past. Lenders are also required to inform and send you certain documents within a timeline based on the submission of your application. Lenders and their representatives must be registered within the National Mortgage Licensing System in order to speak to you about a mortgage. Their NMLS identification number is the unique identifier assigned to registered Mortgage Loan Officers and should be displayed. Be sure to ask if you are speaking with an NMLS registered Loan Officer. It’s important that you have all of the information before you begin the mortgage process.

Before you start looking for a new home, ask yourself:

How Much can I afford?

It’s important to find a monthly payment that you are conformable with. Start with how much you feel comfortable spending on housing. Most budgets call for setting aside 28% of your post-tax income for house payments, including homeowners insurance and property tax. Example, if your annual income after taxes is $60,000, 28% of that is $16,800, or $1,400 per month. However, every situation is different. You may have costs in your monthly budget that affect your bottom line, such as childcare, car payments, student loans. Use our loan calculator to determine what your potential monthly payment can be.

Do I have to put money down on a house?

Most lenders will require a down payment. The amount of the down payment will be based on the type of loan and the amount of the house. Many first-time home buyers program require as little as 3.5% down. Keep in mind that for down payments less than 20% on conventional loans, private mortgage insurance (PMI) may be required.

What are closing costs?

Mortgage closing costs, also known as settlement costs, are fees charged for services that must be performed to process and close your loan application. Examples of mortgage closing costs include title fees, recording fees, appraisal fees, credit report fees, pest inspection fees, attorney’s fees, taxes and surveying fees. The closing cost of a loan will vary depending on your geographic location. Lenders are required by law to provide you with two documents – the Loan Estimate and the Closing Disclosure – which outlines your closing costs and help you avoid surprises at the closing table.

What if my credit is less-than-perfect,can I still purchase a home?

Yes. Be sure to keep in mind that lenders don’t just look at your credit history, but also at your ability and willingness to pay in the future. Not everyone will be approved, however, at Pinnacle FCU, we may be able to help you buy a home.

What documents will I need to apply for a mortgage?

For most loan types, require documents that verify your employment, income and assets, and may include:
• Your social security number
• Pay stubs for the last two months
• W-2 forms for the past two years
• Bank statements for the past three months
• One or two years of federal tax returns
• Information on current debt, including car loans, student loans and credit cards

How do I manage buying and selling a house at the same time?

Selling your current home and buying a new one can be a daunting task, but it can be done successfully. Be sure to enlist the help of an experienced real estate agent in your area. You’ll need a professional who understands the dynamics of your unique needs and can handle both sales accurately and expeditiously. Use your negotiating power to extend the window before your closing date. Instead of the typical 45 days before closing, extend your time to 60 or 90 days to ensure you have time to find a home that best suits the needs of you and your family. You will find, most of the time, homeowners need to sell their home first to financially qualify to buy a new home.

What are the benefits of refinancing?

You may want to consider refinancing if you want to pay off high-interest debt, shortening the length of your repayment term or lowering your monthly mortgage payment.

Can I refinance to take cash out of my house?

Yes, we offer a variety of options that allows you to tap into your home’s equity and take cash out. Speak to one of our Home Loan Specialists to talk about your options.