PMI or Private Mortgage Insurance is provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults.  It can make a big difference in how quickly your mortgage loan is approved and how much money you spend on a down payment. It is required if the loan amount is more than 80% of the home’s value.

This insurance benefits lenders and investor, but it also helps homebuyers too. Because Mortgage Center is protected by mortgage insurance, we can offer loans with low down payments. Without mortgage insurance, we would need to require a down payment of at least 20% of the loan amount. We understand that even if you have enough money for a large down payment, you may prefer to use it for other purposes. And if you don’t have a 20% down payment, it can take a long time to save it. While you’re saving, the price of your dream home is likely to rise – perhaps faster than you can save! Private Mortgage Insurance can be a big help if you’re like most borrowers in this type of situation. Contact a loan expert for more information at 877-288-2862.

Unless you have signed Mortgage Center’s Escrow Waiver Agreement, real estate tax payments will be made by our servicing department on your behalf with funds drawn from your escrow account.

Please be aware that property taxes may go up considerably on purchase transactions from what the previous owner had paid. In the state of Michigan, the municipality where the property is located reassesses the taxable value of the property when it transfers ownership. As the property’s taxable value is no longer governed by the rate caps used when the property remains under the same owner, the required property taxes may increase considerably.

This Department of Treasury Property Tax Estimator can help you determine how your property taxes may adjust.

On new home purchases and construction properties, it is the responsibility of the borrower to submit the paperwork to the applicable municipality for Homestead Exemption. Michigan’s cutoff date for the year is May 1st. Your closing officer will review this with you at closing or you may contact a Mortgage Center representative for more information at 877-288-2862.

Mortgage Center will set up an escrow account to collect funds for the payment of your real estate taxes, homeowner’s insurance, and private mortgage insurance, if necessary. Each month a portion of your payment will be held in your escrow account to make sure the funds are available when these payments are due. At that time, funds are drawn from the escrow account. You may pay your own real estate taxes and insurance if you meet Mortgage Center’s Escrow Waiver Requirements.

Our goal is to have your loan ready for closing as soon as possible! Generally the items that take the longest to receive are things such as the appraisal and the title work and the conditions that you need to provide us with. We’ll want to get the appraisal and title work ordered as soon as possible to avoid any delays. If you are purchasing a new home, we’ll do our best to meet the date you and the seller have agreed upon.

To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser’s qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.

The appraiser will create a written report for us and you’ll be given a copy at your loan closing. If you’d like to review it earlier, your Loan Facilitator would be happy to provide it to you.

Usually the appraiser will inspect both the interior and exterior of the home. However, in some cases, only an exterior inspection will be necessary based on your financial strength and the location of the home. Exterior-only inspections usually save time.

After the appraiser inspects the property, they will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called “comparables” and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property.

As an additional check on the value of the property, the appraiser also estimates the replacement cost for the property. Replacement cost is determined by valuing an empty lot and estimating the cost to build a house of similar size and construction. Finally, the appraiser reduces this cost by an age factor to compensate for depreciation and deterioration.

Using these three different methods, an appraiser will frequently come up with slightly different values for the property. The appraiser uses judgment and experience to reconcile these differences and then assigns a final appraised value. The comparable sales approach is the most important valuation method in the appraisal because a property is worth only what a buyer is willing to pay and a seller is willing to accept.

It is not uncommon for the appraised value of a property to be exactly the same as the amount stated on your sales contract. This is not a coincidence, nor does it question the competence of the appraiser. Your purchase contract is the most valid sales transaction there is. It represents what a buyer is willing to offer for the property and what the seller is willing to accept. Only when the comparable sales differ greatly from your sales contract will the appraised value be very different.

Both a home inspection and an appraisal are designed to protect you against potential issues with your new home. Although they have totally different purposes, it makes the most sense to rely on each to help confirm that you’ve found the perfect home.

The appraiser will make note of obvious construction problems such as termite damage, dry rot or leaking roofs or basements. Other obvious interior or exterior damage that could affect the salability of the property will also be reported.

Keep in mind, appraisers are not construction experts and won’t find or report items that are not obvious. They won’t turn on every light switch, run every faucet or inspect the attic or mechanicals. That’s where the home inspector comes in. They generally perform a detailed inspection and can educate you about possible concerns or defects with the home.

Accompany the inspector during the home inspection. This is your opportunity to gain knowledge of major systems, appliances and fixtures, learn maintenance schedules and tips, and to ask questions about the condition of the home.

No homeowner wants to be unpleasantly surprised to discover is that their newly-purchased dream home has major problems. An objective property inspection is a “must” in the home buying process. This is especially true when non-owner occupied homes are being considered. In these cases where there has been a foreclosure, potential buyers don’t have the benefit of a seller’s disclosure. Even newly constructed buildings should be inspected to uncover any potential builder oversights.

Home warranties or protection plans are not a substitution for an inspection. Buyers should beware of sellers who try to pass them off as such.

A qualified home inspector will educate the buyer about the condition of the dwelling—whether a single-family home, condo or townhouse. The inspector may expose defects that will allow the potential buyer to make a more informed, and confident, decision.

The money spent on an inspection really pays for peace-of-mind. Buyers who skip the inspection process to save money could later discover that the home needs repairs costing a great deal more than the inspection would have.

The cost of an inspection will vary, depending on the size of the property. It should include the roof; attic and visible insulation; plumbing; electrical; heating and cooling systems; kitchen and bathrooms; walls, ceilings, floors, windows and doors; basement and foundation; and all structural components. If the inspector finds a particular defect, or an infestation, he may suggest a secondary inspection by a specialist.

All buyers who plan to invest in an inspection; and everyone should; need to make their offer contingent on the results of the inspection. A contingency provides an opportunity for price negotiations if defects are discovered.

What you don’t know can hurt you when it comes to your home but with the help of a qualified home inspector, it doesn’t have to. Look into the National Association of Home Inspectors www.nachi.org or the American Society of Home Inspectors www.homeinspector.org for a professional in your area.

Mortgage Center was established by Credit Unions as a CUSO in 1990 as a way to offer mortgage services to their members. Because we are owned by Credit Unions our focus is a bit different from the average mortgage provider. We are truly looking out for the best interest of our Credit Unions’ members.

Today we serve over 60 Credit Unions throughout the Midwest. For over 25 years, we’ve been providing sensible, affordable, flexible mortgage solutions. Our loan experts are here to help familiarize you with the process and answer any questions or concerns that you may have. Whether you’re buying, building, or refinancing your home, we’ll help you turn a house into your home.

Our friendly loan experts are available to answer any questions that you may have Monday through Friday from 8:00 a.m. to 6:00 p.m. EST and Saturdays from 10:00 a.m. to 2:00 p.m. EST. Simply call 877-288-2862 to begin enjoying the benefits of Mortgage Center.

In addition to your down payment, you will need funds to cover the associated costs of getting a mortgage. Total costs include the charges for your appraisal, tax service, survey (if necessary), deposit, closing fee, flood certificate, title commitment, and recording fees. Additional costs can also be involved in a purchase depending on the particular situation, including; points, inspection fees, pre-paid interest, taxes, insurance, and private mortgage insurance (PMI).

A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. To assist you in evaluating our fees, we’ve grouped them as follows:

Third Party Fees

Fees that we consider third party fees include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees.

Third party fees are fees that we’ll collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees.

Taxes and other unavoidables

Fees that we consider to be taxes and other unavoidables include: State/Local Taxes and recording fees. These fees will most likely have to be paid regardless of the lender you choose. If some lenders don’t quote you fees that include taxes and other unavoidable fees, don’t assume that you won’t have to pay it. It probably means that the lender who doesn’t tell you about the fee hasn’t done the research necessary to provide accurate closing costs.

Lender Fees

Fees such as points, administration and escrow waiver fee (if an escrow waiver is requested and approved) are retained by the lender and are used to provide you with the lowest rates possible. This is the category of fees that you should compare very closely from lender to lender before making a decision.

Required Advances / Pre-Paids

You may be asked to prepay some items at closing that will actually be due in the future. These fees are sometimes referred to as prepaid items.

One of the more common required advances is called “per diem interest” or “interest due at closing.” All of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you’ll pay interest, from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we’ll collect interest from June 15 to July 1 at closing. This also means that you won’t make your first mortgage payment until August 1. This type of charge should not vary from lender to lender, and does not need to be considered when comparing lenders. All lenders will charge you interest beginning on the day the loan funds are disbursed. It is simply a matter of when it will be collected.

If an escrow or impound account will be established, you will make an initial deposit into the escrow account at closing so that sufficient funds are available to pay the bills when they become due. This type of charge should not vary from lender to lender.

Whether or not you must purchase mortgage insurance depends on the size of the down payment you make. And as a credit union member, you are eligible to receive reduced mortgage insurance rates.

If your loan is a purchase, you’ll also need to pay for your first year’s homeowner’s insurance premium prior to closing. We consider this to be a required advance.

You can expect great service! You can get started online by completing our online application. Or you can call one of our Loan Originators today at 877-288-2862 to get your application started over the phone.

Call one of our friendly loan experts at 877-288-2862. Loan Originators are available to take your application over the phone Monday through Friday from 8:00 a.m. to 6:00 p.m. EST and Saturdays from 10:00 a.m. to 2:00 p.m. EST. The Loan Originator will ask you several questions to try to assess your home financing needs and goals. During this counseling session, feel free to ask any questions you may have and put their years of experience to work for you! A deposit will be required when you are ready to apply. Our deposit includes the cost of your appraisal, which can vary at times depending on the property. This deposit will be credited towards your closing fees and can be applied directly to your credit card or you may submit a check by phone. Once your Loan Originator has obtained the necessary information to complete your application, they will review the application with you for accuracy and submit it for a lending decision.

Or apply Online. You can access our online application 24/7 at MortgageCenter.com. Once you have submitted your application, one of our Loan Originators will contact you to review your submission and  ask you a few additional questions. If you have any questions regarding your application at anytime, please call 800-353-4449.

If you are not initially approved, your Loan Originator may ask for further documentation. We understand that some situations are complicated and further documentation may be required to fully understand them. Once your Loan Originator has received this additional documentation, your file will be reviewed and the application will be resubmitted for approval. Your Originator will contact you regarding your application status and next steps.

Your loan will be processed.
We’ll order the appraisal from a licensed appraiser who is familiar with home values in your area. Depending on your finances and the loan amount requested, different types of appraisals are used. The appraiser will need to go into the home. For more information about appraisals, see “Understanding Home Appraisals.”

Title insurance will be necessary. If you’re purchasing a home, we’ll work with the real estate broker or seller to ensure the title work is ordered as soon as possible. If you are refinancing we’ll take care of ordering the title work for you. We’ll use the title insurance to confirm the legal status of your property and to prepare the closing documents. Once everything is completed and passed through Underwriting, your application paperwork will be submitted to our Quality Assurance (QA) Department for final review. Your closing will be scheduled once QA has determined that the file is completely compliant with today’s tough guidelines and all documents are up-to-date, including reverification of employment and credit.

We’ll contact you to coordinate your closing date.
After we receive final approval from QA, our Closing Department will contact you, the selling agent, the title company and the seller to coordinate your closing. If you are purchasing a For Sale By Owner property, we can assist with coordinating the closing through our very own title company, Mortgage Center Title LLC. The professionals at Mortgage Center Title have guided members through smooth closings for years. Feel free to contact them with any questions you may have.

The closing will take place at the office of a title company or attorney in your area who will act as our agent, or at your credit union. The day before closing, a Closing Agent will contact you to walk through the final information so that there won’t be any surprises at closing. In most cases, the final closing figures will be available 24 hours prior to closing.

That’s all there is to it! You’re on your way to the most convenient home loan ever!

According to the situation and Mortgage Center policies and guidelines, we generally require that two to seven years have passed before you can qualify for a mortgage. In the case of a foreclosure the waiting period is 7 years. With a short sale, the seven year wait may be reduced to a minimum of 2 years with a downpayment of at least 20%. In the case of a bankruptcy, we require that 4 years have passed. In addition, in all cases you must have re-established an acceptable credit history with new loans or credit cards, and your minimum credit score must be 640.

For your initial pre-approval we’ll ask questions about your income, assets, credit history and employment. In addition, you will be required to pay a minimal fee to cover the cost of your credit report so that we can verify your credit history.

The first step in buying a house is determining your budget. There’s an often-quoted rule of thumb that says that you can afford a house that costs up to two and one-half times your annual gross income. In reality, everyone’s individual situation differs and your maximum mortgage eligibility is determined by weighing your income, existing debts, the purchase price of the house, your down payment, the interest rate on the loan, and the cost of property taxes and insurance.

This calculator steps you through the process of finding out how much you can borrow. Simply enter in your information into the required fields to determine the maximum purchase price of the home for which you qualify.

Your credit standing impacts many of the financial and life decisions that are made about you, including the ability to secure loans, obtain the best interest rates, and in some cases, even gain employment. Your credit score is used to predict how likely it is that you will repay a new loan.

The credit scoring system was developed based on experience with millions of consumers. In general, the computer model assigns points to information in a credit report. For example, making payments on time every month is positive for the score. Charging the maximum amount available on a credit card is negative. The computer adds the positive and negative points, and the resulting number is your credit score.

Sometimes people think they have good credit. Then, they apply for a loan and are surprised to learn that there are some problems with their credit. That’s why it’s critical that you get a copy of your credit report and credit score a few months before making such a major purchase. You can easily obtain your credit report through www.annualcreditreport.com. In addition to providing you with your credit report, they also offer a variety of credit management tools and educational resources.

Once you have obtained your credit report, check it thoroughly to make sure the information is accurate. It’s possible for incorrect, incomplete or outdated information to appear on your credit report. Keep in mind that you are the only one who’ll notice if anything is out of the ordinary and it is up to you to find any inaccuracies. Mistakes on your credit report can drastically lower your chances of qualifying for the mortgage and interest rate you deserve.

If you find an error, take the following steps to fix it as soon as possible. If you see evidence of fraud, contact the credit reporting agencies immediately. Explain the situation and ask that a fraud alert be placed in your file. Identity theft is the fastest growing white-collar crime in America and, in addition to being the leading fraud complaint last year, on average the rate of incidents has more than doubled each year since 2000.

It’s more important than ever to stay on top of your credit history and know what’s in your credit report.

For more information about how to understand and improve your credit score, visit the Federal Reserve’s Consumer’s Guide to Credit Reports and Credit Scores.

This deposit is charged for access and review of your credit and / or property in order to make a lending decision. Once the application process is started, under certain circumstances, some or all of the deposit may not be refundable. If Mortgage Center and your credit union determine that we are unable to provide you with a mortgage (and the appraiser has not performed an appraisal on the property) we will gladly issue you a refund.

The first step in deciding which program is right for you is to take a realistic look at your individual situation. How much do you have for a down payment? How long do you plan on staying in the home before selling? Are you willing to pay points up front for a lower interest rate? Do you expect your annual income to increase in the near future or will it stay the same throughout your career? Does your income vary from month to month? How is your credit history? Are you purchasing an existing home from a seller?

We offer a great variety of mortgage programs so you can be sure to find the program that best suits your needs.

You can choose between our fixed rate mortgages with the option of a 10, 15, or 30 year term in which the interest rate holds throughout the life of the mortgage. As always, our friendly loan experts are available to assess your current situation and guide you toward the product that’s right for you Monday through Friday from 8:00 a.m. to 6:00 p.m. EST and Saturdays from 10:00 a.m. to 2:00 p.m. EST at 877-288-2862.

There are “4 C’s” of a loan approval.

Capacity – Can you repay the debt? We will ask for employment information including your previous occupations, how long you have worked and how much you earn. Essentially we’re verifying that your current job situation and income levels are stable.

Credit History – Will you repay the debt? We’ll look at your past credit history to see how much you owe, how often you borrow, whether you pay bills on time and whether you have a history of living within your means.

Capital – Do you have enough cash to meet the down payment requirements associated with your pending mortgage, closing costs, taxes, and insurance? Do you need a gift from a relative? Will you have a cushion left after your home purchase or will you use your last penny on purchasing your home?

Collateral – Will we be fully protected if you fail to repay the loan? We must be sure the property you are buying is sufficient to back up the loan.

If your home or property has sustained any damages and you have decided to submit a claim to your Insurance Company, your loss draft payments will be made payable to you and Mortgage Center.

When you receive a loss draft claim check, please contact us at 833-218-8564 so that we may discuss the loss draft claims process with you. Please review the list of documentation that will be required in order to process your check:

• The Estimate of Damages or Adjusters Report provided by your Insurance Company
• Contractor’s statement of repair: [estimate, bid, invoices, and/or detailed draw schedule] this would be provided by your Contractor and must be signed.
• Contractor’s License
• W-9 from a Licensed Contractor
• Copies of paid receipts and description of work for repairs already completed
• Statement or certificate of completion of work

According to your mortgage, the loss draft claim funds must be used to either restore or repair the property. Please be advised that Mortgage Center holds the right to conduct progress inspections of the repairs to your property to ensure that the funds are being used for that purpose.