At Home in Berks - June 2017 - 13

* Credit Standing. Carry low credit card balances, or pay
them off, along with any other outstanding bills before
applying for the mortgage.
* Credit Accounts. The amount of a borrower's credit accounts can make a difference when applying for a mortgage. Avoid closing current accounts or applying for new
ones, as this can make the lender suspicious.
* Down Payments. The more money a borrower can afford
to pay up front, the more likely they are to be approved.
It also makes for a lower loan. Of course, borrowers
with an excellent credit history are likely to be approved
regardless of how much money they can afford to
put down. For those with less than perfect credit, the
amount of a down payment could make the difference
between approval and rejection.
* Your Income. Lenders look for steady sources of income,
so avoid changing jobs or quitting right before submitting a mortgage application.
* Interest Rates. Loans are not approved or denied based
on interest rates, but they do help to determine monthly
payments. Interest rates can also change while the loan
application is being reviewed and processed by the lender. Therefore, if the borrower thinks the interest rates
could rise, they may consider paying a "lock-in" fee in
order to guarantee a favorable rate.

MORTGAGE
ONLY 3% DOWN
NO CLOSING COSTS
LOW 3.875% APR*
Don't settle on your mortgage. Get the terms
you deserve from Visions.

* Available Funds. Along with a good down payment,
borrowers should have funds set aside to cover closing
costs, and (if necessary) pay for points. Alfarano advised
that closing costs can be considerable. "Closing costs can
range from 5 to 7 percent of the total purchase prices,
so on a home purchase of $200,000, a borrower may
need as much as $14,000 to cover closing costs," he said.
Avoid major purchases that may deplete any available
funds prior to purchasing a new home.
* Price Ranges. In order for a borrower to get an idea of
how much they can afford monthly, it is important to
figure out their debt-to-income ratio. Lenders are unlikely to approve the mortgage for a house the borrower cannot afford.
* The Lender. Diligence is an asset, and every lending
institution is different. Learn the reputation and history
of the lender, and find out how many mortgage applications they approve, as well as how many they deny. If
the lender denies 20 percent of borrowers who apply, it's
not a good sign.

v i s i ons f c u.org
Pennsylvania

New Jersey

New York

Federally insured by NCUA.
* APR = Annual Percentage Rate. Credit union membership required with a $25 minimum deposit.
Promotion valid on the 15/15 Adjustable Rate Mortgage (ARM) product only. New purchase or
refinance of non-Visions debt. One- to four-family, owner-occupied, primary residence only. Maximum
mortgage dollar amount funded is based on region. Estimated savings of closing costs, which varies by
geographic market and property, would be at least $3,370, including, but not limited to, the following
costs: appraisal, flood determination, application fee, credit report, lender attorney fees, recording fee,
title insurance, and mortgage tax. Borrowers are responsible for initial escrow setup, interim interest,
owner's title insurance, tax service fee, borrower's attorney fees, survey, and private mortgage
insurance, if applicable. Monthly payment would be $470.43 on a $100,000 mortgage at 3.875% APR
with a 30-year term. Payment example does not include amounts for taxes and insurance premiums.
Cannot be combined with any other promotion or offer. Submit applications by Oct. 31, 2017.

VISIONS FEDERAL

june 2017 AT HOME IN BERKs

ISSUE: 1706
ORG/PUB: At Home in Berks

http://www.visionsfcu.org

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