Real Estate FAQs
General
- How can I apply for an NWFCU first mortgage or equity loan?
- What are the current mortgage and equity loan rates?
- How can I get preapproved?
- What types of loans do you offer?
- What is CU Realty?
- What is an escrow account?
- Where can I find a glossary of real estate terms?
- Why am I receiving mortgage-related solicitations in my mailbox?
- When are your free home buying and selling seminars offered?
- When should I expect to receive my Form 1098?
- What is Private Mortgage Insurance (PMI)? How can I avoid paying it?
- How can I get home owners insurance?
- What is a reverse mortgage?
- Do you offer settlement services?
- What is CU Realty and how does it work?
- Can I use the CU Realty program if I live outside of the D.C. Metro area?
- I'm buying and selling, can I use CU Realty for both transactions?
- If I use the CU Realty program, how and when will I actually receive the rebate?
- Am I limited to how I can use my CU Realty rebate?
- What are the benefits of homeownership?
- How do I find a real estate agent?
- How much do I need to save for a down payment?
- What are the costs of owning a home?
- What do I need to take with me when I apply for a mortgage?
- How much should I offer when I find a home I'm interested in purchasing?
- What happens if my bid is rejected by the seller?
- What will happen at closing?
- How can I get a copy of my credit report?
- Is it possible to browse through home listings in my area on my own?
- What is the difference between being pre-qualified and preapproved?
General Real Estate FAQs
How can I apply for an NWFCU first mortgage or equity loan?
Applying for an NWFCU first mortgage or home equity loan is easy, you can:
- Apply online
- Stop by a branch and pick up an application
- Apply in person by appointment or on the phone call our Mortgage Lending Department at 703-709-8921 (toll-free 1-866-709-8921), Mon.–Fri., from 8am–4:30pm ET.
- Request an appointment
What are the current mortgage and equity loan rates?
For the current NWFCU first mortgage and home equity loan rates:
- Click here
- Call our Mortgage Lending Department at 703-709-8921 (toll-free 1-866-709-8921), option ‘3'
How can I get preapproved?
Getting preapproved for an NWFCU mortgage is a wise decision – it will show the seller of the home you are a serious, qualified buyer and are ready to make a purchase. It may also give you additional negotiating leverage, especially if the seller has offers from other buyers who are not preapproved. To submit an application for pre-approval, click here.
What types of loans do you offer?
NWFCU offers a variety of affordable mortgage loan products to meet the needs of our diverse membership, including fixed, variable and high-balance loans.
Our professional mortgage staff is committed to helping you find the option that is right for you and your family. To learn more, contact our Mortgage Team.
What is CU Realty?
CU Realty and NWFCU have formed a partnership that allows you to earn a cash rebate of the sales price of a home when you buy or sell through a CU Realty Approved Agent. The comprehensive, licensed real estate program is easy to use and offered completely complimentary to our members.
In addition to the generous cash rebate you receive, the CU Realty program also allows you to enjoy unrestricted access to the local multiple listing service (the listing database Real Estate Agents use), view photos of homes for sale, get maps and obtain reports on schools and neighborhood demographics. It's your one-stop shop for home buying, selling and saving! To get started or to learn more, click here.
What is an escrow account?
An escrow account is a type of forced savings account that is made up of a portion of your monthly mortgage payment to pay for expenses such as property taxes, mortgage insurance (if applicable) and homeowner's insurance premiums. An escrow account is typical of any mortgage lender you'll deal with.
At NWFCU, we keep two month's of escrow funds in reserve. Each year on the anniversary month of your closing date, we perform what is called an escrow analysis to ensure that your current monthly deposits are sufficient to pay these fees. If there is a shortfall or surplus, we raise or lower your monthly mortgage payment accordingly. Afterward, you'll receive a copy for your records, as well as new payment coupons (if you use coupons) to reflect your updated monthly payment. If you have any questions regarding your NWFCU escrow account, please contact our Mortgage Team.
Another benefit of having your loan serviced by NWFCU is that we pay interest on our escrow accounts.
Where can I find a glossary of real estate terms?
When buying a new house, it can be overwhelming to hear all the real estate terminology and details. To help you navigate through the new lingo, we've compiled a list of helpful definitions to define and explain what you are hearing. Click here for the complete list.
Why am I receiving mortgage-related solicitations in my mailbox?
NWFCU takes every necessary precaution to protect and ensure your privacy. When you get a mortgage however, your name, address, mortgage loan amount and the name of your mortgage lender become a matter of public record. Companies may access this information and use it to seek new business from homeowners. As a result, you may receive solicitations in the mail from other companies such as lenders and mortgage insurance companies. Please be assured that NWFCU does not and will never sell your personal information.
When are your free home buying and selling seminars offered?
Throughout the year, NWFCU hosts free evening and weekend seminars to help you learn the basics of home buying and selling. For a current list of upcoming seminars, click here.
When should I expect to receive my Form 1098?
Your Form 1098, which reports the interest paid on your NWFCU mortgage, will be mailed mid January of each year. If you have any questions upon receiving your Form 1098, contact our Mortgage Team.
What is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is special insurance required by a lender if the borrower puts forth a downpayment that is less than 20%. PMI protects the lender against loss in the event that the borrower defaults – experience has shown that the less money a borrower has invested in a home, the greater the probability that borrower will default on the mortgage.
How can I get home owners insurance?
NWFCU members can get home owners insurance is offered through our subsidiary Northwest Financial LLC.
What is a reverse mortgage?
The opposite of a traditional mortgage, a reverse mortgage pays you money, turning your home's equity into cash, a line of credit, monthly income or a combination thereof. Funds are tax-free (consult your financial advisor) and provide a unique source of financial security to give you the freedom and peace of mind to fully enjoy your retirement years. NWFCU has partnered with Credit Union Mortgage Association (CUMA) to offer this loan option to our members. Our Mortgage representatives can put you in touch with a CUMA Advisor who will answer all of your questions and provide counsel to help you decide if this loan is right for you.
Do you offer settlement services?
We do offer settlement services through Northwest Financial LLC. Northwest Title and Escrow LLC (NWTE), a subsidiary of Northwest Financial, LLC, is a full-service title company dedicated to providing exceptional real estate title and escrow services.
CU Realty FAQs
What is CU Realty and how does it work?
CU Realty and NWFCU have formed a partnership that allows you to earn a cash rebate of 20% of your agent's commission, based on the sales price of a home when you buy or sell through a CU Realty Approved Agent. The comprehensive, licensed real estate program is easy to use and offered completely complimentary to our members.
In addition to the generous cash rebate you receive, the CU Realty program also allows you to enjoy unrestricted access to the local multiple listing service (the listing database Real Estate agents use) , view photos of homes for sale, get maps and obtain reports on schools and neighborhood demographics. It's your one-stop shop for home buying, selling and saving! To get started or to learn more, click here.
Can I use the CU Realty program if I live outside of the D.C. Metro area?
At this time, the CU Realty program is available to NWFCU members in the following states only: AZ, CA, CO, D.C., KS, MD, MN, MO, NM, NV, OH, TX, VA & WV, but new states and new real estate agents are continuously joining the program.
I'm buying and selling, can I use CU Realty for both transactions?
Yes! When you use a CU Realty Approved Agent to buy and/or sell a home, you'll receive the rebate on each transaction.
If I use the CU Realty program, how and when will I actually receive the rebate?
Members who use the CU Realty program to buy and/or sell their home will receive their cash rebate once the sale or purchase is complete. In most cases, members receive the rebate at the time of closing. However, some situations may dictate that a check be mailed following the closing. Members who receive their rebate after closing should receive the funds within 30-60 days. FHA loan rebates must be taken at closing.
Am I limited to how I can use my CU Realty rebate?
Most members elect to apply the rebate towards their closing costs. Members who receive their rebate after the closing may use the rebate for anything they choose. FHA loan rebates must be taken at closing and cannot be used towards down payment.
First-Time Homebuyers FAQs
What are the benefits of homeownership?
The benefits of homeownership are both emotional and monetary. By owning your own home, you'll not only have the freedom to dictate the style and overall feel, but you'll enjoy the savings that can come when you deduct your property taxes and mortgage loan interest on your federal (and in most cases, state) income taxes.* You'll also build equity with each mortgage payment you make, which you can use to borrow against (in the form of a home equity loan or line of credit) or convert to cash when you sell.
*Consult a tax advisor
How do I find a real estate agent?
NWFCU members can connect with an agent through the members only real estate rebate program. Our network of CU Realty Approved Agents have years of experience and have been hand selected by our Mortgage Team.
How much do I need to save for a downpayment?
The amount you'll need for a down payment depends on several factors, including, the cost of the home and the type of mortgage you get. Usually though, you'll need to come up with enough money to cover three specific costs: earnest money, downpayment and closing.
Earnest money is the deposit you make when you submit your offer. It shows the seller that you're serious about buying the house. Earnest money is kept in trust until settlement, at which time it's applied to your closing costs. If your offer is not accepted, the earnest money will be returned to you.
The downpayment is a percentage of the home's cost that you pay at settlement. The standard downpayment used to be 20% of the price of the home. There are a variety of mortgage programs that let you buy with substantially less than 20% down, especially if you're a first-time buyer. Remember though that the more money you put into your downpayment, the lower your monthly mortgage payment will be.
Closing costs are made up of various processing expenses that come when you buy a house. They're usually 3 to 4% of the purchase price and are paid at settlement. When you apply for a mortgage loan, your lender will give you a closing cost estimate so you'll know how much you'll be expected to pay.
What are the costs of owning a home?
The monthly mortgage payment isn't the only cost to consider when deciding if you're ready to buy. You should also consider:
- Maintenance costs. If the refrigerator breaks, there's no landlord to replace it for you – the money comes out of your pocket.
- Homeowner's insurance
- Association or condo dues (depending on where you buy)
- Property taxes. These are normally rolled into your monthly mortgage payment, especially if you've put less than 20% down.
What do I need to take with me when I apply for a mortgage?
You'll save yourself a lot of time if you have all the necessary paperwork with you when you visit your lender. When you apply for an NWFCU mortgage loan, we'll need the following details:
- Borrower(s) information: Social Security number(s), age(s) and NWFCU/bank account number(s)
- Recent employment history with proof of income
- Assets and debts, including institution name, account type and balance / estimated value
- Prepayment of the credit report and appraisal fees (if applicable)
How much should I offer when I find a home I'm interested in purchasing?
Your real estate agent will be able to guide you through this decision, but there are several factors to consider:
- Is the asking price in line with prices of similar homes in the area? Ask your agent to show you some past sales in your neighborhood.
- Is the house in good condition or are there things in need of repair? Will you have to spend a lot of money to make it the way you want it to look?
- How long has the house been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer.
- How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. You may even want to offer more than the asking price, if you know you are competing with others for the house. This is especially true if you're looking to buy in a popular area.
What happens if my bid is rejected by the seller?
Bids are often rejected, especially in a competitive housing market where the seller often has multiple offers on their house. However, don't let this discourage you. If your bid is rejected, you can negotiate with the help of your agent. You may have to offer more money, but you may also ask the seller to cover some of your closing costs, or to make some repairs to the home. Negotiations can go back and forth several times before the deal is made.
What will happen at closing?
At closing, you'll sit down with your agent, the seller's agent, the seller (in most cases) and a settlement agent. Most often, the settlement agent is recommended by your lender or real estate agent. This individual draws up the legal documents regarding your new home and will administer the paperwork for you to sign. A good settlement agent will explain what each document means, but you should make sure you understand what you're signing and ask questions if you don't. Once all the paperwork is signed, you'll give your downpayment and closing cost money to the settlement agent.
How can I get a copy of my credit report?
The Fair and Accurate Credit Transactions (FACT) Act entitles you to a free credit report every 12 months from each of the three national credit bureaus. To order your free credit report visit www.annualcreditreport.com.
Is it possible to browse through home listings in my area on my own?
Yes! Through our CU Realty program, NWFCU members have unrestricted access to the home listing database real estate agents use, complete with photos.
What is the difference between being pre-qualified and preapproved?
The basics of a pre-qualification
Getting pre-qualified means you receive an estimate from a lender that details how much you can likely borrow, based on information about your income, liabilities and debt. Keep in mind that a pre-qualification is just an estimate, and carries no commitment from the lender.
The basics of being preapproved
Getting preapproved takes it a step further; it means that you have submitted a complete loan application, provided all your salary and credit information and the lender has committed to an exact dollar amount, in writing, to loan you. To submit your application for a free pre-approval, click here.
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