The purchase of your new home is one of the largest investments in your entire lifetime and that is why it is so important to work with a lender that is looking out for your best interests, not their profit.
When purchasing either your first or a new home, let the loan officers at Heritage South help you.
The credit union offers 15 year variable and fixed rate mortgages. We also offer a 30 year variable rate mortgage that is fixed for each 5 year period and can not go up more than 2% at the end of 5 years or 4% throughout the life of the loan. The term for land purchase is 12 years maximum financing.
Heritage South Credit Union can help you find answers to all of these questions:
- How much home can I afford?
- Should I refinance?
- Should I rent or buy?
- How much mortgage might I qualify for?
Find the answers to other home financing questions by clicking here.
To speed up the application process, come by the credit union and bring the following items with you:
- current pay stubs
- a sales contract signed by the buyer and the seller
- a copy of the legal description of the property
- a survey, if available
Heritage South does not offer "lock in" rates. Your rate will be applicable on the day of closing.
Normal processing time is 30 days.
Here are the steps of the mortgage process:
- Review of application and pre-qualification.
- An appraisal of the property will be done by a licensed appraiser who is approved by the credit union's board of directors. An appraisal is a professional's estimated value of the property based on inspection and sampling of comparables or "comps." The average cost of an appraisal is between $300 and $500.
- Once the appraisal is done, the loan value will be determined and the amount of the down payment will be determined. The loan to value is the amount of the loan as a percentage of the total value as determined by the appraisal. Normal financing is 80% of the appraisal value up to 95% of the appraisal value depending on qualifications.
- A survey is required at this point provided by whomever stated in the sales contract.
- If there is no termite bond currently on the property, an inspection and bond policy shall be ordered. The sales contract will determine who will be responsible for this payment.
- Once all of the above has been submitted, the title search and policy will be ordered. If there is no problem with the title search, a closing date will be set. The closing will be held at Heritage South Credit Union and will include the buyer, seller, a loan officer, and the credit union attorney.**
- Proof of homeowners insurance will be required at closing.
Refinancing your current home
- Heritage South requires a payoff from your current mortgage. This must be requested by the member.
- After closing the loan, the funds cannot be dispursed until 3 days later, this is the law.
* Modular homes can be financed as real estate loans as long as they are permenantly affixed to the property which means it is blocked or bricked on the owner's land. Underpinned modular homes will NOT be considered. Modular homes and land are limited to 80% of appraisal value.
** Your loan officer will go over any additional fees or information required by you depending on your loan type.
Let the loan officers at Heritage South help you with your mortgage today. For more information about our mortgages, you can visit one of our two convenient locations, call us at 256/245.4776.