While the home buying process may feel overwhelming to first-time home buyers, CCCU has a team of dedicated mortgage experts ready to help you every step of the way. Here's a simplified version of what you can expect:
If you have more in-depth questions about what you can expect during your home-buying journey, let's talk.
Homeownership is a dream come true! We know you've worked hard to get this close, and a First-time Home Buyer Loan from CCCU could help you get over the finish line.
If you’ve never had a mortgage or haven’t owned a home in the past three years, you may qualify as a first-time home buyer.
Achieve your dream of homeownership with the help of these additional tools and support options:
The decision to enter the housing market is an exciting one. That said, buying your first home is likely the largest purchase of your life, and we want your first impression of the experience to be a good one. Here are just a few tips to help get you ready:
You've got mortgage dreams and we've got mortgage expertise. Schedule a free consultation with our local team today.
Enjoy browsing our collection of recent articles relating to purchasing your first home, mortgage options, and more.
Yes, our CCCU First-Time Homebuyer Savings Account is a great tool to help you get started.
Depositors who are Oregon residents and have not owned a home in the last three years qualify to receive an Oregon state tax subtraction of up to $5,000 for a single filer, and $10,000 for joint filers per year. Plus, close your home loan through CCCU and get a FREE appraisal valued up to $700!
Learn more about this account and its benefits.
CCCU's Realtor Network gives you access to trusted realtors in the Portland area. As we work with realtors, we will update our website to ensure that you're getting the quality products and services you deserve, from mortgage pre-approval to your closing date.
If you've ever purchased a home before, you may already be familiar with the benefits and terms of title insurance. But if this is your first home loan or you are refinancing, you may be wondering why you need another insurance policy.
The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and especially your mortgage lender, want to make sure the property is indeed yours: That no individual or government entity has any right, lien, claim, or encumbrance on your property.
The function of a title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer are fully protected.
Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, and others who have an interest in real estate transfer. Title companies typically issue two types of title policies: 1) Owner's Policy. This policy covers you, the homebuyer.2) Lender's Policy. This policy covers the lending institution over the life of the loan.
Both types of policies are issued at the time of closing for a one-time premium, if the loan is a purchase. If you are refinancing your home, you probably already have an owner's policy that was issued when you purchased the property, so we'll only require that a lender's policy be issued.
Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or, more likely, the information contained in the company's own title plant.
After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.
The fact that title companies try to eliminate risks before they develop makes title insurance significantly different from other types of insurance. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen future event, say a fire, accident or theft. On the other hand, the purpose of title insurance is to eliminate risks and prevent losses caused by defects in title that may have happened in the past.
This risk elimination has benefits to both the homebuyer and the title company. It minimizes the chances that adverse claims might be raised, thereby reducing the number of claims that have to be defended or satisfied. This keeps costs down for the title company and the premiums low for the homebuyer.
Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are slim indeed.
Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. Low down payment mortgages are becoming more and more popular, and by purchasing mortgage insurance, lenders are comfortable with very low or nonexistent down payments. It also provides you with the ability to buy a more expensive home than might be possible if a 20% down payment were required.
The mortgage insurance premium is based on loan-to-value ratio, type of loan, and amount of coverage required by the lender. Usually, the premium is included in your monthly payment and one to two months of the premium are collected as a required advance at closing.
For single family residences, it may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount - below 75% to 80% of the property value. Recent federal legislation requires automatic termination of mortgage insurance for many borrowers when their loan balance has been amortized down to 78% of the original property value.
CCCU offers a team of mortgage experts that are ready to help you from the beginning of the application through closing on your new home. Meet our mortgage team or call 503.963.6666 to get more information on a mortgage loan product.
A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. These fees vary from state to state and also from lender to lender. Any lender or agent should be able to give you an estimate of their fees, but it is more difficult to tell which lenders have done their homework and are providing a complete and accurate estimate. We take quotes very seriously and pride ourselves on offering the best possible loan for each and every scenario!
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 registration fees, title insurance fees, and flood certification 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.
Typically, you'll see some minor variances in third party fees from lender to lender since a lender may have negotiated a special charge from a provider they use often or chooses a provider that offers nationwide coverage at a flat rate. You may also see that some lenders absorb minor third party fees, such as the flood certification fee, the tax service fee, or the credit report fee.
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.
Fees such as origination fees and discount points, document preparation fees, loan processing fees and underwriting fees 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.
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 on 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 through June 30 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 for tax and/or insurance payments 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.
If your loan requires mortgage insurance, up to two months of the mortgage insurance will be collected at closing. Whether or not you must purchase mortgage insurance depends on the size of the down payment you make.
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.
Here is a list of some of the things that will make it easier to complete your loan application when you're applying to purchase a home.
Here is a list of some of the things you may need to apply to refinance your current mortgage.
Based upon the type of refinance you are doing, some, or even most of the items on this checklist may not be necessary.
The interest rate market is subject to change without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock period expires.
A lock is an agreement between the borrower and the lender and specifies the number of days for which a loan's interest rate and points are guaranteed. Should interest rates rise during that period, we are obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the lock.
When Can I Lock?
It is your sole responsibility to inform your Loan Officer when you are ready to lock in your loan rate.
Although fairly uncommon, there are instances where a fee is required, such as on an extended lock.
We offer a wide variety of lock-in periods. 15, 30, 45 and 60 day locks are most common, but extended locks are also available, if needed. Your loan must close and disburse within this number of days from the day your lock is confirmed by us.
Interest rates change often and may be subject to change at any time without notice. Your loan will be subject to interest rate changes until the interest rate is locked in and confirmed by your Loan Officer.
Once we confirm your lock, your loan is committed into a secondary market transaction. Therefore, any changes to the lock commitment due to extending the lock or changing loan terms may require additional fees. If your loan is not approved or does not close by the date specified for any reason, the locked in rate will be subject to change and certain fees may apply or be forfeited.
Membership eligibility required. All loans subject to credit approval. Rates based on creditworthiness, purchase price, and down payment amount; include a 1% loan fee; are based on purchase of primary residence; are subject to change without notice. Subtraction contribution limits are set by the Oregon Department of Revenue, currently not to exceed $5,000 for an account holder that files an individual tax return and $10,000 for joint account holders that file a joint return and subject to change by the Oregon Department of Revenue. Account holder must be an Oregon resident and home purchase must be in Oregon. Deposits to an Oregon First-Time Home Buyer Savings Account can be made up to 10 years or until the account holder(s) purchase a house, whatever comes first. There is a maximum subtraction of $50,000. Please consult your tax advisor or the Oregon Department of Revenue (HB 4007) for a complete list of rules governing this account and the qualification that determine the applicable tax deductions. The credit union is not responsible or liable for: (a) Determining or ensuring that an account satisfies the requirement to be a First-Time Home Buyer Savings account; (b) Determining or ensuring that the funds in a First-Time Home Buyer Savings account are used for eligible costs; (c) Reporting or remitting taxes or penalties related to the use of a First-time Home Buyer Savings account.
 Information and interactive calculators are made available as self-help tools for independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regard to individual circumstances. All examples are hypothetical and are for illustrative purposes. Seek personalized advice from qualified professionals regarding all personal finance issues. Actual rate, payment and costs could be higher. Get an official loan estimate before choosing a loan. Contact credit union for more details.
We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.