Home Buying 101

Home buying and refinancing can be complex, so we’ve broken it down to make it easier for you.

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Credit Score Chart

Credit

Know your score. A good credit score is important. You may want to check your credit prior to applying for a mortgage loan. If you have any negative marks on your credit history, do the work to repair them before you apply. You can obtain a FREE annual credit report at www.annualcreditreport.com. Credit scores can range from 300 – 850; the higher your score, the more likely you will qualify for a loan.

Prequalification

Prequalification

Our mortgage loan officers can help you get prequalified for mortgage financing. This process provides an initial evaluation of your financial status based on your income, assets, debts and credit. Prequalification is a valuable tool to have available before you begin shopping for a home. The process is usually completed within three (3) days upon receiving all necessary documentation and is valid for 30 days.

Documentation required for prequalification:

  • Mortgage Application
  • Credit Report
  • Loan Amount
  • Income (or two years’ tax returns if self-employed)
  • Determination of mortgage product desired

Approval

Approval

Mortgage approvals are subject to a completed analysis of your financial condition. In addition to the information outlined in the prequalification process, we are required to obtain verification of employment, verification of income, verification of deposit and appraised value of property. It may also include termite, well and septic inspections where applicable.

Closing Costs

Closing Costs

Along with the purchase price of a home, it is important that you be aware of the costs associated with obtaining a mortgage. You will need money for the down payment.  Nebraska Energy Federal Credit Union offers financing of up to 80% of the purchase price or appraised value, whichever is less.  Financing over 80% is available to qualified borrowers and requires Private Mortgage Insurance (PMI).  The maximum with PMI is 95%.  In addition to your down payment, you will also be required to pay closing costs.

These often may include but are not limited to:

  • Origination Fee
  • Appraisal Fee
  • Doc Prep Fee
  • Attorney Fee
  • Termite Inspection
  • Credit Report
  • Flood Certification
  • Filing Fees
  • Title Insurance
  • Verification of Employment