If you are purchasing an existing house, you should fill out a sales contract. If a realtor is involved, this is usually done anyway. A contract should list additional items, such as: drapes, ceiling fans, any agreed upon furniture, any repairs or installations, any closing costs paid by seller, seller furnishing an owner's title policy; and other conditions, such as: "subject to buyers obtaining up to a 90% mortgage through EPB Employees Credit Union." Since earnest money is usually paid by the buyer to the seller, a contract becomes even more important.

Certain qualifications must be met: payment-to-income and overall debt ratios. The proposed monthly payment is compared to your total gross income. The ratio should not exceed 28%. The overall debt ratio takes into consideration all monthly payments, including the proposed house payment and compares it to total gross income. This ratio should not exceed 36%.

Loan-to-value ratio: this ratio is computed by taking the proposed loan amount and dividing it by the appraisal amount or the sales price, whichever is less. Our ratio cannot exceed 90% as that is the most we can loan.

Employment is verified in writing. If self-employed, copies of the last two years tax returns are needed.

The credit report must be acceptable. A "Beacon Score" of 624 or less is unacceptable. Any bankruptcy, unpaid collections or slow or late payments will also be reason for a decline.

The appraisal must be done by any certified and licensed real estate appraiser. We accept only a standard FHLMC/FNMA report. The Credit Union usually orders the report.

Once the credit report, appraisal report, and other application data is in and approved, title work is ordered through a local title company. The Credit Union usually places this order; however, the borrower (or seller) can select which company to use. Our only requirement is that the company be able to prepare all closing papers as the Credit Union does not furnish any of the standard closing documents.

Altogether, the loan application to closing process takes about 30 days.