1. When you already own your own house, a value must be established. This is done with an appraisal. The appraisal must be done by a certified and licensed real estate appraiser. We accept only a standard FHLMC/FNMA report. The Credit Union usually orders the report.

2. Loan-to-value ratio: this ratio is computed by taking the proposed loan amount and dividing it by the appraisal amount. The ratio cannot exceed 90% as that is the most we can loan.

3. 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%.

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

5. 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.

6. 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 documents as the Credit Union does not furnish any of the standard closing documents.

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

Please call or come by the Credit Union to begin the loan application process. There are several disclosures that must be given out at the time of application, as well as several documents that need to be signed. Give us a call beforehand, and we will be able to speed things along even quicker.