Mortgage Loan Information Thank you for expressing an interest in your Credit Union s Mortgage loan programs. We look forward to being of service to you. Please take time to read over the following information before completing your application. Following these instructions will enable us to provide the best service possible in the processing of your mortgage loan request. APPLICATION PROCESS You may submit your application and supporting documentation in person to the Credit Union Mortgage Department located in the Hampton Branch at 2300 Cunningham Drive, Hampton, VA 23666. The Mortgage Department is open to member from 9:00 am to 5:00 pm Monday thru Friday and can be reached by telephone from 8:00 am to 5:00 pm Monday thru Friday. If it is not convenient to submit your application in person, you may take your application to any of the Credit Union Branch Offices (excluding the Credit Union Service Centers), or mail your application to the Hampton Branch Office, to the attention of the Mortgage Department. Please provide a daytime phone number so that we may contact you as needed. The following information and items should be included with your completed mortgage loan application for a Pre-approval, Purchase, or Refinance: The completed Mortgage Loan Application signed by all borrowers. Each borrower and co-borrower must be a primary member of the Credit Union and provide their member number on the application. The application must be filled out completely, including all assets and debts/liabilities. The application must be completed in ink. Please do not use whiteout. If an error needs to be corrected please X it out and write the correct information beside or below it. Any person who has an ownership interest in the property being financed will be required to go to closing and sign all security documents. Income Verification: Most recent 2 pay stubs and previous 2 years W-2 forms for all borrowers whose income will be used to qualify for the loan. If either borrower is self-employed, or income is based on commissions, please provide the most recent 2 years federal tax returns with all schedules, completed and signed. Most recent 2 months bank statements from primary financial institution (other than BayPort Credit Union). Asset Verification: most recent statements (all pages included). If purchasing a home or land please also provide: Sales Contract for the subject property and the name and phone number of the sellers and real estate agents involved. The Sales Contract must be signed by all parties. Down payment & closing costs must be in a verifiable account. If your down payment and closing costs will be from the sale of a current asset, please provide a copy of the sales contract and/or a copy of the HUD-1 Settlement Statement Check for $400.00 made payable to BayPort Credit Union, Inc. for the appraisal fee. This fee is non-refundable. The Credit Union staff will order the appraisal. Applications cannot be processed until this fee is paid. Occasionally the appraisal fee exceeds this $400.00 due to location of the property or other specifics and once received the Mortgage Dept. Staff will be in touch with you if additional funds are needed to pay for the appraisal If refinancing your home or land please also provide: Deed or Deed of Trust - A copy of the 1st page, signature page and legal description page for the subject property. A copy of the most recent survey if available Mortgage balance statement(s) including mailing address & account number for the current mortgage holder(s) of the subject property. City/county real estate tax assessment for the subject property if not available on-line
Proof of current homeowners insurance coverage, to include the company, agent and amount of coverage on the dwelling Proof of current flood insurance information, if applicable. Check for $400.00 made payable to BayPort Credit Union, Inc. for the appraisal fee. This fee cannot be collected until 3 days after your Good Faith Estimate has been mailed or received at the time of application. At which time the Credit Union staff will order the appraisal. This fee is non-refundable. Occasionally the appraisal fee exceeds this $400.00 due to location of the property or other specifics and once received the Mortgage Dept. Staff will be in touch with you if additional funds are needed to pay for the appraisal. RATE LOCK-IN Locks are available upon request after receipt of a completed loan application and supporting documentation. CLOSING COSTS The closing costs charged by the Credit Union may include an Origination Fee and/or Points. A 1% Origination fee will be charged on all "BayPort Credit Union" Adjustable Rate Mortgage (ARM) loans (loans that will be retained by the Credit Union) Mortgage loans, with the exception of the Construction/Permanent mortgage loan, for which a 1.50% origination fee will be charged. The Origination Fee and/or Points charged on "Long Term Fixed Rate Mortgages" will vary according to the terms offered and interest rate desired. The amount of these fees will be specified at the time of the interest rate "Lock-in". The "Long Term Fixed Rate Mortgages" may be offered for sale on the secondary market, and may not be retained by the Credit Union. The borrower will be responsible for all other closing costs and fees, which may include, but not be limited to, credit report fee, attorneys fees, title examination costs, document preparation/recordation, title insurance premium (mortgagee title insurance is required on all loans,) termite and moisture inspection, survey (if required,) private mortgage insurance, etc. The Credit Union will provide a "Good Faith Estimate" of all anticipated charges within 3 days of receipt of the completed application. This disclosure is only an estimate, and should not be construed as the final closing figures. VA borrowers will be required to pay the applicable Funding Fee. CLOSING REQUIREMENTS A satisfactory inspection certifying the home is free from wood destroying insects and moisture damage, by a State approved exterminator, dated no later than 30 days before closing, is required for all purchases and may be required when refinancing. This statement will not be acceptable if it releases the exterminator from liability. This inspection should not be ordered until after the loan commitment has been issued. If this report reflects any damage or the need for treatment, the repairs and treatment will need to be performed and completed before closing. A satisfactory verification of these measures will need to be provided to the Credit Union to authorize closing. Private Mortgage Insurance ("PMI") will be required on BayPort Credit Union Conventional ARM mortgages when the requested loan amount (LTV) exceeds 85% of the appraised value of the property, or the purchase price amount, whichever is less. All Long Term Fixed Rate Conventional Mortgages will be required to carry PMI if the LTV exceeds 80% of the appraised value of the property, or the purchase price amount, whichever is less. The cost of PMI is based on the payment plan, loan amount and term. A monthly premium is available which will be added to the regular monthly loan payment. A quote for the cost of PMI will be included in the "Good Faith Estimate" provided within 3 days of receipt of the completed loan application. A written request may be submitted for cancellation of the PMI requirement when the unpaid principal balance reaches 80% of the original value of the mortgage, or upon submission of a current appraisal (dated no later than 6 months at the time of the cancellation request) which indicates the unpaid principal balance is 80% or less of the appraised value. The request for cancellation of PMI will be considered if the loan has not experienced any delinquencies. PMI will automatically be cancelled when the LTV is scheduled to reach 78% of the original value, provided the loan is current. Value is defined as the lesser of the purchase price of the property or its appraised value. Lenders Title Insurance is required on all mortgages. Owners Title Insurance is available but not required by the Credit Union. The closing attorney should be notified at the time of the loan commitment if Owners Title Insurance will be purchased so those arrangements can be made with the title company prior to closing. The premiums for title insurance (Mortgagee and Owners) are one-time fees and are included in the borrowers closing costs. The Credit Union owns an interest in BayPort Title LLC, which provides title insurance services. The closing attorney you choose may request BayPort Title, LLC, for the title exam and insurance services. You are not required to use BayPort Title, LLC as a condition for settlement of your loan.
A three-business day "Right of Rescission" period will be required on mortgage loans, which are a refinance of an existing mortgage on a primary residence. The Right of Rescission period is a federal regulation applicable to all federally insured lending institutions. This rescission period allows anyone with ownership interest in the home to cancel the mortgage loan before the loan is funded. Funds will not be disbursed until expiration of the rescission period, the Deed of Trust is recorded and applicable forms are signed by all parties stating the loan has not been cancelled. Millard C. White, Attorney, is the Credit Union s legal counsel and is available to close your mortgage if the subject property is located within the State of Virginia. His address is 10 Sweetbriar Drive, Newport News, VA 23606, and phone number is (757) 595-3368. PAYMENTS Mortgage payments will be due on the first of each month. BayPort mortgage payments may be scheduled for automatic transfer from your Credit Union savings or checking account on the due date, or by your own transfer from your Credit Union savings or checking account via the Audio Response System, "STAR", or ebranch. An ACH form will be provided at closing. Mortgage payments on loans that are sold must be made to the new mortgage holder. A notice of the transfer of your mortgage loan will be provided by the Credit Union in advance of the loan sale. Information regarding your new mortgage holder, effective date of transfer, and where payments are to be made will be included in the transfer notice. Arrangements for automatic draft of your mortgage payment from your Credit Union checking or savings account may be available, and the new mortgage holder should be contacted for this arrangement. The Credit Union cannot accept mortgage payments on loans that have been sold. A 15-day "grace period" will be allowed for timely remittance of the mortgage payment. Payments received after the grace period will incur a late fee. A late fee of 5% of the principal and interest payment will apply on mortgaged properties in the State of Virginia. Mortgage properties in the State of North Carolina will incur a late fee of 4% of the principal and interest payment. (VA loans will include a late fee of 4%) A $5.00 share balance is required to be maintained as long as the mortgage is outstanding with the Credit Union. All borrowers and co-borrowers must each have a primary account in their name at the time the loan application is submitted. Each savings account must be in good standing and maintain the minimum balance of at least $5.00. If mortgage payments will be set up for automatic transfer, the account balance must be such that the transfer will not reduce the savings balance below the minimum requirement of $5.00. Overdraft options will not be exercised for mortgage payments. INSURANCE AND TAXES The Credit Union offers escrow accounts for hazard insurance* premiums, flood insurance** premiums, private mortgage insurance and real estate taxes. You may elect to have these expenses maintained in an escrow account with the Credit Union. The Credit Union will be responsible for timely remittance of these bills. If PMI is required on your loan, escrow accounts will be mandatory for hazard and flood insurance premiums, real estate taxes, as well as the PMI premiums. The borrowers will be responsible for any shortage of funds that may occur. An initial escrow account statement will be provided within 45 days of closing, and an annual escrow account statement will be provided on each mortgage by the mortgage servicing department. If you are not required to carry PMI, escrow accounts for hazard and/or flood insurance premiums, and real estate taxes, are optional. Should you elect not to establish an escrow account with the Credit Union, you will be responsible for paying your insurance premiums and taxes when they are due. Failure to maintain adequate insurance coverage or failure to pay real estate taxes on a timely basis is cause for foreclosure. You will also be required to notify the Credit Union immediately in the event you change insurance companies. It is critical the insurance not be allowed to lapse under any circumstances. *Hazard Insurance: Fire and windstorm insurance with extended coverage is required on all mortgage loans where a dwelling is involved as security for the loan. **Flood Insurance: If the mortgaged property is located in a Special Flood Hazard Area as identified by the National Flood Insurance Administration (Zone A or V), flood insurance will be required as a condition of the loan. As mandated by law and Credit Union policy, the Credit Union will only lend in these designated areas if flood insurance is acquired and maintained. The Credit Union will perform a flood zone determination at the time of the loan approval. The results of this determination will be included in the loan commitment. GENERAL INFORMATION REGARDING LENDING POLICIES AND PROCEDURES The Credit Union s primary purpose in mortgage lending is to assist our members with the financing of their primary residence, vacation home, or purchase of land. The Credit Union also offers a variety of second mortgage programs. Equity programs presently available are the "Home Equity Line of Credit", "Fast Equity", "Second Mortgages - ARM & Fixed" and "MAXTAX" loan. For further information on these second mortgage programs, please contact the Consumer Loan Department at (757) 928-8850.
Credit Union currently offers Conventional and VA mortgage loans. The Credit Union does not presently offer VHDA mortgage programs. For Conventional loans on home purchases, the borrower may finance up to 95% of the appraised value or sales price, whichever is less, of the home they are purchasing. For Double Wide Mobile Homes the borrower may finance up to 90% of the appraised value or sale price, whichever is less of the home they are purchasing. (Must be primary resident). The Credit Union will require verification of down payment funds and closing costs necessary for the closing of any loan. For conventional loans for home refinances the borrower may borrow up to 95% of the subject property s appraised value for rate/term refinances, 85% on cash-out refinances on ARM and 80% cash-out fixed rate refinances. Private mortgage insurance coverage will be required on all loans over 85% (80% for long term fixed rate) of the value of the property (appraised value or sales price whichever is less). For VA loans, borrower may finance up to 100% of the appraised value or sales price, whichever is less, of the home they are purchasing plus the VA Funding Fee as long as entitlement provides 25% guaranty. Borrower must be an eligible veteran, reservist/guard or active duty military and provide their Certificate of Eligibility along with their DD214 Record of Service (Discharge papers) or Statement of Active Service. A $400.00 appraisal fee will be required. Purchase contracts must include the Amendatory Clause. VA Loan terms are 30, 20 and 15 year fixed rate loans. All policies, procedures and required documentation as specified by the VA will be adhered to for all VA loans. VA loans will be sold immediately after loan closing. Our mortgage documents include a due on sale clause which states that any unauthorized transfer or conveyance of ownership of the property will be considered a default of the mortgage, requiring payment in full of the unpaid mortgage balance. The Credit Union s Real Estate Approval Committee must approve any assumption of the loan. Buyers assuming the mortgage must be eligible for membership in the Credit Union and qualify according to the Credit Union s current lending standards. The rate of interest will be the current lending rate, not the original rate of the loan. The original borrowers will not be released from liability of the mortgage should the assumption be approved. The Credit Union extends mortgage loans on properties located within the states of Virginia and North Carolina. All applications to purchase a home or lot must be accompanied by a signed Sales Contract. The Credit Union will not lend more than the sales price of the home regardless of the home s fair market value. Any mortgage closed by a title company or an attorney other than the Credit Union s attorney, Millard White, will require a review and approval of the closing documents prior to authorization for closing. This requirement is a matter of protection of the Credit Union's interest in the mortgage transaction. If the structure being financed is not completed at the time the appraisal is made, the Credit Union will require an inspection by the original Appraiser prior to closing to verify its completion and to submit a satisfactory inspection report to the Credit Union. Any fee for this inspection report will be the responsibility of the borrower(s). If improvements are being made to the subject property with the proceeds of the loan, the Credit Union will require that Mechanic s Lien waivers be signed and submitted by the contractor or sub-contractors upon completion of their work and receipt of payment. These lien waivers will be provided to the closing attorney or title company. The Credit Union may hold $2,000.00 of the loan proceeds until the final waiver is completed and returned to the Credit Union Mortgage Department. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract,) all or part of the applicant s income being derived from any public assistance program, or the applicant having in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission, Washington, DC, Regional Office Room 810, 8 th Floor, Bicentennial Building, 600 E. Street, NW, Washington, DC 20580.
MORTGAGE DEPT. STAFF Please feel free to contact any of the Mortgage Loan Department staff if you have any questions regarding the application or procedures. The Mortgage Department staff are: These staff members are located at the Credit Union s Hampton Branch: Loan Application/Origination & Processing: Don Maderios (757) 896-8762 Tim Branson (757) 896-8765 Patsy Burgess (757) 896-8761 Angela Vest (757) 896-8766 Jacola Greene (757) 896-8763 Jennifer Michalak (757) 928-7823 General Information: April Royster (757) 896-8769 Loan Closing: Katie Noble (757) 896-8760 Karin Yearwood (757) 896-8764 Christine Foy (757) 896-8772 Mortgage Underwriter: Madoline Wallace (757) 928-8850 x8759 Mortgage Supervisor: Jennifer Taylor (757) 896-8771 Vice President, Mortgage Lending: Marissa Lovingood (757) 896-8767 Toll free number for use outside the Newport News/Hampton Area: 800-928-8801 (ask for the staff member to be contacted, or enter the last four digits of their extension) Shipyard Employees may dial (757) 328-8800 and the operator will connect you with the Mortgage Department.
Member Please complete and return this informational form to the Mortgage Dept. as soon as most of these questions can be answered TO: MORTGAGE DEPT. FROM: RE: Acct. No. 1. I (We) do do not wish to have an escrow account set up with the Credit Union for the purpose of paying taxes and insurance. 2. CLOSING: Millard White, the Credit Union s attorney, to close loan? Yes No Please Circle Shipbuilders Title, LLC, for Loan Policy Yes No Shipbuilders Title, LLC, for Owners Policy Yes No If you prefer another attorney or title company for closing: Name of Attorney/title company: Address: e-mail address if preferred: Phone No.: Fax No.: 3. FIRE/HOMEOWNERS INSURANCE COMPANY: Agent: Phone No.: Insurance Company: Premium Amount: $ Date Next Due: 4. FLOOD INSURANCE COMPANY: Agent: Phone No.: Insurance Company: Premium Amount: $ Date Next Due: 5. TERMITE AND MOISTURE INSPECTION TO BE PROVIDED BY: Name of Company: Representative: Phone No.: Mailing Address: Date of Inspection, if known: I have received the information sheet concerning mortgage loans with the BayPort Credit Union: Borrower Date Co-Borrower Date