Mortgage Loans FAQs
Member First Mortgage (MFM) is a Credit Union Service Organization (CUSO), wholly owned by 12 leading Credit Unions. We are a full service mortgage lender with an experienced staff, offering expertise in all aspects of mortgage lending, from purchase to refinance to construction. Member First Mortgage partners with Credit Unions across the country to provide mortgage services to their members.
We pride ourselves on our professionalism and personal service, home buyers and homeowners will experience the utmost attention to detail and service in every transaction. Our dedicated team of origination professionals will work directly with you from application to closing, delivering the seamless level of service you expect and deserve. Member service is a priority at Member First Mortgage, our licensed lending specialists are committed to helping you achieve your dream of home ownership.
All mortgage programs feature basic credit requirements, including credit score minimums. Your credit score, as well as the information on your credit report, are key factors in determining whether you'll be able to get a mortgage. Errors on your credit report can affect your score, so it's important to check your credit report and correct any errors before applying for a loan. Credit score is only one component in a mortgage lenders decision, other factors include: the amount of debt you already have, your total assets, your current income, how much you have in savings, and more. Consumer Financial Protection Bureau (CFPB)
When applying for a mortgage loan you'll need to gather a variety of documentation. Your Mortgage Consultant will provide you with specific information on what items are required, but this may include:
• Copy of driver’s license for each borrower
• Most recent pay stub showing year-to-date (at least 30 days) earnings
• W2's- 2 years
• Most recent asset statements covering two full month(s)
• Complete signed & dated Federal Tax Return including all schedules- 2 years
• Most recent 401K/Retirement statement- all pages
• Copy of last mortgage statement (for refinances)
• Purchase agreement signed by all parties (for home purchase transactions)
An Appraisal is a written estimate of the value of a property, prepared by a qualified appraiser. Mortgage lenders will always require a property appraisal before approving a home loan.
The most popular method of appraising a home is the “sales comparison” method. It involves examining recent home sales in the area (often called “comparables” or “comps”) and selecting the ones most like the property being appraised (the “subject property”). The subject property’s condition, construction quality and features are compared to the comps, and its value is adjusted up or down.
There is also the “income” approach which is used primarily when valuing an investment or rental property. The appraiser takes the rental income of either the subject property (if rented) or similar comps, and calculates the price that would provide the rate of return a typical investor would require for a similar property.
If you have an escrow account, your monthly mortgage payment will consist of principal, interest, taxes and insurance (P.I.T.I). Using an escrow account, Member First Mortgage will pay the taxes and insurance on your behalf each month.
If you don't have an escrow account, you will be responsible for paying your own property taxes and insurance.