The three most important things that we evaluate for a home loan are:
Credit History
We want to give you the best possible chance of success when taking on a mortgage for a new home. Credit is an extremely important part of assessing this success. We need to see a good credit score - typically higher than 620 is needed – but, we always say there’s “more than the score”. Usually we want to see a good, on time credit history from at least the last 12 months.
If you are not “credit ready”, then we want to get you ready! CSE offers products and services that could help build or repair credit. We’ve helped hundreds of people over the years improve their credit and get positioned for home ownership.
Down payment
Most mortgage loan programs require a down payment (VA loans do offer our eligible veterans 100% financing). The FHA loan requires only 3.5% of the purchase price for down payment, while conventional mortgages typically require between 5% – 20%. We will also want to view bank statements to verify that sufficient down payment and closing cost funds are available. You may be able to borrow from your 401(k) or IRA. Eligible family members can contribute a “gift” for down payment and closing costs; be sure to speak in detail with your loan officer about how this works.
Income
Income and job stability are important. For mortgage loans, we evaluate your current income plus your income over the past two years. If you have not been on your current job for at least two years, alternatives such as schooling or training are looked upon as positives, as is moving to a newer, higher income job.
Use our Mortgage Calculator to see how much home you may be able to afford.
CSE has options for getting members into home loans that work best for them. No one person is the same, and we keep that in mind when making mortgages for our members. Whether you’re trading up or downsizing, we have options for financing your next home. Our mortgage options are listed below.
Use our Mortgage Calculator to see how much home you may be able to afford.
There are multiple reasons you may want to refinance your home such as: lower interest rates, lower payments, or money for home improvements. You can rest a little easier by refinancing your mortgage to free up some extra cash. Our mortgage experts will help you navigate the waters of a mortgage refinance, and we have some excellent options to get you on the right path.
We'll try to help you answer two fundamental questions:
- Can you refinance based on your home's equity, appraised value, income and credit profile?
- Should you refinance? Will there be a sufficient interest or payment savings to make it worthwhile for you?
It's important to know if refinancing will benefit you, and put you in the best option available. Sometimes a better alternative of having money for home expenses is a Home Equity Loan or Line of Credit.
Conventional Refinance:
- Often a very good refinance option
- Can offer lower interest rates
FHA Streamline Refinance:
- May not need an appraisal
- allows for an unlimited loan-to-value ratio
VA Interest Rate Reduction Loan (IRRL):
- No appraisal or credit underwriting package is required when applying for an IRRRL.
- An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by building costs into the new interest rate
Refinance Appointment
At the initial appointment, we will order a credit report so that we may determine your eligibility for mortgage loan programs. Also, please come prepared with the following:
- 30 Days or most recent Paystub
- 2 Years of Annual Tax Returns and W-2’s
- 2 Months Most Recent Bank Statements to verify down payment as needed
If Applicable:
- Divorce/Separation Agreement
- Bankruptcy
- Child Support
- Social Security Award Letter
- Pension Award Letter
- Copy of Diploma (if employed less than 2 years)
Note: For your convenience, we can offer to receive these via email or fax.