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If you're thinking about buying a home, get started with this general mortgage information, including definitions of mortgage terms and helpful tips from Sunward loan officers. Then, call us at 505.237.7161 or toll-free at 800.947.5328, extension 7161, or email us at mortgages@gosunward.org to discuss your specific needs.
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No, you do not need a 20% down payment. With a good credit history, you can put down as little as 5%. Qualified first-time home buyers have the option of putting down as little as 3%.
Sunward can lend 80% on a first fixed-rate mortgage and finance the rest with an adjustable rate second mortgage. With this loan structuring, you avoid paying Private Mortgage Insurance (PMI).
Yes, Sunward offers fixed rate mortgages with term options that fit your budget.
You may choose to pay points to lower your interest rate, but you won’t pay private mortgage insurance (PMI). Instead, we can lend 80% on a first, fixed rate mortgage and finance the rest, up to 95%, with an adjustable rate second mortgage.
Your fixed rate loan – from application to loan origination and beyond – is serviced by Sunward. When you make a payment or have a question, you’ll talk to the professional, friendly staff at Sunward.
Beyond the amount you’re borrowing, the biggest factors impacting the cost of a fixed rate mortgage are your rate and closing costs. You can’t simply compare one financial institution’s fixed rates against another’s; the advertised rate could include the cost of points, which lower the rate but increase your closing costs.
If you’ve gotten loan estimates from more than one lender, compare the rates and fees, including closing costs, on each document. If you expect to stay in your home (without refinancing) for a long time, it might make sense to lower your rate by paying points.
- Sunward Loan Officer
Apply online, in person, or by phone. We strongly recommend that first-time homebuyers meet with a home loan officer. Call 505.237.7161 or toll-free at 800.947.5328, ext. 7161 or email mortgages@gosunward.org.
To determine how much you can borrow, we look at your credit score, debt-to-income ratio, and down payment.
We lend up to 95% of the purchase price or the appraised value of the home (whichever is lower) if you have owned a home before. For first-time homebuyers, we lend up to 97%. Qualified first-time homebuyers have the option of a down payment as low as 3%.
To determine your debt-to-income ratio, we look at your income and monthly obligations, such as credit card debt, vehicle loans, and student debt. See a list of documents we’ll need to verify your income.
- Sunward Loan Officer
- Sunward Loan Officer
When you finalize your mortgage, you pay the down payment, lender’s fees (including points for a fixed rate mortgage and origination fees), and third-party fees. Get specifics about your potential closing costs with a personalized quote.
The earnest money you paid when you signed a purchase agreement is applied to your down payment. Closing costs are usually paid by cashier’s check.
- Sunward Loan Officer
- Sunward Loan Officer
- Sunward Loan Officer
Make an appointment with a loan officer to discuss your specific situation and learn the differences between Sunward's fixed rate mortgages and our 5/5, 7/1, and 15/15 adjustable rate mortgages (ARMs). Call us at 505.237.7161 or toll-free at 800.947.5328, ext. 7161, or email us at mortgages@gosunward.org.
With a fixed rate, your rate and principal payment won’t change for the life of the loan, but closing costs are higher. With the 5/5 ARM, rates and payments are locked in for five-year periods. With the 7/1 ARM, rates and payments are locked in for a seven-year period. Sunward’s 15/15 ARM locks in a rate lower than a typical fixed rate mortgage for the first 15 years. All of our ARMs combine the low rate of an ARM with the stability of a fixed rate mortgage.
Most people refinance or sell their home and buy another one within five to seven years, so high closing costs can add up quickly. Sunward’s ARMs offer competitively low closing costs.
In the following common situations, a Sunward ARM lets members take advantage of our competitive interest rates, fixed rates for the initial loan period, low closing costs, and rate caps:
- Sunward Loan Officer
- Sunward Loan Officer
After you decide which mortgage product works best for you, it’s time to apply for your loan.
Don’t worry if we call to get more information; this is normal. Application information is updated throughout the entire process.
The mortgage loan processor reviews your application to make sure that it paints an accurate picture of your financial situation and submits your application to the underwriter.
- Sunward Loan Officer
- Sunward Loan Officer
- Sunward Loan Officer
Use this checklist to make sure you have everything you need.
An escrow account is established when you originate a first mortgage loan in which money for insurance and tax bills are held by Sunward. When those bills are due, we’ll pay them on your behalf. Here’s how it works:
Most members find it helpful to have Sunward escrow these costs. There’s no worry about missing a payment or paying a large bill that is only due once or twice a year. And members earn interest on the funds held in their escrow accounts.
If you prefer to manage these bills on your own, you may choose to do so if you meet certain qualifications. Contact us for more details. Call us at 505.237.7161 or toll-free at 800.947.5328, ext. 7161, or email us at mortgages@gosunward.org.
- Sunward Loan Officer
The purpose of an appraisal is to ensure that we’re making a loan based on the true, current market value of the home or the purchase price, whichever is lower. An appraiser looks at similar properties that have sold recently in the area and makes adjustments for specific features or upgrades of the home being appraised.
If the appraised value is lower than the purchase price, generally the seller will renegotiate the price, or the buyer could pay more than the appraised amount (making a larger down payment) or cancel the purchase agreement.
- Sunward Loan Officer
Mortgage Disclosure: Maximum loan-to-value is 80% for all fixed rate mortgages. Rates subject to change; check with Sunward for current rates. If loan does not close, fees incurred will be charged to the member. Available rate based on credit history. Not everyone will qualify for lowest rate. All loans subject to credit approval. Contact Sunward for details.
5/5 Adjustable Rate Mortgage Disclosure: Rate for the remaining term adjusts every five years. Each adjustment is capped at 2%, and the rate will never increase more than 5% above the origination rate. Rate is based on the then-current index plus margin, rounded to the nearest eighth of a percentage point, and is subject to the floor rate.
7/1 Adjustable Rate Mortgage Disclosure: Rate for the remaining term adjusts annually after the initial seven-year period. The rate cannot increase or decrease by more than 3.5% at the first adjustment, or by more than 2% at each annual adjustment after that. Rate is based on the then-current index plus margin, rounded to the nearest eighth of a percentage point, and is subject to the floor rate.
15/15 Adjustable Rate Mortgage Disclosure: Rate for the remaining term adjusts once after the initial 15-year period and is capped at 6% above the loan origination rate. Rate is based on the then-current index plus margin, rounded to the nearest eighth of a percentage point, and is subject to the floor rate.