Centris Mortgage

Mortgage Frequently Asked Questions

What is a mortgage?

A mortgage loan is used to buy a home or to borrow money against the value of a home you already own. A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest.

How much of a mortgage payment can I afford?

There are many factors that go into determining how much of a mortgage payment you can afford comfortably — your household income, monthly expenses and debt owed. You can use our free mortgage calculator to help you calculate how much you can afford, or you can talk to one of our mortgage loan experts who can help advise you on how much home you can afford.

How do I get preapproved for a mortgage?

In order to be preapproved for a mortgage loan, the lender needs to verify your income, employment, assets, debt and credit score. To do that, they’ll need documents like your W-2s, paystubs and more. Your credit score plays a key role in deciding whether you get approved for a mortgage and the interest rate you’ll receive. Before applying for a mortgage, check your full credit report to understand your score and fix any inaccuracies.

Is mortgage insurance required?

The requirement of mortgage insurance can vary depending on the lender, the type of mortgage loan and the amount of the down payment. Typically, mortgage insurance is what makes it possible for you to purchase a home with a conventional loan if you are only able to make a down payment that’s less than 20%. It’s what protects the lender against the additional risk that’s associated with low down payment lending.

What are today’s mortgage interest rates?

Mortgage interest rates can change daily, sometimes multiple times a day or even hourly depending on economic factors and market forces. To find out what today’s mortgage interest rates are in your area, contact one of our local mortgage experts.

How much of a mortgage do I qualify for?

To find out how much you qualify for, you’ll need to work with a mortgage lender to go through the pre-qualification process. They will review your application and if you satisfy the general criteria for a mortgage, then they will provide a rough estimate of how much you may borrow. It’s a much shorter process than being approved for a mortgage and often doesn’t require you to verify the information on a mortgage application. Pre-qualification is what can help you start the home-buying process if you don’t know where to start, while pre-approval is best when you know you’re ready to buy a home and want to make an offer. To find out how to start the pre-qualification or pre-approval process, contact one of our mortgage loan experts.

What type of mortgage loans are available?

Mortgage loans aren’t a one-size fits all. At Centris Federal Credit Union we offer conventional loans, FHA loans and VA loans. We also have a My First Home Program available for first-time home buyers and a mortgage program for medical professionals. Contact one of our mortgage experts who can help you find the loan that best fits your needs.

Can I get a mortgage with no down payment?

Down payment requirements vary by loan type and borrower qualifications. At Centris Federal Credit Union, we offer mortgage loans that have as little as a $1,000 down payment and programs that offer 100% purchase financing for first-time home buyers with limited funds for a down payment. To help you determine which mortgage loan option best fits your needs, contact one of our mortgage loan experts who can be there to help you at every step of the home buying journey.

How much do I need for a mortgage down payment?

The amount you need for a down payment on your mortgage depends on the type of loan you’re taking out, your financial situation and the lender’s requirements. At Centris Federal Credit Union, we work with our members to find the best loan that fits their financial needs. We offer mortgage loans that have as little as a $1,000 down payment and programs that offer 100% purchase financing for first-time home buyers. We recommend talking to one of our mortgage experts to learn about the different loan options that are available and what those down payments might look like. We also have a down payment online calculator on our website under the Mortgage Calculators tab that can give you an idea of how much a new home may cost depending on three different down payment options.

Will a down payment affect my mortgage rate?

There are a lot of factors that a lender takes into consideration when it comes to a mortgage interest rate that’s offered — your credit report and score, loan-to-value ratio, repayment term and the amount of a down payment. The size of your down payment can impact your interest rate because it correlates to the level of risk your lender takes on. With a higher down payment amount, it lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer. Meet with one of our mortgage experts to discuss all of your options.