Loans

Please go over the following checklist in advance of your loan meeting with Penn South Federal Credit Union personnel.

Be advised that if you do not come to your loan appointment fully prepared; we will not initiate loan processing until all of the required documents have been received and all of the required payments and deposits have been made.

Non-payment of the fees or deposit(s) will delay loan processing and cause you to lose your place in the queue.

Mortgage loan processing typically takes 5-6 weeks, so any delay may critically affect your timeline.

 

DOCUMENTS DUE AT INITIAL LOAN APPOINTMENT: INCOME & EXPENSE VERIFICATION DOCUMENTS

Please bring XEROX COPIES (that we can keep), no staples please, of all applicable items from the list below:

  • State or Government issued ID (for all persons listed on the offer sheet; if more than one person is listed, BOTH must attend the meeting, participate in the loan application, and provide requested documents/xeroxes.)
  • The apartment payment breakdown from Carmen ([this is the document with yellow highlighting on it but] just bring the whole folder given to you by Carmen)
  • 4-5 months of bank statements
  • Corroboration of all your monthly or annually recurring expenses (all of your most current statements for): credit cards, utilities (rent, electric, cable, phone, internet etc.‎), home owner’s and car insurance, and any pre-existing loans (such as mortgages on other properties, student, or car loans).
  • If you are a co-signer on another loan, we need the paperwork on that too.
  • We will also need copies of the last 2 years of Federal (form 1040) tax returns and/or copies of your last 4 or 5 Paystubs.
  • If you are a pre-existing homeowner or currently mortgaging a property please provide us with an explanation of your intent for that property financially (more specifically, will you be selling, renting to tenants, or maintaining the property as a second residence).
  • If you have recently become employed or received a salary increase you may want to provide us with a letter from your employer that forecasts your new annual salary.
  • If you have additional, non-taxable income (such as child support or non-taxable Social Security income) please disclose those amounts and provide corroborating documentation.

 

IMPORTANT NOTE: we do not accommodate requests to xerox documents on-site; you are expected to come to your meeting fully prepared with the aforementioned xeroxes.

Additionally, we do not return the xeroxes or original documents furnished by loan applicants.

 

KEEP IN MIND: When in doubt, BRING MORE paperwork, documents; better to have excess than not have enough!

 

PAYMENTS DUE AT INITIAL LOAN APPOINTMENT:

There are fees and deposits associated with opening an account and initiating a mortgage loan application.

There will be additional fees should you require a co-signer. Should financing be approved, there will also be closing costs (to be determined after processing).

Please bring the appropriate payment for your type of loan application (the payment varies for a joint or single application).

 

JOINT ACCOUNT (TWO-APPLICANT MORTGAGE LOAN): $1,340

If this is to be a two-person mortgage loan application (if there are two people listed on the apartment payment breakdown please bring checks (your checkbook) or money orders to your initial loan appointment and be prepared make a payment for $1,340.

The payment should be made as follows, with two checks:

 

  • CHECK #1: In the amount of $1,240, made out to Penn South Federal Credit Union, for the fees associated with your application for financing.

This payment is comprised of the following: Application fees of $300 per applicant ($600 overall), Credit Report fees of $20 per applicant ($40 overall), and a $600 fee for basic loan processing/ underwriting.

IMPORTANT: These fees are non-refundable. More specifically, even if financing is denied, the apartment offer is rescinded, the loan application is voided, or the loan abandoned by the applicant(s), you will not be refunded this fee.

 

  • CHECK #2: in the amount of $100, made out to Penn South Federal Credit Union, to put on deposit.

$50 is the minimum par value (minimum account balance) per account-holder. Joint accounts have two accountholders, therefore a $100 deposit is required. This minimum balance must be maintained for the life of the account.

IMPORTANT: You may be exempt from having to bring Check #2 (make the deposit) if you are a pre-existing (current) PSFCU accountholder with at least $100 in your PSFCU account.

 

 

SINGLE ACCOUNTHOLDER (SINGLE-APPLICANT MORTGAGE LOAN): $970

If this is to be a one-person mortgage loan application (if there is one person listed on the apartment payment breakdown), please bring checks (your checkbook) or money orders to your initial loan appointment and be prepared make a payment for $970.

The payment should be made as follows, with two checks:

 

  • CHECK #1: In the amount of $920, made out to Penn South Federal Credit Union, for the fees associated with your application for financing.

This payment is comprised of the following: Application fees of $300 per applicant, Credit Report fees of $20 per applicant, and a $600 fee for basic loan processing/ underwriting.

IMPORTANT: These fees are non-refundable. More specifically, even if financing is denied, the apartment offer is rescinded, the loan application is voided, or the loan abandoned by the applicant(s), you will not be refunded.

 

  • CHECK #1: in the amount of $50, made out to Penn South Federal Credit Union, to put on deposit.

$50 is the minimum par value (minimum account balance) per account-holder. This minimum balance must be maintained for the life of the account.

IMPORTANT: You may be exempt from having to bring Check #2 (make the deposit) if you are a pre-existing (current) PSFCU accountholder with at least $50 in your PSFCU account.

 

FOOTNOTE:

 

THE FOLLOWING COSTS ARE NOT PAYABLE AT YOUR INITIAL LOAN APPOINTMENT, BUT MAY APPLY:

 

Co-Signers:

Should you have a poor credit score, you may elect to involve a co-signer.

However, Co-signers require Co-signers require additional processing time and additional fees.

Should you require the use of a Co-signer, there will be a credit report fee of $20, and there is an additional $300 processing fee per co-signer attempt

If your first co-signer is not viable, there is a $200 processing fee per each additional co-signer attempt.

There will also be an additional 2 weeks processing time per co-signer attempt.

 

Additional or Decreased Loan Processing & Underwriting: The fee due for processing & underwriting is to be determined by the type of financing extended; in certain cases an additional processing & underwriting fee in the amount of $250 may be de due at the time of closing.

Alternatively, we may offer a decreased processing & underwriting fee (decreased by $250)  for applicants eligible for (and interested in) a short-term (5 year) mortgage loan.

Those cases, respectively, would have either the additional fee due at closing or a lower “deposit due” at closing.

The fee variance (dollar amount) for additional or decreased processing is $250 in relation to the ($600) basic fee for loan processing & underwriting.

 

Closing Costs and Additional fees:

Should financing be approved, additional fees will be due in an amount that is to be determined.

Generally these fees fall within the range of $500 – $2,000.

 

Loan Deposit due at Closing:

Should financing be approved, a deposit is required for your loan.

The deposit will be an amount equivalent to one month’s loan payment.

This loan deposit must remain in your account until your loan has been paid-off.

 

We will disclose closing costs, additional fees, and the required deposit amount with you after the loan has been processed.