Your new home may be closer than you think.
Your home – it’s more than a house. It’s more than four walls. It’s your life, and it’s a huge investment. It can be a long, complex process to make it yours – but rest assured, Alltru Credit Union is here with you every step of the way.
We’ll help simplify the home buying process.
As you start to buy a home, you’ll quickly learn that not everyone is looking out for you, and that even the smallest detail can cost you a lot of time and money. The entire team at Alltru is here to help you make the right decisions along the way.
Before you shop.
Before you start house hunting, it’s important to know how much you can afford. Use our handy calculators or contact us to get in touch with one of our loan counselors to find out. We’ll use some basic information about you, your savings and your income to get an idea. This will help you set realistic expectations when you start looking. Also – make sure to ask us for a preapproval letter. This will give you an edge in contract negotiations and may be able to speed up the closing process so you can move in sooner.
Qualifying for a loan.
Qualification for a mortgage is based on a number of factors, such as your ability to make monthly payments and cover the down payment and any closing costs not included in the loan. We’ll look at your income, your savings and your payment history. In addition, we’ll assess the market value of the home you are purchasing or refinancing. Don’t give up if you have less than perfect credit. Talk to us. We may be able to help.
3. 60 days to your new home.
Once you submit a loan application, the work – and the waiting begin. Fortunately, as long as you cover the details (and again, we’re here to help), the process will go smoothly. With your application in hand, we will have the property appraised, verify your employment and order the title commitment. Once everything is in place, we will prepare the loan for commitment. After you accept the commitment, we will schedule the closing date. Your city or county might require surveys or inspections before you move in. Generally, however, your closing – and move-in – date will be about 60 days after you sign your loan application.
Types of Mortgages
Just as every home is different, every home loan is different. Find the one that fits you and your goals.
Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. As a rule of thumb, it may be harder to qualify for fixed rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate – and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.
Adjustable Rate Mortgage (ARM)
These increasingly popular ARMs, also called 3/1, 5/1 or 7/1, can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a “5/1 loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable rate loan, based on then current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
Want to know more about mortgages?
What You Need
Ready to apply? Here’s what you’ll need, every step of the way.
If you’re even thinking about buying a home, start gathering critical information so you’ll have it all in one place. Even in today’s digital world, you’ll need a lot of documentation for your loan.
Take the next step in your home buying journey.
Looking for help paying your loan?
Learn how to pay, and who to contact if you need help paying your bills.
We’re in your neighborhood.
We are St. Louis, through and through. We have branches throughout the metro area. Plus, as a member you’ll have free access to hundreds of local ATMs.