$500-$2,500 Credit At Closing
Up to $2,500 in lender credits assisting you with closing costs (only applies to purchase loans) ¹
A pre-approval letter from your lender basically states that you have the financial ability to purchase a home at a specific price. For a pre-approval, you'll need to provide some financial data that can later be verified and validated.
That will likely include the following:
Here are some items you'll need to gather before applying for a mortgage. This will speed up the process but is not required before early disclosures, including the Loan Estimate, which are provided to you by PenFed:
After applying for a loan and having your offer accepted on a home, you'll want to keep an eye on interest rates. Doing that will help you estimate when the best time to lock in your rate with PenFed. Locking in your rate means that you and your lender agree on your final interest rate. Your lender will lock the rate and hold that rate for a specific amount of time (usually 30 to 45 days). Now your interest rate is set. Even if rates go up or down before closing, yours will stay the same through the expiration date of your lock.
Your lender delivers a loan estimate to you within three business days of your application. It supplies you with information about your mortgage including:
The purpose of an appraisal is to determine the home’s value so the lender knows the property’s worth. A trained appraiser is an unbiased third-party. It’s their job to understand the real estate in a particular area and how yours compares. The lender orders the appraisal and uses it to justify the amount of money lent for the home. Depending on the loan amount and the property, more than one appraisal may be required.
Home inspections are different from appraisals. A licensed inspector does a thorough examination of all the workings of the home. The inspector will likely review items like the age and condition of the roof, appliances, heating and air conditioning, windows, plumbing, and more. The inspection report will list out any deficiencies and repairs needed.
Underwriting is the process of verifying your loan file and property details to justify approving your mortgage. During this process, the underwriter may ask you to supply additional supporting documents. Here are some of the items the underwriter reviews:
Closing Disclosure
A Closing Disclosure supplies the detailed and expected final information concerning the costs and terms of the mortgage loan you’ve selected. This document is to be delivered to you within three days of closing so that you completely understand all of the financial requirements and closing costs.
Closing on Your Home
The day of closing is an exciting time! You should have your signature hand well-rested as there are many papers to sign. Also, you'll need to bring the necessary funds (wire, certified check or cashier’s check) listed on your closing disclosure. Once the documents have been signed and notarized, you’ll get your keys. Now life in your new home begins.
$500-$2,500 Credit At Closing
Up to $2,500 in lender credits assisting you with closing costs (only applies to purchase loans) ¹
Low Discounted Rates for Home Purchase
No Lender Fees 2
1 For eligible fixed rate, ARM, and VA loans PenFed offers to all members who submit a completed home purchase mortgage application on or after March 1, 2020. Members can receive the lender credit upon closing with PenFed, subject to qualification and approval. For loans $0-$199,999 the lender credit will be: $500. For loans $200,000-$699,999 the lender credit will be: $1,000. For loans $700,000 and up the lender credit will be: $2,500. Pre-Approvals and refinance applications are not eligible for the lender credit. The seller and/or other credits must be reduced if the loan has reached the maximum allowable credit limit per the loan product. Please contact your PenFed Mortgage Loan Officer for more details. The lender credit is available for all funded purchase mortgages in all states, including District of Columbia, Puerto Rico and Guam.
2 Other fees may apply, such as discount points to buy down your rate.