home loan frequently asked questions

Q: What is the best way to begin the home purchasing process?

A: As a first-time buyer, the first step in purchasing a home is to determine what exactly you can afford. By using one of the several calculators on our website, you will be able to figure out affordability in relation to finances, credit score and other information. A free pre-qualification document is also available for home loans too.

Q: What types of Mortgage loans does BlueOx Credit Union offer?

A: BlueOx Credit Union offers Fixed-Rate Home Loans, Construction Loans, Jumbo Mortgages, Vacant Land Loans, Rural Development Loans and Bridge Loans.

Q: What do I need to have available when I apply for a BlueOx Credit Union Mortgage?

A: A pre-approval requires: Past two years’ tax returns with W2s, most recent paystub for all borrowers and two months’ bank statements. A new purchase requires the aforementioned plus a fully executed copy of the purchase agreement, including all addendums. Refinances require all of the above plus: Mortgage statement, copy of home insurance and copies of bills wanting to pay off, if doing a debt consolidation. Upon starting the process, we will require a $450 appraisal fee, which we can transfer from your BlueOx account.

Q: What is BlueOx Credit Union's application fee?

A: At this time there is no application fee.

Q: Where can I apply for a BlueOx Credit Union Mortgage?

A: You can apply online here. You can apply or get pre-qualified by phone by calling (269) 660-1310, Monday - Friday 9 a.m. to 5 p.m. A Mortgage Advisor will guide you through the entire application process. You can also visit any location to apply.

Q: How long does the Mortgage process take?

A: BlueOx Credit Union offers closings in 30 days or less on new home purchase transactions. Please keep in mind that every home loan situation is unique, so it is difficult to estimate how long your specific home mortgage process will take. Some of the factors that affect the timeline include the type and terms of the home loan you are requesting, the types of documentation required in order to secure the loan and the amount of time it takes to provide your lender with those documents. Your BlueOx Credit Union Mortgage Advisor will work closely with you to help you meet your timetable so that deadlines are met and your rate lock(s) are honored.

Q: Do I need to get a home appraisal in order to get a home loan?

A: Yes. We will schedule the appraisal as part of reviewing your home loan application and you will receive a copy of the appraisal at closing.

Q: Does BlueOx Credit Union require Private Mortgage Insurance?

A: Private Mortgage Insurance is required with a Loan-to-Value (LTV) over 80%.

Q: What does the term "Loan-to-Value" mean?

A: The Loan-To-Value ratio is the lesser of either the purchase price or appraised value.

When refinancing my Mortgage, can I get extra money at closing so I can pay off other debt?

A: Yes. Assuming you have sufficient equity, a cash-out refinance enables you to pay off your existing mortgage and may also allow you to take out some of your home’s equity in a lump-sum cash payment at closing for debt consolidation, education expenses, home repairs and remodeling or whatever your needs may be.

Q: What is the maximum amount I can borrow if I want to consolidate bills?

A: On a 1-4 family unit, primary residence or second home you may borrow up to 95% of the property value on a first mortgage. BlueOx Credit Union also offers Home Equity Loans for debt consolidation.

Q: Does BlueOx Credit Union service my BlueOx Mortgage?

A: Yes. For as long as you have it financed with BlueOx Credit Union.

Q: Is there a fee to lock my rate?

A: No, we do not charge a fee to lock your interest rate.

Q: How can I lock in my interest rate?

A: After reviewing your application with a Mortgage Advisor, you are able to lock in your rate for up to 60 days from the date of the application.

Q: Can closing costs be rolled into my loan amount?

A: Closing costs can be rolled into your loan amount on a refinance, not to exceed maximum program guidelines for LTV.

Q: What will my closing costs be?

A: Your closing costs could potentially range between $1,000 and $4,000 depending on the purchase price or refinance amount, which can vary.

Q: What are your rates?

A: You can access our up-to-date Mortgage rates on our website here, or by calling the BlueOx Mortgage Department at (269) 660-1310, Monday - Friday from 9 a.m. to 5 p.m.

Q: Can you help me decide the price of the house with the payment I can afford?

A: By completing an actual loan application, a BlueOx Mortgage Advisor can help you determine a price range and a payment. The payment (including real estate taxes and homeowner’s insurance) is usually about 30 percent of gross monthly income, although there may be exceptions to this rule.

Q: Can I be pre-qualified for a loan and receive a letter?

A: Although it is not necessary to be pre-qualified, it is highly recommended before making an offer. It can be frustrating for both buyers and sellers to agree upon an offer, only to find out the buyer is unable to qualify for it. If everything seems to be in good standing, buyers will be able to obtain both a pre-qualification and a letter.

Q: Will BlueOx Credit Union finance my second home or investment property?

A: Yes. With BlueOx, you can finance a second home or an investment property up to a four family unit.

Q: How does my credit rating affect my home loan interest rate?

A: The way you have handled your finances in the past can help predict how you may do so in the future, so lenders will consider your credit rating when you apply for a mortgage or other loan. A higher credit score may help you qualify for a better mortgage interest rate.

Q: What are my Mortgage payment options?

A: There are several convenient ways to make your Mortgage payment at BlueOx Credit Union. You may choose to set up an automatic transfer each month from your Savings or Checking Account to your Mortgage loan. You may also decide to make the loan payment transfer yourself each month from within Online Banking. You may also make a payment using funds from another financial institution through LoanPay Xpress or stop by any branch location to make a payment in person.

Q: How do you apply my home loan payment?

A: We are required to apply payment amounts in a certain way given the law or the terms in your home loan contract, but once those requirements are met, you have options to instruct us on how you would like us to apply additional payments.

Here are the different options we have to apply your home loan payment if your loan is in good standing at the time the payment is received:

Contractual payment due: If you have a contractual payment due you are required to send us a full payment.

Next contractual payment due: If the payment you make is equal to or greater than two months of contractual payments, unless instructed otherwise, we may apply the funds to your current and next contractual home loan payment. Any amount greater than the two months of contractual payments may be applied to principal.

Escrow: If you have an escrow account, a portion of your contractual payment due will be applied to your escrow account.

Outstanding fees: When a fee has been assessed to your home loan, we may apply a portion of your payment to an outstanding fee.

Unpaid principal balance: Some members like to pay extra on their home loan to reduce the future interest they pay. If your extra payment is less than the next contractual payment, it may be applied to principal. Example: If you pay an extra $100, or $100 more than your contractually required payment, we may apply the extra funds to reduce the principal of your loan.

Q: How can I view what my Mortgage balance is and how my payments have applied?

A: If your account is active, you can view your Mortgage activity (such as principal balance, next payment due, etc.) and how your payments were applied within Online Banking and on your monthly statement.

Q: What happens if I am unable to make my Mortgage payment?

A: If you are unable to make your payment for any reason, please contact us at (800) 648-8035, Monday - Friday 9 a.m. to 5:00 p.m.

Q: When will I receive my year-end statement of interest paid on my Mortgage for tax purposes?

A: If the interest you paid is $600 or more, we will mail you IRS Form 1098 by the end of January or deliver it electronically if you’ve enrolled to receive eStatements.

Q: Will BlueOx Credit Union escrow my taxes?

A: BlueOx Credit Union will escrow for your real estate taxes and homeowner’s insurance unless a waiver is requested. In order to receive a waiver, the borrower must have at least 20% equity into the property based on the lower of the original appraisal or sales price.

Q: If I do not escrow my property taxes and cannot pay them, what can I do?

A: BlueOx Credit Union can set up an escrow account and pay your taxes for you. Your monthly payment will increase to cover the taxes. Your account will show a shortage until you have made enough increased payments to cover the shortage.

Q: If I received a copy of my tax bill, supplemental bill or new tax assessment, do I pay it or does BlueOx Credit Union pay it on my behalf?

A: Some states will send you a copy of your tax bill, and if you have an escrow account on your loan, BlueOx Credit Union will pay the tax bill on your behalf. We will use the funds collected through your payments over the past 12-month period.

If you receive a supplemental or newly assessed tax bill that's not part of your normal taxes, please contact us to see if we have that as part of your taxes. If we do not, we can determine if we can pay the tax bill out of your escrow account. This may create a shortage, and your payment may increase to cover the cost of the new tax bill.

Q: Can I pay off my Mortgage early?

A: Yes. Please contact our Mortgage Department at (269) 660-1310, Monday - Friday 9 a.m. to 5 p.m. for assistance.

Q: What is a Mortgage lien release?

A: A Mortgage lien release, or Discharge of Mortgage, is a document sent by your Mortgage company to your local county Register of Deeds office after your Mortgage loan is paid off. The lien release states that the lien holder is releasing its lien against the property.

Q: How do I request a lien release from BlueOx Credit Union when one is not available in county records?

A: Please allow 90 days after the Mortgage loan has been paid off before contacting the applicable county Register of Deeds office to obtain a copy. If a copy is not available with the county recorder’s office after 90 days, please call the BlueOx Credit Union at (269) 660-1310 to submit a lien release request.

Q: What information is required in order to submit a lien release request if a Mortgage loan serviced by BlueOx Credit Union has been paid off and there is no lien release of record in the county Register of Deeds office?

A: When contacting BlueOx, please have the loan number available for the lien in question. If you do not have a loan number, please be prepared to provide the below information:

• Full Name of all borrowers
• Property address
• Loan amount and year of lien
• Copy of recorded security instrument or current title report

Q: How long does it take for BlueOx Credit Union to process a lien release request and submit the request to the county?

A: Please allow BlueOx Credit Union 15 business days to process the lien release request and submit the request to the county.

Q: How do I contact BlueOx Credit Union if I have questions?

A: You can contact us with questions by calling (800) 648-8035, Monday – Friday from 9 a.m. to 5 p.m. Additional ways to contact the Credit Union: BlueOXcu.org/contact-us.