Home Loan & Mortgage FAQs

Yes, you can. Your credit score is just one of many factors that contribute to the types of home loans and the rates that you qualify for. Your down payment, debt-to-income ratio, work history, and the type of home loan you’re interested in are all extremely important as well. One type of home loan for those with lower credit scores are FHA Loans. FHA mortgages allow the homebuyer to put down as low as a 3.5% down payment AND have less-than-perfect credit. Get an idea of what you might qualify for with our Mortgage Loan Calculator. Standard underwriting criteria will apply.

When it comes to home loans, the interest rate only represents how much it costs to borrow money every year, whereas the APR includes all charges and fees associated with the loan. Therefore, APR is a more accurate representation of the total annual cost of the mortgage. Knowing both is important, but the APR can be an especially useful tool when shopping for a home loan. If you would like to learn more about which loan type is best for you and your situation, talk to us. Our mortgage experts are here to help navigate the details and work with you to find the right loan type and/or program that will work best for you and your family.

When buying a home, the standard guideline is to pay 20% of the home’s purchase price upfront as a down payment. For example, if you bought a $250,000 home, you would need to provide $50,000 for a 20% down payment.

However, some types of home loans require less than 20% down payment. With a lower down payment you’ll pay more interest over time. And, you will likely be required to pay a monthly fee called Private Mortgage Insurance (PMI) until you’ve paid off 20% of your home’s purchase price.

You may also be eligible for down payment assistance in the form of low or no-interest loans, grants, tax credits, savings programs, and more. Standard underwriting guidelines apply.

Talk to us to decide what's the best for your situation.

A home loan preapproval is usually a letter provided by a lender stating how much money they would be willing to lend you for your home purchase.

To apply for a preapproval for a home loan, you will need to complete a home loan application and provide some information about yourself. The lender can then determine how much money you would be eligible to borrow. This is not a guaranteed loan, but it gives you a good estimate of what you can afford. 

A preapproval is often the first step before you make an offer on a house. It demonstrates to the sellers that you’re a serious buyer and have funds in order to make the purchase. Being a preapproved buyer can give you a competitive edge over a buyer who is not preapproved. Standard underwriting criteria will apply.

Closing costs are the fees and charges you’ll need to pay before your home loan can be completed, such as title insurance, homeowners’ insurance and recording fees. 

Closing costs can vary, but they’re generally around 2-3% of your home’s purchase price. You’ll want to take closing costs into account when budgeting for your home purchase. At UW Credit Union, we’re proud to offer home loans and low closing costs around—if you find lower closing costs elsewhere, we’ll match them or give you $500.⁵

There are pros and cons to both fixed-rate and adjustable-rate home loans, depending on your situation and goals.

Fixed-rate mortgages provide a steady payment for the life of the loan. A fixed rate may be right for you if you plan to stay in your home for the long term, if you prefer a consistent payment, and/or if you think rates might go up and you want to lock in a low rate.

Adjustable-rate mortgages (ARMs), also called variable-rate mortgages, have a low rate that’s fixed for a certain amount of time. Once that period of time is up, the rate may adjust periodically up or down depending on the market. An ARM might be a good choice if you plan to move or refinance before your rate adjusts, if your budget could withstand potential rate increases, and/or if you expect rates to go down. 

Yes, your monthly home loan payment (the principal and interest) will stay the same for the life of the loan. Keep in mind though that other payments related to your home, such as property taxes and utility bills, are not fixed and may change over time.

Keep in mind that the figures in our Mortgage Rate Quote are just an estimate and do not factor in things like income, credit, debt, etc. Reach out to our team and talk to us or apply online to receive the most accurate quote.

Monthly payment includes principal, interest and mortgage insurance if applicable. Taxes and home insurance are not included.

See how much you can afford to borrow based on your annual income and purchase price on our more detailed Mortgage Qualifier Calculator. Reach out to our team and talk to us or apply online to receive the most accurate quote

We have a great resource to help familiarize yourself with terms you will come across as you buy your home. View our glossary.

A Lock Term can be defined by the interest rate not changing (being locked) between the original rate offer and the closing, as long as the closing is within the specified rate-lock term and there are no changes to your application. WHEDA Loans only allows for 45-day rate locks, so our calculator is set to display 45-day rate locking rates as a starting point. UWCU's other products offer 30-day, 45- or 60-day locking options. These rates may be different depending upon the lock period and the market. 

Reach out to our team and talk to us or apply online to receive the most accurate quote!

Getting preapproved is a step in the application process. Once you fill out an application and provide us a bit more detail about yourself and the loan you are interested in, we may be able to provide you with a preapproval letter. You can then use this preapproval to show sellers you are committed to the homebuying process. This letter may set your offer apart from other offers. Start your application today!

UW Credit Union offers qualified homebuyers the option to open a home equity line of credit (HELOC) at the same time they open a new mortgage loan. 

That gives buyers a source of cash for unexpected expenses, furniture and appliances or just about anything they might need from the first moment they own their home. 

The dual closing process uses one hard credit pull for both loans, and the paperwork involved can be more streamlined than doing each transaction at separate times.  

Ask your Mortgage Loan Officer about UW Credit Union’s Dual Closing option.